Temporary business suspension is when an enterprise temporarily ceases business operations for a certain period. From July 23, 2026, regulations on temporary business suspension will have some notable new points, especially that the total continuous temporary business suspension period must not exceed 24 months.
If an enterprise needs to temporarily suspend business, it must prepare the correct dossier, notify within the deadline, and fulfill related tax and financial obligations to limit legal risks.
Quick Summary:
- Each temporary business suspension: not exceeding 12 months.
- Total continuous temporary suspension period: not exceeding 24 months.
- Must notify the provincial Business Registration Authority at least 03 working days before the suspension date.
- Processing time for valid dossiers: 01 working day.
- After the suspension period ends, the legal representative must confirm the resumption of business within 05 working days.
1. What is Temporary Business Suspension?
Temporary business suspension is when an enterprise temporarily ceases production and business activities for the period notified to the Business Registration Authority.
During the suspension period, the enterprise is not allowed to unilaterally conduct new business activities but must still fulfill certain legal, financial, and obligations towards employees, customers, and partners as prescribed.
Regulations on temporary business suspension procedures are currently implemented according to Law on Enterprises of Vietnam 2020, Decree 168/2025/ND-CP, and amending and supplementing regulations in Decree 296/2026/ND-CP.
2. Duration of Temporary Business Suspension in 2026
From July 23, 2026, enterprises need to pay special attention to the new limits on the duration of temporary business suspension.
2.1. Each Temporary Business Suspension Maximum 12 Months
Enterprises must notify of temporary business suspension before the start date of the suspension. The duration of each suspension notification must not exceed 12 months.
If, after the notified period expires, the enterprise still wishes to continue the suspension, it must notify of the continued suspension as prescribed and submit the dossier at least 03 working days before the date of continued suspension.
2.2. Total Continuous Temporary Suspension Period Maximum 24 Months
This is one of the important new points applied from July 23, 2026.
The total continuous temporary business suspension period for an enterprise must not exceed 24 months. Enterprises should not interpret this regulation as being allowed to register for a single 24-month suspension; each notification is still limited to a maximum of 12 months.
Example: An enterprise registers for a 12-month temporary suspension for the first time. Nearing the end of this period, the enterprise can register for another 12 months for the second time if conditions are met, but the total continuous temporary suspension period must not exceed 24 months.
2.3. Enterprises Suspended Before July 23, 2026
Transitional provisions in Decree 296/2026/ND-CP apply to enterprises that notified of suspension before July 23, 2026.
- If the total continuous temporary suspension period up to the end of the most recent term has not exceeded 24 months, the enterprise may continue to register for suspension but must ensure that the total period, including the period registered before July 23, 2026, does not exceed 24 months.
- If the total continuous temporary suspension period has exceeded 24 months, the enterprise is not allowed to continue registering for suspension after the most recent term ends.
2.4. What to Do After the Temporary Suspension Period Ends?
From July 23, 2026, within 05 working days from the end of the temporary suspension period, the legal representative of the enterprise must confirm the resumption of business and commit to having fully fulfilled enterprise registration obligations as prescribed on the National Enterprise Registration Information System.
If the confirmation is not made within the deadline, the provincial Business Registration Authority may require the enterprise to report as prescribed and coordinate with the tax authority to manage the enterprise.
3. What Does the Temporary Business Suspension Dossier for 2026 Include?
The dossier for notifying temporary business suspension generally includes the following documents:
- Notification of Temporary Business Suspension according to Form No. 27 issued with Circular 121/2026/TT-BTC.
- Resolution or decision on temporary business suspension by the competent authority within the enterprise.
- Power of attorney if the person carrying out the procedure is not the legal representative.
Resolution or decision on suspension by enterprise type:
- Single-member Limited Liability Company: Decision of the company owner.
- Limited Liability Company with two or more members: Resolution or decision of the Members’ Council.
- Partnership Company: Resolution or decision of the Members’ Council.
- Joint Stock Company: Resolution or decision of the Board of Directors.
4. Procedures for Temporary Business Suspension in 2026
Step 1: Determine the Suspension Period
The enterprise determines the start date and duration of the suspension. Each notification must not exceed 12 months, and the total continuous suspension period must not exceed 24 months.
Step 2: Prepare the Dossier
Prepare the temporary business suspension notification along with the resolution or decision of the owner/competent authority and power of attorney, if any.
Step 3: Submit the Dossier
Enterprises can carry out the procedures using methods prescribed by law, including:
- Direct submission at the provincial Business Registration Authority;
- Submission via postal service;
- Online submission via the National Business Registration Portal.
The dossier must be submitted at least 03 working days before the enterprise begins its temporary business suspension.
Step 4: Business Registration Authority Processes the Dossier
Within 01 working day from the date of receiving the dossier, the provincial Business Registration Authority reviews its validity and issues a confirmation of the enterprise’s temporary business suspension notification.
If the dossier is not valid, the business registration authority will notify the required amendments and additions.
Step 5: Fulfill Obligations During the Suspension Period
After being recorded as suspended, the enterprise still needs to monitor tax obligations, financial reports, debts, and other asset obligations to ensure legal compliance.
