Investment Project Suspension Services
Our legal solution helps foreign investors temporarily suspend project operations to preserve capital and gain time for strategic restructuring. We handle the full procedure on your behalf with the investment registration authority, tax authority, and social insurance authority, ensuring that no legal risks arise during the suspension period.
- Free consultation on conditions for land rent exemption or reduction
- Drafting of suspension resolutions and decisions in accordance with regulations
- Notification to the investment registration authority and tax authority on your behalf
- Support for labor and social insurance arrangements
- Advisory on early resumption of project operations
What Do You Receive from MGI Consulting’s Project Suspension Service?
We provide a comprehensive legal solution that helps businesses optimize operating costs and ensure legal safety during the suspension period.
Legal Consultation and Dossier Assessment — Free
We review the current legal status of the project and advise on the most appropriate timing for suspension to optimize tax obligations and other payable amounts. We also advise on handling labor contracts and outstanding debts.
Suspension Dossier Preparation and Standardization
We prepare the complete legal dossier, including the suspension notice, Form A.I.13, decisions, and meeting minutes of the owner or Members’ Council. We ensure that the reason for suspension is presented properly and in compliance with the law.
Cross-Authority Procedure Representation
We carry out the notification procedure with three authorities at the same time: the investment registration authority, such as the Department of Finance or Industrial Park Management Board, the tax authority, and the social insurance authority where required. This helps synchronize the suspension status across the national data system.
Result Handover and Deadline Monitoring
We hand over the written confirmation or approval of project suspension issued by the competent authority. MGI Consulting also sets up a monitoring system to notify clients before the suspension period expires, helping them proactively prepare for an extension or resume operations.
MGI Consulting’s 6-Step Process for Project Suspension Services
Step 1: Requirement Intake and Obligation Review
We review the company’s tax status and investment reporting obligations. The company must complete any outstanding tax liabilities, if any, before applying for project suspension.
Step 2: Legal Dossier Preparation
We prepare internal decisions and the official suspension notice in accordance with the Law on Investment and the Law on Enterprises.
Step 3: Application Submission to the Investment Registration Authority
We submit the dossier on your behalf at least 5 working days before the expected suspension date, in line with the statutory deadline to avoid penalties.
Step 4: Notification to the Tax Authority
We carry out the business suspension notification procedure with the directly managing tax authority, allowing the company to be exempt from tax filing obligations during the suspension period where accepted.
Step 5: Result Collection and Handover
We receive the authority’s written confirmation of project suspension and hand over the result to the client.
Step 6: Post-Service Support
We advise on necessary procedures for maintaining machinery, factories, or facilities where applicable, as well as important notes to avoid land recovery risks during the suspension period.
Frequently Asked Questions About Investment Project Suspension
Q1: What is the maximum suspension period for an investment project?
Under current regulations, the total suspension period of an investment project must not exceed 12 months. After this period expires, the investor must either resume operations or carry out the procedure for terminating the project.
Q2: During the suspension period, do I still need to submit tax reports?
If the company has completed the suspension notification procedure with the tax authority and received approval, the company is not required to submit tax declaration dossiers during the suspension period.
Please note that the company must still submit the financial statements for the fiscal year up to the suspension date if the suspension period does not cover the entire calendar year.
Q3: Can I be exempt from land rent during project suspension?
Land rent exemption or reduction is only considered in cases where the suspension is caused by force majeure events, such as natural disasters, epidemics, fires, or similar circumstances, and must be confirmed by the competent state authority. Ordinary business losses are generally not accepted as a basis for land rent exemption.
Q4: Do I need to notify employees?
Yes. Project suspension directly affects employment. The investor must reach an agreement with employees on temporarily suspending the performance of labor contracts or terminating labor contracts in accordance with the Labor Code.
Q5: Can I resume operations earlier than the registered suspension period?
Yes. Investors have the right to resume operations before the registered suspension period expires. However, you must submit written notices to the investment registration authority and the tax authority before officially resuming operations.
Q6: Can I simply close the project without notifying any authority?
Absolutely not. This is a violation of the law.
From an investment perspective, you may be fined and may face the risk of permanent revocation of the investment license.
From a tax perspective, the company may be classified as having abandoned its registered business address, resulting in the tax code being locked. The legal representative may also face restrictions on exiting Vietnam or establishing a new company.