Comprehensive business suspension services starting at VND 1,500,000

The business suspension services is a practical solution for companies looking to temporarily cease operations but are unsure of where to start. To assist businesses in completing the necessary procedures quickly, TinLaw offers a comprehensive business suspension service package. Learn more in the article below!

When should a business suspend operations?

A business may opt to suspend operations in the following situations:

• When the business owner needs time to conduct market research to restructure the company. 
• When the business ceases production or commercial activities. 
• When the accounting system faces challenges in finalizing taxes or managing invoices and documents, making it impossible to complete dissolution procedures. 

In such cases, suspending business operations is a necessary step. It allows businesses to reorganize and ensures smoother operations in the future.

Challenges businesses face when suspending operations?

Amid the global economic recession, many companies are unable to sustain their operations and resort to business suspension as a solution. However, since this process is not within their expertise, most business owners encounter significant challenges during the procedure, including:

• Lack of an account to submit the suspension application online. 
• Administrative agencies not accepting direct submissions due to pandemic restrictions. 
• Inexperience in handling requests for adjustments or supplements from the Department of Planning and Investment; 
• Limited understanding of updated regulations regarding business suspension. 

To avoid complex procedures or extended timelines, consider using TinLaw’s business suspension services for a smooth and efficient process.

Comprehensive business suspension services at TinLaw

TinLaw’s comprehensive business suspension services provide clients with end-to-end support, ensuring a smooth and efficient process.

• Consultation on business suspension matters:
  • Advising on tax, accounting, and labor issues before, during, and after the suspension procedure;
  • Providing guidance on the suspension period and offering practical advice to clients;
  • Addressing other corporate law-related questions clients may have. 
• Preparation of business suspension documents:

• • Notice of Business Suspension
  • Decision on Business Suspension
  • Minutes of the Board of Members/Board of Directors meeting (for multi-member LLCs or JSCs, if applicable)
  • Power of Attorney authorizing TinLaw to handle the procedure
• Submission to the business registration office: After preparing the documents, TinLaw will submit the application to the Business Registration Office and address any additional requests from the office (if applicable).
• Delivering results to clients: TinLaw will obtain the Certificate of business suspension registration and deliver it directly to the client.

TinLaw handles the entire process from A to Z, ensuring client satisfaction and optimal results. Contact TinLaw today if you require assistance with business suspension!

Cost of comprehensive business suspension services at TinLaw

TinLaw is committed to delivering the best value and results to clients at competitive prices. The cost of TinLaw’s comprehensive business suspension services starts at VND 1,500,000. This fee may vary depending on the type of business but is guaranteed to remain unchanged throughout the process.

Documents required for business suspension services

When using TinLaw’s business suspension services, clients only need to provide:

• A scanned copy of the Business Registration Certificate.
• The intended suspension period

Once all documents are received, TinLaw will assist in preparing the necessary paperwork and completing all remaining procedures.

Timeline for business suspension services at TinLaw

TinLaw guarantees to complete the business suspension procedures for clients within 5–7 working days.

• 1–2 days: TinLaw prepares all documents, submits them to the Department of Planning and Investment (DPI), and delivers the results directly to the client;
• 3–5 days: The Business Registration Office processes the application. 

Note: TinLaw offers free delivery of documents and results throughout the procedure.

Business suspension service process at TinLaw

TinLaw’s service process is designed to help clients complete their business suspension procedures quickly and efficiently. Below are the three steps involved:

• Step 1: Contact and Detailed Quotation

Upon receiving a request for business suspension services, TinLaw provides a consultation outlining the tasks involved and sends a detailed quotation to the client.

• Step 2: Drafting and signing the service agreement

After discussing and agreeing on the details, TinLaw and the client sign the business suspension service agreement.

• Step 3: Executing the service

TinLaw handles all procedures related to the business suspension process and delivers the final results to the client.

If you need more detailed information or want to begin the process, don’t hesitate to contact TinLaw today!

Legal regulations on business suspension

Business suspension must be conducted in accordance with legal regulations and approved by the relevant authorities. Below are the key legal requirements for this procedure:

• Businesses must submit a written notification to the Business Registration Office no later than three working days before the suspension date or before resuming operations earlier than the notified suspension period. 
• The suspension period cannot exceed one year per instance. However, there is no limit to the number of suspensions; 
• If a business wishes to extend the suspension beyond the previously notified period, it must submit a new notification no later than three working days before the extended suspension begins. 

