Obligations during the suspension period
Legal obligations businesses must fulfill during a period of temporary suspension of operations.
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During periods of temporary suspension of operations, businesses still have certain legal obligations to fulfill. Compliance with these obligations helps to ensure business success.
Step 1: Make the decision to temporarily suspend operations.
The business decides to temporarily suspend operations in accordance with its charter or internal regulations.
- Limited Liability Companies, Joint Stock Companies: Hold Board of Directors/General Meeting of Shareholders and issue Resolutions
- Private enterprise: The business owner makes the decisions.
Treatment time: 1-3 days
Step 1: Make the decision to temporarily suspend operations.
The business decides to temporarily suspend operations in accordance with its charter or internal regulations.
- Limited Liability Companies, Joint Stock Companies: Hold Board of Directors/General Meeting of Shareholders and issue Resolutions
- Private enterprise: The business owner makes the decisions.
Treatment time: 1-3 days
Step 1: Make the decision to temporarily suspend operations.
The business decides to temporarily suspend operations in accordance with its charter or internal regulations.
- Limited Liability Companies, Joint Stock Companies: Hold Board of Directors/General Meeting of Shareholders and issue Resolutions
- Private enterprise: The business owner makes the decisions.
Treatment time: 1-3 days
1. Tax obligations during temporary suspension
Note: During the period of temporary suspension of operations, businesses are still required to submit periodic tax reports with a "no transactions" status as stipulated by the Tax Administration Law.
2. Social Insurance and Health Insurance Obligations
Note: Before temporarily suspending operations, businesses must settle all outstanding social insurance and health insurance contributions to avoid legal obligations and ensure the rights of employees.
3. Obligation to submit periodic reports
Despite temporarily suspending operations, the business still Periodic reports must be submitted. According to legal regulations, including:
- Annual financial reportSubmit to tax authority and business registration agency as per regulations.
- Report on employment situationThis applies if the business has employees.
- Statistical reportTo fulfill the request of State Statistics Agency.
- Periodic tax reportingEven if no revenue or expenses are generated, businesses must still file tax reports with that status. “"no occurrences"”.
Note: Failure to submit periodic reports or submitting them late may result in administrative penalties as prescribed by law.
4. Responsibilities towards employees
During the period of temporary suspension of operations, the business is still responsible for ensuring the rights of employees in accordance with labor laws:
Temporary suspension of employment contract.
Businesses and employees may agree to temporarily suspend the employment contract during the suspension period. During this time, salary payments and related benefits will be made according to the agreement or legal regulations.
Termination of employment contract
If a business is forced to terminate an employment contract due to objective reasons related to temporary suspension of operations, the business must fully fulfill all rights of the employee, including prior notice, payment of severance pay, insurance, and other benefits.
Note: Failure to properly fulfill responsibilities towards employees may lead to labor disputes and legal consequences.
