VI During the course of operation, an enterprise may need to suspend its branch operations for restructuring, adjusting business strategies, or due to various other objective reasons. However, branch suspension is not merely a cessation of activities in practice but must also follow the correct sequences and procedures prescribed by law to avoid risks of administrative penalties and to protect the enterprise’s rights and interests. Let us join Pham Consult in exploring the important regulations concerning the notification of branch suspension so that enterprises can correctly and fully perform their legal obligations.
- Legal regulations on enterprise’s branch suspension
Branch suspension is the act whereby an enterprise notifies the business registration authority of the temporary cessation of its branch’s operations for a specified period due to various reasons, such as facing difficulties in business operations and being unable to continue business activities, or requiring time to reorganize affairs.
Pursuant to the legal regulations on enterprise registration, branches, representative offices, or business locations of an enterprise may all suspend their operations upon the enterprise’s demand. The duration of each branch suspension shall not exceed one (01) year per notice; however, the enterprise may continue to extend this period if necessary.
- Dossier for notifying enterprise’s branch suspension
Pursuant to Clause 2, Article 60 of Decree No. 168/2025/ND-CP, the dossier for notifying an enterprise’s branch suspension shall include the following documents and papers:
– The notice of suspension;
– A copy or the original of the resolution or decision of the company’s owner, for single-member limited liability companies; of the Members’ Council, for limited liability companies with two or more members and partnerships; of the Board of Directors, for joint-stock companies, regarding the suspension of operations in the case of notification of the enterprise’s suspension.
– In the event of authorization to perform the procedures, the dossier must be accompanied by the following papers:
+ In case of authorization to an individual: The power of attorney for the individual to perform procedures related to enterprise registration. This power of attorney is not required to be notarized or certified.
+ In case of authorization to an organization: A copy of the authorization contract for the organization to perform procedures related to enterprise registration, and a letter of introduction or a document of task assignment from such organization to the individual directly performing the procedures related to enterprise registration.
+ In case of authorization to a public postal service provider: When performing the procedures, the postal staff must submit: A copy of the dispatch slip using the form issued by the public postal service enterprise, bearing the signatures of the postal staff and the person competent to sign the application for enterprise registration.
+ In case of authorization to a postal service provider other than a public postal service provider: A copy of the authorization contract for the organization to perform procedures related to enterprise registration, and a letter of introduction or a document of task assignment from such organization to the individual directly performing the procedures related to enterprise registration.
- Sequences and procedures for notifying enterprise’s branch suspension
In case a branch suspends its operations, the enterprise shall send the notification dossier to the provincial-level Business Registration Authority where the branch’s headquarters are located at least three (03) working days prior to the suspension date. In cases where the branch wishes to continue the suspension after the expiration of the notified period, it must send the notification dossier of continued suspension to the provincial-level Business Registration Authority at least three (03) working days prior to the date of such continued suspension.
Upon receiving the notification dossier, the provincial-level Business Registration Authority shall hand over a dossier receipt and an appointment slip for returning results to the submitter. Within one (01) working day from the date of receipt of the dossier, the provincial-level Business Registration Authority shall examine the validity of the dossier and issue a written confirmation of the branch’s suspension notification; in cases where the dossier is invalid, the provincial-level Business Registration Authority shall notify the enterprise in writing of the contents requiring amendments or supplementations.
