Business suspension: procedures, time limits and tax obligations
Business suspension procedure for companies in Vietnam: notice deadline, length of each suspension, tax obligations and how to resume operations.
When business is difficult or a company needs time to restructure, business suspension lets it reduce administrative obligations without dissolving.
Key milestones in a business suspension
- 03 working days beforeNotify the suspension
- Each noticeSuspension of up to 1 year
- During the suspensionNo tax returns for periods fully covered by the suspension
- Early resumptionNotify 03 working days in advance
Notify the suspension
Under Article 206 of the Law on Enterprises, a company must notify the business registration authority in writing at least 03 working days before the suspension begins. Each notice may cover a suspension of no more than one year; when it expires, the company may file another notice to continue the suspension.
What Does the Dossier Include?
- Notice of business suspension in the prescribed form.
- Resolution, decision and meeting minutes of the owner, the Members' Council or the General Meeting of Shareholders (depending on the company type).
Tax Obligations During Suspension
During the suspension, a company does not need to file tax returns for months or quarters that are fully covered. If the suspension does not cover a full month, quarter or year, the company must still file monthly or quarterly tax returns and the annual finalisation dossier. A company may not use invoices during the suspension.
Outstanding taxes and amounts payable under tax authority decisions must still be settled. The company must also keep performing contracts signed with clients and employees unless otherwise agreed.
Resuming Operations
When the suspension period ends, the company resumes operations automatically. To resume early, it must notify the business registration authority at least 03 working days before the date it continues business.
Suspend or Dissolve?
If there is no further business plan, keeping a company suspended for years still creates finalisation and reporting obligations. In that case, dissolving the company is a safe way to close it. HDS Law lawyers will compare both options based on your actual situation.
Content reviewed by Lawyer Đoàn Minh Đức (Director – Managing Lawyer); updated 15 Sep 2026.
This article is for reference only, based on regulations as of the update date. For advice on your specific case, please contact a lawyer.
