DOES ENTERPRISES BE TEMPORARILY SUSPENDED BUSINESS BY THE EFFECTS OF COVID 19?

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Since the beginning of 2020, the Covid 19 epidemic has been complicated and unpredictable, the State has had to implement many isolation policies that greatly affected businesses, and many businesses had to “hibernate”. So, can businesses suspend business operations due to the effects of the Covid 19 disease? The answer is yes”.
According to Article 200 of the 2014 Law on Enterprises and current guiding documents providing for business suspension as follows:
– Enterprises have the right to suspend their business but must notify in writing the time and duration of suspending or resuming business to the Business Registration Authority at least 15 days before the date of suspending or resuming business. This provision applies in case the enterprise resumes its business before the notified time limit. As follows:
+ If the enterprise, branch or representative office suspends its business before the deadline, the enterprise shall send a notification to the business registration office where the enterprise, branch or representative office has registered within 15 days at the latest. before suspending business.
+ In case the enterprise suspends business before the deadline, the notice must include the decision and meeting minutes of the Board of members, for the limited liability company with two or more members and of the company’s owner. for one-member limited liability companies, of the General Meeting of Shareholders for joint-stock companies, of general partners and partnerships.
Term of temporary suspension of operation
The duration of temporary cessation of operations for an enterprise is prescribed in Clause 2, Article 57 of Decree 78/2015 / ND-CP, whereby an enterprise may suspend its business for no more than one year. After the expiry of the notified time limit, if the enterprise continues to suspend its business, it must notify the Business Registration Office. The total duration of continuous business suspension must not exceed two years.
Procedures for suspension of business
At least 15 days before suspending business, enterprises must carry out procedures for business suspension as follows:
Step 1: Prepare documents including:
– Notice of business suspension (Annex II-21 of Circular No. 02/2019);
– Decision and a valid copy of the meeting minutes of the Members’ Council for limited liability companies with two or more members, of the company owner, for the one member limited liability company, of the Association. co-management of joint-stock companies, of general partners and partnerships;
– For enterprises that are granted investment licenses, investment certificates or papers of equivalent legal validity, apart from the above papers, enterprises shall enclose:
+ Valid copy of Investment Certificate;
+ Valid copy of tax registration certificate;
+ Request for supplementing and updating business registration information (Appendix II-18 Circular No. 02/2019).
Step 2: The founder of the business or an authorized representative submits the complete application file to the Business Registration Office where the enterprise is headquartered in the local Province / City.
Step 3: Within 03 working days from the day on which the valid application is received, the Business Registration Office issues a certificate of business suspension registration (Clause 4, Article 57 of Decree No. 78 / 2015).

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