VI In the context of ever-changing business, temporary suspension of operations can be a strategic decision or a force majeure situation for the enterprise. Current laws clearly stipulate the procedures for notifying temporary suspension of business, ensuring transparency and responsibility of enterprises towards state management agencies. Mastering and properly implementing this process not only helps enterprises comply with the law but also creates favorable conditions for resuming operations in the future.
1. Concept of temporary suspension of business
According to Article 41 of Decree No. 01/2021/ND-CP on business registration, “temporary suspension of business” is a legal status of an enterprise, which is the enterprise changing its legal status from “in operation” to “temporary suspension of business”. During the period of temporary suspension of business, the enterprise still exists but is not allowed to conduct business activities, including not being allowed to sign contracts, not being allowed to issue invoices or performing any other activities.
The date of transfer of legal status to “Temporary suspension of business” is the date the enterprise registers to begin temporary suspension of business. The date of termination of legal status to “Temporary suspension of business” is the date of termination of the temporary suspension period that the enterprise has notified or the date the enterprise registers to resume business before the notified period.
2. Application for temporary suspension of business of the enterprise
According to the provisions of Article 66 of Decree 01/2021/ND-CP, the application for temporary suspension of business of the enterprise includes the following documents:
– Notice of temporary suspension of business of the enterprise according to the form of Appendix II-19 issued with Circular No. 01/2021/TT-BKHĐT on guidance on business registration;
– Resolution, decision and copy of the meeting minutes of the Board of Members for a limited liability company with two or more members, a partnership; of the Board of Directors for a joint stock company on temporary suspension of business; resolution, decision of the company owner for a one-member limited liability company on temporary suspension of business;
– Authorization letter for an individual to submit the application and receive the results (in case the legal representative of the enterprise does not directly submit the application);
– Copy of personal legal documents of the authorized person to carry out the procedure.
3. Procedures for registering temporary suspension of business of an enterprise
In case an enterprise temporarily suspends its business, the enterprise shall prepare 01 set of documents and send a notice to the Business Registration Office where the enterprise is headquartered at least 03 working days before the date of temporary suspension of business. The period of temporary suspension of business for each notice shall not exceed one year.
After receiving the business registration dossier, the Business Registration Office shall issue a Receipt, check the validity of the dossier and issue a certificate of temporary suspension of business registration within 03 working days from the date of receipt of the valid dossier.
When a business registers temporary suspension of business, the Business Registration Office shall update the legal status of the business and the status of all branches, representative offices and business locations of the business in the National Database on Business Registration to temporary suspension of business.
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