After the covid epidemic, many businesses face difficulty, and this is the reason why a lot of businesses decide to stop operating their work. However, instead of going dissolve or bankrupt your business, you can choose to suspend your business to have time to arrange your work because of its easier implementation process. In case you want to know more about business suspension, let us discover legal issues that you must concern about when deciding to suspend business in Vietnam and the legal service for registration of business suspension in Vietnam at Apolo Lawyers - Solicitors & Litigators (Tel (+84) 903.419.479).
There are some legal issues about business suspension you should pay attention to.
According to Article 41.1, Decree No.01/2021/ND-CP on Enterprise Registration regulates business suspension:
Article 41: Legal status of the business:
“Business suspension is the legal status of the business which is in the period implement business suspension in accordance with the clause 1 Article 206 Law on Enterprise. Day switching legal status “Business suspension” is the day that businesses register to start to suspend business. Day ending legal status “Business suspension” is the day that the business suspension period ends that business announced or the day that businesses register to continue operating before the time-limits announced.”
Easily understood, the business suspension is that the business temporarily stops implementing the operation of the business at a specific time in accordance with the provisions of the Law.
Business suspension is a right of companies and enterprises. However, not any companies or enterprises can suspend their business whenever they want. There are some conditions that they must follow when preparing to suspend business in Vietnam.
Depending on the type of business, there are different regulations regarding the notification of business suspension.
The notification of business suspension is regulated at Article 206 Law on Enterprise, an enterprise or company shall send a written notification to the business registration authority at least 03 working - days before the suspension or resumption date.
Besides that, if the enterprise or company demands to continue to suspend business out of time-limits announced, they will notify the business registration office at least 03 working – days before continuing their business suspension.
In case the household businesses suspend business beyond 30 days, household businesses shall notify the business registration authority of the district that household business registers business and tax authority. Therefore, if your household business just demands to suspend business under 30 days, you do not need to make a notification. In the event the household business suspending business continues to operate before the time-limits announced, the household business shall send a written notification to the business registration authority at least 03 working – days of the district that the household business registers business before the suspension or resumption date.
For the companies or enterprises, the time-limits of each business suspension are no more than 1 year, but there is no limited number of renewals. When the time-limits expires, if you want to continue to suspend business, you shall notify the business registration authority at least 03 working – days before the day of your business suspension. In the case of household businesses, there are no time-limits for them to suspend business.
According to point clause 2, Article 4 Decree No. 126/2020 on Elaboration of the Law of tax administration:
“Taxpayers do not need to file the tax declaration dossier, except in case taxpayers suspend business not a full month, quarter, the Gregorian year or the fiscal year, taxpayers still have to file the tax declaration dossier by month, and quarter; the annual tax statement dossier.”
Therefore, the companies or enterprises do not need to file tax reports, but in one reporting period, if the companies or enterprises operate just one day, the companies or enterprises must file tax reports for this period.
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There are many things that clients must be concerned about business suspension, so it is not easy to prepare to suspend business. In case clients get in trouble with business suspension or the procedure of business suspension in Vietnam, feel free to contact us. Apolo Lawyers - Solicitors & Litigators with high-quality and professional solicitors and litigators team will give you a full stack of legal services about business suspension fastly and effectively. Using the service of the Apolo Lawyers team, you will be helped in the following tasks:
Proud to be an experienced law firm, Apolo Lawyers claims to provide our clients legal service on business suspension in the best way. Do not hesitate to contact us.
For further information, please contact us: Apolo Lawyers