Consultation on business suspension and resumption

1. What is Business Suspension?

Business suspension is the right of an enterprise when it wishes to temporarily stop its production and business operations for a specific period due to business strategy changes or corporate restructuring.

The main advantage of this procedure is that the enterprise maintains its legal personality without undergoing dissolution, saving costs and time when returning to the market.

Pursuant to Article 206 of the Law on Enterprises 2020, an enterprise has the right to suspend its business operations but must send a written notification to the business registration authority at least 03 working days before the suspension date.

2. Benefits of Business Suspension for Enterprises

When engaging in business suspension, enterprises enjoy the following benefits:

Suspension of Tax Obligations: Enterprises are not required to submit tax declaration documents during the suspension period, reducing administrative accounting burdens and late-filing risks.

Retention of Tax Identification Number and Company Name: Maintaining the complete operating history of the enterprise, as well as assets or licenses under the enterprise’s name.

Maintenance of Operating History: Helping the enterprise preserve its legal seniority, an essential factor when participating in biddings or proving capacity to partners upon resumption.

3. Regulations on Duration and Obligations During Business Suspension

Duration: According to the latest regulations under Decree 296/2026/ND-CP, an enterprise may notify business suspension multiple times, provided that each notified suspension period does not exceed 12 months. However, the enterprise is restricted to a maximum total consecutive suspension period of 24 months.
Upon the expiry of the suspension period, the enterprise must submit a notification to the Business Registration Office confirming its resumption of business. Within 10 working days from the expiration date of the aforementioned confirmation request period, the provincial-level business registration authority shall send a written request to the enterprise to submit reports in accordance with Point c Clause 1 Article 216 of the Law on Enterprises, and simultaneously send the same to the tax administration authority for coordinated state administration. If the enterprise fails to send reports to the provincial-level business registration authority within 06 months from the deadline for sending reports, the provincial-level business registration authority shall revoke the Enterprise Registration Certificate in accordance with the order and procedures specified in Article 69 of Decree 168/2025/ND-CP. The enterprise must carry out dissolution procedures in accordance with Article 65 of Decree 168/2025/ND-CP.
Financial Obligations: During the suspension period, the enterprise shall fully pay unpaid taxes and social insurance premiums, continue paying debts, and fulfill contracts signed with clients and employees, unless otherwise agreed.
Tax Obligations: If the business suspension covers a full calendar year or fiscal year, the enterprise is exempt from submitting tax declaration documents and paying license fees for that year.

4. Procedures for Resumption of Business Ahead of Schedule

An enterprise undergoing business suspension may resume its business operations at any time upon request. In this case, the enterprise must follow the procedure for notification of resumption of business ahead of schedule.

Notification Deadline: At least 03 working days before the planned date of resumption.
Benefits: Enables the enterprise to quickly seize market opportunities, restoring its tax identification number and legal business rights immediately.

5. Procedures and process for business suspension and resumption

Pursuant to Decree 168/2025/ND-CP, a notification documents for business suspension or resumption of business ahead of schedule includes:

Notice of business suspension/ Notice of resumption of business ahead of schedule: Drafted according to prescribed forms.
Resolution/Decision and Meeting Minutes: Issued by the Company Owner / Board of Members / General Meeting of Shareholders regarding the business suspension or resumption.

Execution Process:

Step 1: Receiving requests and analyzing appropriate solutions suited to Clients’ needs.
Step 2: Drafting notification documents and carrying out procedures with the Business Registration Office.
Step 3: Receiving the Certificate of business suspension or resumption of business ahead of schedule within 03 working days.

6. Why Choose Services at Simple Law?

Consultation and Review: Checking tax status and insurance liabilities prior to suspension to prevent tax code locking.
Documents Optimization: Full-package drafting, 100% compliant with current regulations.
Time Savings: Authorized representation for submitting documents and delivering results directly to your door within 03 to 05 working days.