PROCEDURES FOR ENTERPRISE SUSPENSION BECAUSE OF COVID-19

Currently, due to the effect of the Covid-19 epidemic, business and production activities are facing many difficulties, a number of enterprises are forced to suspend or narrow their production, especially restaurant, traveling, ……

In addition, the Government requires to close all businesses except essential goods, restricting crowds, and people are not allowed to go out when it is not needed, so all areas of the social life are negatively affected.

(You can learn more about the new Prime Minister’s directive in this article:

http://hankuklawfirm.com/implementation-of-social-isolation-for-15-days-from-april-1st-2020/)

Instead of choosing to dissolve an enterprise, enterprise suspension will only terminate the operation of the enterprise for a certain period of time, upon the expiry of the suspension period, the enterprise will return to normal operation. .

HANKUK LAW FIRM provides affordable enterprise suspension registration services along with a professional team of consultants.

I. Procedures for enterprise suspension registration

Step 1: The enterprise prepares a dossier and submits it to the business registration office where it is headquartered.

The composition of a dossier includes:

– Competent government authorities: Business registration office – Department of Planning and Investment

– Handling time: 03 working days

Step 2: Enterprises receive business suspension confirmation directly or register to receive via post

According to Clause 4, Article 57 of Decree No. 78/2015, within 03 working days from the date of receipt of a valid application, the Business Registration Office shall issue a certificate of the suspension of business registration.

Note: Enterprises have the right to suspend business but must notify in writing the time and duration of suspending or resuming business to the Business Registration Office at least 15 days before the date of suspending or resuming business.

II. License tax, VAT, PIT, CIT, Financial statement

1.License tax

1.1. If the enterprise suspends business for the whole year, they do not have to pay license tax

1.2. If the enterprise is not suspended for the whole year, it is still required to pay license tax.

2.VAT, PIT, CIT declaration

During the period of business suspension, enterprises do not need to submit VAT, PIT, CIT declarations quarterly or monthly

3.Financial statements, PIT tax finalization

3.1. If the enterprise suspends business in the full fiscal year, it is not required to submit the tax finalization dossier and financial statement at the end of the year.

3.2. If the business does not suspend for the full fiscal year, it still has to submit a tax finalization dossier and a year-end financial report.