In the context of a constantly changing business market influenced by various factors, temporarily halting operations can become a crucial decision for a business. Below is a detailed guide on the procedure for temporarily suspending business operations, the related documents, and essential notes to ensure that the suspension process proceeds smoothly and in accordance with legal regulations.
To temporarily suspend business operations, the enterprise needs to prepare the following documents:
- Notice of temporary business suspension.
- Minutes of the meeting of the Board of Directors (for joint-stock companies) or minutes of the meeting of the Members' Council (for limited liability companies with two or more members) regarding the decision to temporarily suspend business operations.
- Decision on the temporary suspension of business operations.
- Announce the information about the temporary suspension of business operations on information pages, publications, and at the workplace within 36 hours from the time of the suspension.
- Maximum duration: A business can temporarily suspend operations for a maximum of 1 year for each registration.
- No limit on the number of registration: Businesses can temporarily suspend operations multiple times, but they must ensure compliance with legal regulations regarding the duration and provide complete notifications.
When deciding to temporarily suspend business operations, the company needs to take the following steps:
Step 1: Notify the Business Registration Office of the temporary suspension or continuation of business (if you wish to resume before the deadline) at least 3 working days before the planned suspension or continuation date.
Step 2: If the business wishes to continue the temporary suspension after the notified period has ended, it must send a new notification to the Business Registration Office at least 3 working days before the date it intends to continue the suspension.
Step 3: The application for temporary business suspension must include the resolution, decision, and a copy of the meeting minutes of the Members' Council (for companies with two or more members), the Board of Directors (for joint-stock companies), or the decision of the owner (for single-member limited liability companies).
Step 4: The Business Registration Office will review and issue a confirmation regarding the temporary suspension or continuation of business within 3 working days from the date of receiving a valid application.
Step 5: The Business Registration Office updates the legal status of the enterprise in the national business registration database, including the status of branches, representative offices, and business locations.
- Timely notification: Businesses must inform the competent authority at least 3 days before temporarily suspending their operations.
- Submitting the tax declaration: Businesses are still required to submit tax declarations throughout the period of temporary business suspension.
- Settling debts: The business must fully settle its debts to partners, customers, and employees before temporarily halting operations.
- Finalizing contracts: Businesses need to complete the contracts signed with customers and employees before temporarily halting operations.
- Tax declaration: If the business does not incur tax obligations during the suspension period, there is no need to submit tax declaration documents to the tax authority.
- Notify the tax authority: Businesses need to inform the tax authority about the temporary suspension or continuation of operations within 2 days from the date of registration.
Step 1: Prepare the temporary business suspension dossier, including the required documents and the reason for the suspension.
Step 2: Submit the application online at the Department of Planning and Investment where the headquarters is registered.
Step 3: The Business Registration Office receives and evaluates the application, updating the status online.
Step 4: Receive a notice of temporary business suspension if the application is valid.
Step 5: Officially suspend business operations as per the announced timeline. The business can resume operations after the expiration of the term or register to resume operations before the term ends.
Please note that this procedure only needs to be submitted to the Department of Planning and Investment, and does not need to be submitted to the company's tax authority.
In summary, businesses need to clearly understand the regulations and procedures related to temporarily suspending operations to ensure that the process is carried out in accordance with the law, avoiding any impact on the rights of stakeholders, as well as obligations to the State.
If you need more information or assistance, please contact A Dong Company for detailed advice.
Address: Room F2&F3 FOSCO Building, No. 2 Phung Khac Khoan, Da Kao Ward, District 1, Ho Chi Minh City
Hotline: 0903 693 301 - 0909 393 329 - 0903 641 946
Email: info@a-dong.com.vn
Website: a-dong.com.vn
