Notice of temporary suspension of private enterprise business | iGuide

iGuide Stories

Notice of temporary suspension of business in Private Enterprise

A temporary suspension of business in a private enterprise can occur for a variety of reasons, from restructuring to changes in business strategy. To ensure that the suspension is legal and does not affect the interests of the enterprise, it is necessary to make a notification in accordance with legal regulations. This article will guide you in detail on the steps to take to notify a temporary suspension of business accurately and effectively.

1. Regulations on notice of temporary suspension of business for private enterprises

At least 03 working days before the date of temporary suspension of business, private enterprises must notify the time and duration of temporary suspension.

The period of temporary suspension of business shall not exceed 01 year. After the notified period expires, if the enterprise still needs to continue the temporary suspension of business, it must make a new notification at least 03 working days before the date of continued temporary suspension of business.

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

2. Procedures for notification of temporary suspension of business for private enterprises

The profile includes:

1. Notice of temporary suspension of business (Appendix II-19 form issued with Circular 01/2021/TT-BKHĐT);

2. For enterprises operating under an Investment License, Investment Certificate or other documents of equivalent legal value, please submit the following:

- Valid copy of Investment Certificate, Investment Certificate or equivalent documents;

- Valid copy of the enterprise's Tax Registration Certificate;

- Application for supplementing and updating business registration information (Appendix II-14 form issued with Circular 01/2021/TT-BKHĐT).

3. Authorization letter for the person submitting the application and receiving the results if he/she is not the legal representative of the enterprise. This document does not need to be notarized or authenticated;

4. A valid copy of one of the following personal identification documents of the authorized person performing the procedure (if any):

- For Vietnamese citizens: Valid Citizen Identification Card or National Identity Card or Vietnamese Passport.

- For foreigners: Valid foreign passport or document in lieu of a valid foreign passport.

3. Place to submit application: Business Registration Office - Department of Planning and Investment where the company is headquartered.

4. Processing time: Within 03 (three) working days from the date of receipt of valid documents.

In addition, an operating private enterprise that sends a document to the directly managing tax authority or the business registration authority regarding the temporary suspension of production and business activities during the calendar year (from January 1 to December 31) is not required to pay the business license fee for the year of temporary suspension of business activities, provided that: The document requesting temporary suspension of production and business activities is sent to the tax authority or the business registration authority before the deadline for paying the fee as prescribed (January 30 of each year) and has not paid the business license fee for the year of temporary suspension of production and business activities. In case of temporary suspension of production and business activities that does not meet the above conditions, the business license fee for the whole year must be paid. (Please see details at the job: Declaration and payment of business license fees).