Adhering to legal regulations ensures a smoother business suspension process and prevents violations of legal requirements.

Benefits of business suspension

Business suspension plays a crucial role in the development and restructuring process of a company. Below are the key benefits of this decision:

• Allows businesses to evaluate the market and develop new business strategies. 
• Reduces operating costs, staffing expenses, and other expenditures, thereby easing financial pressure. 
• Provides an opportunity to focus on financial management, settle debts, and prepare for the next steps. 
• Gives time for restructuring and improving operational efficiency before resuming activities. 
• Helps businesses avoid legal risks such as tax penalties or disputes with partners. 
• Enables research and development of new products or services, enhancing quality and better meeting customer demands. 
• Offers a chance to rebuild brand image and regain trust from customers and partners. 

Business suspension not only helps companies overcome challenges but also creates opportunities for sustainable growth in the future.

Frequently asked questions about business suspension services at TinLaw

During the process of suspending business operations, you may have various concerns and questions. Below, TinLaw has compiled common queries and detailed answers related to business suspension. Let’s explore!

What is business suspension?

Business suspension refers to the temporary cessation of a company’s production or commercial activities for a specified period. This process requires a written notification to the Business Registration Office, specifying the start date and duration of the suspension or resumption. The notification must be submitted at least three days before the suspension begins.

What are the conditions for applying for business suspension?

To apply for business suspension, companies must meet the following conditions:

• The company must complete suspension procedures for any branches, representative offices, or dependent business units before applying for the main entity;
• Submit a written notification to the Business Registration Office no later than three days before the intended suspension date;
• For companies whose tax codes have been deactivated, they must restore the tax code prior to applying for suspension. 
• During the suspension period, the company must fulfill its obligations, including paying debts and completing outstanding contracts with partners, clients, and employees. 
• Ensure all tax payments and other financial obligations are fully settled. 

Meeting all these conditions is essential for businesses to proceed with the suspension application.

How long can a business suspend operations?

A business can suspend operations for up to one year per instance. The total suspension period cannot exceed two years, but there is no limit to the number of suspension requests.

Should a business suspend operations or dissolve?

These two procedures have distinct legal consequences. The choice depends on whether the business plans to resume operations in the future. Business suspension is temporary, with the option to extend multiple times. Dissolution permanently ends the business’s existence.

Can a business in tax debt apply for suspension?

Yes, businesses with outstanding tax debt can still apply for suspension. However, they must ensure that all owed taxes are paid during the suspension period.

Is tax declaration required during business suspension?

A business is not required to file tax declarations during the suspension period. However, it must submit tax declarations for the quarter preceding the acceptance of the suspension application by the Business Registration Office.

Is business license tax payable during suspension?

If a business submits a notification to the tax authority for a full calendar year suspension, it is exempt from paying the business license tax for that year. If the suspension is not for a full calendar year, the business must pay the full annual business license tax.

Is tax reporting required during business suspension?

If no tax obligations arise during the suspension period, the business is not required to submit tax declarations for that time.

If the suspension does not cover a full calendar year or financial year, the business must submit VAT reports, quarterly invoice reports for active periods, and a full set of annual tax finalization documents.

Penalties for failing to notify business suspension?

For businesses:

• Failing to notify or notifying late about the suspension/resumption of operations to the Business Registration Office: VND 1–2 million. 
• Registering for business suspension but failing to notify the suspension of branches, representative offices, or business locations: VND 1–2 million. 
• Having the Business Registration Certificate revoked (for suspending operations for more than one year) without proper notification. 

For household businesses:

• Suspending operations without notification or with late notification (under six months): VND 500,000–1 million. 
• Ceasing operations for over six consecutive months without notification: VND 1–2 million. 
• Required to send a suspension notification to the Business Registration Office. 

Timely notification of business suspension not only helps businesses avoid penalties but also safeguards their rights and reputation.

Where to submit business suspension documents?

Once the suspension documents are prepared, businesses must submit them to the Business Registration Office under the Department of Planning and Investment of the province or city where the business is headquartered.

Conclusion

Business suspension offers an opportunity for companies to reassess their situation and plan for the future. TinLaw’s business suspension services make it easy for businesses to complete all procedures while avoiding legal risks. If you’re considering suspending operations, contact TinLaw for prompt assistance!