5. Does Temporary Business Suspension Require Tax Payment?
5.1. Are Tax Declarations Required During Temporary Suspension?
According to the guidance in this dossier, enterprises are not required to submit tax declarations during temporary business suspension.
However, enterprises must still complete tax declarations for the month or quarter before the temporary suspension is approved by the business registration authority.
5.2. Is Business License Tax (Lệ phí môn bài) Required During Temporary Suspension?
From 2026, the business license tax (lệ phí môn bài) has been abolished. Therefore, when an enterprise temporarily suspends business from 2026 onwards, there is no longer an obligation to pay business license tax.
5.3. Are Financial Reports Required During Temporary Suspension?
Enterprises must still fulfill the obligation to prepare and submit annual financial reports if the suspension period does not cover the entire calendar year or fiscal year, as applicable.
6. Important Notes When Temporarily Suspending Business
- Do not miss the notification deadline: The dossier must be submitted at least 03 working days before the start date of the suspension.
- Cannot register for more than 12 months at once: If you wish to continue the suspension, a subsequent notification must be made.
- Total continuous temporary suspension period must not exceed 24 months.
- Must confirm business resumption: To be done within 05 working days from the end of the suspension period.
- Suspension does not mean dissolution: The enterprise still legally exists and must fulfill outstanding obligations.
- Still must settle debts and asset obligations towards state agencies, customers, partners, and employees, unless otherwise agreed by the parties.
- Suspension does not negate the obligation to register changes: If during the suspension period, there arises a need to register or notify changes in enterprise registration content, the enterprise must still comply with regulations.
7. How Does Temporary Business Suspension Differ from Enterprise Dissolution?
| Criteria | Temporary Business Suspension | Enterprise Dissolution |
|---|---|---|
| Enterprise Status | Enterprise temporarily ceases operations | Termination of enterprise’s existence |
| Ability to Resume Operations | Can resume business | Does not resume operations as the dissolved legal entity |
| Duration | Maximum 12 months each time; maximum 24 months continuously | Carries out procedures to terminate operations as prescribed |
| Purpose | Temporarily cease business | Terminate operations and settle related obligations |
8. Temporary Business Suspension Services at VN Law Firm
If an enterprise does not wish to carry out the procedures themselves, VN Law Firm provides temporary business suspension notification services, supporting enterprises from consultation, dossier preparation to result tracking.
The service process includes:
- Legal consultation: Answering questions about conditions, duration, and obligations to be fulfilled during suspension.
- Dossier preparation: Preparing notifications and resolutions/decisions according to the correct enterprise type.
- Representative submission: Assisting with procedures and tracking dossier status.
- Handling arising issues: Supporting amendments and additions to the dossier if required by the business registration authority.
- Result handover: Receiving and handing over the temporary business suspension confirmation to the client.
- Post-procedure support: Advising on tax, insurance, and other obligations to note during the suspension period.
Information clients need to provide when using the service:
- Expected temporary business suspension period;
- Enterprise registration certificate or tax code;
- ID card of the legal representative;
- Phone number and email of the legal representative.
9. Frequently Asked Questions about Temporary Business Suspension in 2026
What is the maximum duration an enterprise can temporarily suspend business?
Each temporary business suspension notification must not exceed 12 months. The total continuous temporary business suspension period must not exceed 24 months.
Can an enterprise temporarily suspend business for 24 months in one go?
No. An enterprise can only notify a maximum of 12 months for each suspension. If it wishes to continue the suspension, it must make a subsequent notification and ensure that the total continuous temporary suspension period does not exceed 24 months.
How many days in advance must temporary business suspension be notified?
Enterprises must submit the notification dossier to the provincial Business Registration Authority at least 03 working days before the temporary business suspension date.
Are tax declarations required during temporary business suspension?
During the suspension period, enterprises are not required to submit tax declarations as applicable. However, enterprises must still complete declaration obligations for the period before the suspension.
Are there any procedures to follow after the temporary business suspension period ends?
Yes. For enterprises subject to the new regulations from July 23, 2026, within 05 working days from the end of the temporary suspension period, the legal representative must confirm the resumption of business and commit to having fully fulfilled enterprise registration obligations.
Can an enterprise with tax debts temporarily suspend business?
Temporary business suspension does not terminate outstanding financial obligations. Enterprises must still fulfill the obligation to pay taxes and asset obligations as prescribed.
Does temporary business suspension mean enterprise dissolution?
No. Temporary business suspension is merely when an enterprise temporarily ceases operations for a specified period; the enterprise still exists and can resume business when meeting relevant regulations.
The procedures for temporary business suspension in 2026 are relatively simple, but enterprises need to pay special attention to the new regulations effective from July 23, 2026. Among these, the most important are that each suspension must not exceed 12 months, the total continuous suspension period must not exceed 24 months, and business resumption must be confirmed within 05 working days after the suspension period ends.
Preparing the correct dossier and complying with deadlines will help enterprises limit requests for dossier amendments or additions and avoid risks arising during enterprise management.
If you need assistance with temporary business suspension procedures, enterprises can contact VN Law Firm for consultation and dossier support.
