Procedures for business suspension of FDI companies

FDI company (abbreviated from the English phrase “Foreign Direct Investment “) is translated as a company with foreign direct investment. In Vietnam, the procedure for suspending the operation of an FDI company is similar to the procedure for suspending a Vietnamese enterprise. The following article will introduce more details about the documents that enterprises need to prepare and the steps for implementing the business suspension procedures of FDI companies as follows:

Legal basis related to procedures for business suspension of FDI companies 

·  Enterprise Law 2020 ;

·  Decree 01/2021/ND-CP on enterprise registration.

Business suspension period of the FDI company

The period of business suspension of the FDI company for each notification must not exceed one year. Accordingly, the FDI company is suspended for no more than two years for 02 consecutive suspensions.

Obligation to notify the business suspension of the FDI company

FDI companies suspending their business or resuming their business ahead of the announced time must send a notice to the Business Registration Office where the enterprise is headquartered at least 03 working days before the date of suspension or resumption of business. business ahead of time announced. In case an enterprise wishes to continue to suspend its business after the notice period expires, it must notify the Business Registration Office at least 03 working days before the date of business suspension.

Documentation of business suspension of FDI companies

• Notice of business suspension ;
• Resolutions, decisions, and copies of the meeting minutes of the Members’ Council, for limited liability companies with two or more members, partnerships, of the Board of Directors, for joint-stock companies; resolutions and decisions of the company owner, for one-member limited liability companies on the business suspension.

Obligations of the enterprise upon suspension of business activities

During the business suspension, the enterprise must fully pay the outstanding taxes, social insurance, health insurance, and unemployment insurance; continue to pay all debts, complete the performance of contracts signed with customers and employees, unless otherwise agreed by the enterprise, creditors, customers, and employees.

Some notes when doing procedures for business suspension of FDI companies

After receiving the application for business registration, the Business Registration Office shall hand over a receipt, check the validity of the dossier, and issue a confirmation of the enterprise’s business suspension registration, a certificate of business registration. The enterprise, branch, representative office, or business location registered to continue its business within 03 working days from the date of receipt of a valid application.

In case an enterprise registers to suspend business, the Business Registration Office updates the legal status of the enterprise in the National Enterprise Registration Database to the status of business suspension.

Enterprises can apply to continue business before the announced deadline. Business Registration Office updates the legal status of the enterprise in the National Business Registration Database.

Procedures for business suspension of FDI companies at the request of competent state agencies

In case the Business Registration Office receives a written request from a competent state agency that the enterprise conducts conditional business activities, the sector or trades can access the market and invest abroad but do not meet the conditions prescribed by law, Chamber business registration notice requires enterprises suspend business lines of investment and business conditions, market access for foreign investors.

In case an enterprise does not suspend or terminate its business in a conditional business or investment sector, or business sector or trades subject to conditional market access for foreign investors upon request, the Business Registration Office request enterprises to report on their compliance with the provisions of the Enterprise Law 2020 when deeming it necessary and speeding up the fulfillment of their reporting obligations.

Within 03 working days from the date on which the Business Registration Office receives a written request from a competent state authority, the enterprise is requested by a competent authority to suspend business or complete its execution. After completing the judicial measures following specialized laws, the Business Registration Office updates the information on the National Business Registration Database and publishes it on the national portal on registration. business registration.

Customers wishing to carry out procedures for business suspension of FDI companies or set up a company in Vietnam, please contact Viet An Law Firm for specific advice!