Temporary Suspension of Business: Do You Need to Cancel Your Business License? [Updated 2025]

Starting from July 1, 2025, businesses in Vietnam that do not have a VNeID electronic identification account will face significant challenges accessing public services and completing administrative procedures — including business suspension, dissolution, or changes in business registration.

In this context, a common question arises:

👉 If you want to temporarily suspend business operations, do you need to cancel your Business License?

👉 What is the correct procedure under the latest regulations?

This article provides a clear, up-to-date explanation!

Cancel Business License When Suspending Business?

1. Temporary Suspension of Business: Is it necessary to cancel your Business License?

The answer: NO.

• If your business is simply temporarily suspending operations for a specific period, you are NOT required to cancel your Business License.

• Only if you decide to permanently terminate operations will you need to carry out business dissolution procedures or officially cancel your registration in accordance with legal regulations.

  
  

2. Business Suspension Procedure (Without Canceling the License)

Legal Basis:

Under Article 66 of Decree 01/2021/NĐ-CP, businesses, branches, representative offices, and business locations are allowed to temporarily suspend operations without having their Business License revoked.

However, companies must notify the Business Registration Office at least 03 working days before the intended suspension date.

Required Documents:

• Notice of Business Suspension (following the prescribed form).

• Meeting Minutes and Suspension Decision:

  • For a multi-member LLC or a Partnership: Minutes + Decision of the Members' Council.

  • For a Joint Stock Company: Minutes + Decision of the Board of Directors.

  • For a single-member LLC: Decision of the Owner.

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Important Notes:

• The maximum suspension period for each submission is 01 year.

• You can extend the suspension by submitting another notification before the previous suspension period expires.

• During suspension, businesses must still fulfill tax obligations, settle debts, and honor any existing contracts (unless otherwise agreed).

  
  

3. Business Dissolution Procedure (When You Must Cancel Your Business License)

If a business intends to permanently cease operations, it must follow the official dissolution process.

For Enterprises:

• Fulfill all financial obligations: taxes, insurance, outstanding debts.

• Submit the dissolution application to the Business Registration Office.

• Announce the dissolution via the National Business Registration Portal.

For Household Businesses:

• File the Form 24/ĐK-TCT to deactivate the tax identification number.

• Submit a notification to terminate the business at the local District Business Registration Authority.

• Required documents include:

  • Notification of Business Termination,

  • Original Business License,

  • Confirmation of tax ID deactivation,

  • Meeting minutes (if applicable for multiple members).

4. Key Legal Reminders for Business Suspension

• Failing to notify the Business Registration Office properly can lead to administrative fines.

• Businesses remain responsible for any obligations during the suspension period.

• From July 1, 2025, companies must possess a valid VNeID account to complete suspension, dissolution, or registration procedures online.

Temporarily suspending business operations does NOT mean you must cancel your Business License immediately. However, businesses must strictly follow the correct legal procedures to protect their rights and avoid penalties. If the business no longer intends to resume activities, it is essential to proceed with the dissolution or official cancellation of the Business License according to the law.

Source: https://thuvienphapluat.vn/