Navigating the legal requirements for business suspension in Vietnam requires careful attention to regulatory compliance and procedural steps mandated by Vietnamese law. From submitting official notifications to tax authorities and business registration offices to managing employee relations and outstanding contractual obligations, business owners need to understand the comprehensive framework that governs temporary business closures in Vietnam. The proper execution of these suspension procedures not only ensures legal compliance but also helps businesses maintain good standing with regulatory bodies while temporarily halting their operations.
In the article below, 68 SOLUTIONS presents an overview of procedures for business suspension in Vietnam.
What is temporary suspension of business?
“Temporary suspension of business” is the legal status of an enterprise that is temporarily suspending business according to the provisions of Clause 1, Article 206 of the Law on Enterprises. Thus, it can be understood that temporary suspension of business means that an enterprise temporarily does not carry out business activities, meaning that the enterprise is not allowed to sign contracts, issue invoices or have any other activities. during the pause. After the expiration of the term, the enterprise must resume operations if it does not have to go through dissolution or transfer procedures.
Procedures for Business Suspension in Vietnam
Enterprises must send a notice to the Business Registration Office where the enterprise is registered at least 03 days before suspending business. Notification content includes:
- Name, head office address, business code and date of issuance of the Business Registration Certificate or other equivalent documents for the business.
- Business suspension period: start date and end date of suspension period.
- Reason for suspension.
Components of Business Suspension Dossier Under Vietnamese Law
The suspension dossier typically includes:
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Notice of business suspension (reference form in Appendix No. II-19 Circular 01/2021/TT-BKHDT)
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Minutes of the meeting of the board of directors/members’ council on business suspension (for joint stock companies/multiple-member LLCs)
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Decision on business suspension
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Power of attorney for the person applying
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Posting of unusual information: The company must publish on its website, publications (if any), and publicly post at its headquarters and business locations any unusual information within 36 hours of suspending part or all of its business activities
The Time Limit for Business Suspension
The time limit of business suspension stated in the notice shall not exceed one year.
After the expiry of the notified period, if the enterprise, branch, representative office, or business location wishes to continue the business suspension, it must notify the Business Registration Office at least 03 working days before the continuation date.
Each suspension notice cannot exceed one year per registration.
Notes on Business Suspension
According to the Law on Enterprise 2020:
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During the period of business suspension, the enterprise must pay all outstanding taxes, continue to pay debts, and complete the implementation of contracts signed with customers and employees unless the enterprise, creditors, customers, and employees have other agreements.
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Taxpayers who do not incur tax obligations during the period of business suspension are not required to submit tax declarations for the period of business suspension.
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Enterprises must submit tax declarations for the period of operation;
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In case the taxpayer temporarily suspends business for less than the entire calendar year or fiscal year, they must still submit annual tax settlement dossiers.
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Taxpayers who carry out business registration procedures at the business registration agency must notify in writing the business registration agency where the taxpayer registered of the temporary suspension or resumption of business activities as prescribed.
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The business registration authority shall be responsible for notifying the tax authority of information about the taxpayer’s temporary suspension of business or resumption of business activities no later than 02 (two) working days from the date of receipt of the taxpayer’s dossier. In case the taxpayer registers for business suspension, the tax authority shall be responsible for notifying the business registration authority of the taxpayer’s outstanding tax obligations to the state budget no later than 02 (two) working days from the date of receipt of information from the business registration authority.
Temporarily suspending business in Vietnam is not simply a business decision—it is a legal process that must follow strict regulatory steps to ensure compliance. Enterprises must prepare all relevant documentation and adhere to official timelines to avoid penalties and maintain good legal standing. For full support throughout this process, businesses are encouraged to work with a professional consultancy.
68 SOLUTIONS offers end-to-end assistance for business suspension procedures, ensuring your compliance with all legal obligations while helping you resume operations smoothly when the time is right.
Contact our team today for personalized and fastest assistance via hotline: (+84) 963 580 958
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