(+84) 9 61 67 55 66
info@vietanlaw.vn

Procedures for Business Suspension in Vietnam

Navigating the legal requirements for business suspension in Vietnam requires careful attention to regulatory compliance and procedural steps mandated by Vietnamese law. From submitting official notifications to tax authorities and business registration offices to managing employee relations and outstanding contractual obligations, business owners need to understand the comprehensive framework that governs temporary business closures in Vietnam. The proper execution of these suspension procedures not only ensures legal compliance but also helps businesses maintain good standing with regulatory bodies while temporarily halting their operations. In the article below, Viet An Law Firm will present clients with an overview of procedures for business suspension in Vietnam.

Table of contents

Hide

    Procedures for business suspension in Vietnam

    According to the provisions of the Law on Enterprise 2020, when a company needs to temporarily suspend business, it must notify in writing the time and duration of the temporary suspension or resumption of business to the Business Registration Authority at least 3 days before the date of suspension.

    Components of business suspension dossier under Vietnamese law

    Components of business suspension dossier under Vietnamese law

    • Notice of business suspension;
    • Minutes of the meeting of the board of directors/members’ council on business suspension for joint stock companies/multiple-member LLCs;
    • Decision on business suspension;
    • Power of attorney for the person applying;
    • Posting of unusual information: The company must publish on its website, publications (if any), and publicly post at its headquarters and business locations any unusual information within 36 hours of suspending part or all of its business activities.

    The time limit for business suspension

    The time limit of business suspension stated in the notice shall not exceed one year. After the expiry of the notified period, if the enterprise, branch, representative office, or business location wishes to continue the business suspension after the expiry of the notified period, it must notify the Business Registration Office at least 03 working days before the date of continued business suspension. The time limit of business suspension for each notification shall not exceed one year.

    Notes on business suspension

    According to Law on Enterprise 2020:

    • During the period of business suspension, the enterprise must pay all outstanding taxes, continue to pay debts, and complete the implementation of contracts signed with customers and employees unless the enterprise, creditors, customers, and employees have other agreements.
    • Taxpayers who do not incur tax obligations during the period of business suspension are not required to submit tax declarations for the period of business suspension.
    • Enterprises must submit tax declarations for the period of operation;
    • In case the taxpayer temporarily suspends business for less than the entire calendar year or fiscal year, they must still submit annual tax settlement dossiers.
    • Taxpayers who carry out business registration procedures at the business registration agency must notify in writing the business registration agency where the taxpayer registered of the temporary suspension or resumption of business activities as prescribed.
    • The business registration authority shall be responsible for notifying the tax authority of information about the taxpayer’s temporary suspension of business or resumption of business activities no later than 02 (two) working days from the date of receipt of the taxpayer’s dossier. In case the taxpayer registers for business suspension, the tax authority shall be responsible for notifying the business registration authority of the taxpayer’s outstanding tax obligations to the state budget no later than 02 (two) working days from the date of receipt of information from the business registration authority.

    Clients require support on procedures for business suspension in Vietnam, please contact Viet An Law for the most specific advice!

    Related Acticle

    Trade secret protection in Macau

    Trade secret protection in Macau

    In Macau, a busy economic and tourism hub, the protection of trade secrets plays a core role in maintaining the competitive advantage of businesses. Trade secrets, including recipes, production processes,…
    Notes when setting up a company in Italy

    Notes when setting up a company in Italy

    Italy, with its strategic location in the heart of Europe, is an attractive destination for foreign investors. Italy’s diverse economy, from the luxury fashion industry to cutting-edge technology, offers a…
    Instructions on procedures after setting up a company in Portugal

    Instructions on procedures after setting up a company in Portugal

    After completing the procedures for establishing a company in Portugal, in order to be able to officially put into operation, investors may need to carry out some post-establishment procedures that…
    Procedures for setting up a company in Spain

    Procedures for setting up a company in Spain

    Spain, with its strategic location and one of the largest economies in the European Union, has always been an attractive destination for international investors and entrepreneurs. However, to establish a…
    Steps to prepare year-end financial statements for businesses in Vietnam

    Steps to prepare year-end financial statements for businesses in Vietnam

    Preparation of year-end financial statements is one of the important and mandatory tasks for every business, regardless of the size or type of operation. Financial statements not only reflect the…

    CONTACT VIET AN LAW

    In Hanoi: (+84) 9 61 67 55 66
    (Zalo, Viber, Whatsapp, Wechat)

    WhatsApp Chat

    whatsapp-1

    In Hochiminh: (+84) 9 61 67 55 66
    (Zalo, Viber, Whatsapp, Wechat)

    WhatsApp Chat

    whatsapp-1

    ASSOCIATE MEMBERSHIP