Business Suspension from July 23, 2026: Consecutive Business Suspension Limited to 24 Months

Business suspension is a practical option for companies that need to temporarily pause operations while restructuring their business, reallocating resources, or waiting for more favorable market conditions. Effective from July 23, 2026, Vietnam’s regulations on the duration of business suspension introduce an important change that directly affects how businesses register and extend their suspension periods. Understanding these updated requirements will help enterprises plan ahead, remain compliant, and complete the necessary procedures correctly.

New Business Suspension Regulations Effective from July 23, 2026

Effective July 23, 2026, the Government issued Decree No. 296/2026/ND-CP, amending and supplementing several provisions of Decree No. 168/2025/ND-CP on enterprise registration. One of the most significant changes is the introduction of a limit on the total period during which a business may remain under consecutive suspension. Under the new regulation, if an enterprise, branch, or business location wishes to continue suspending its operations after the previously registered suspension period expires, it must submit an application to the provincial Business Registration Authority no later than three working days before the intended continuation date. This amendment provides a clearer legal framework for business registration authorities while improving the management and monitoring of enterprise operating status.

How Long Can a Business Suspend Its Operations?

The most important change under the new regulation is that the total consecutive business suspension period must not exceed 24 months. However, this does not mean that a business may register for a single 24-month suspension. Under the current regulations, each business suspension notification may still cover a maximum period of 12 months. Once that period expires, a business that wishes to continue suspending its operations must submit a new suspension notification in accordance with the prescribed procedures and deadlines. The combined duration of consecutive suspension periods must not exceed 24 months. Once this maximum period has been reached, the enterprise will no longer be eligible to continue registering for consecutive business suspension. In other words, the new regulation does not change the maximum duration of each individual suspension period. Instead, it introduces an overall cap on the total length of consecutive business suspension.

How the New Regulation Differs from the Previous Rules

Before July 23, 2026, Clause 1, Article 60 of Decree No. 168/2025/ND-CP only specified that each business suspension notification could not exceed 12 months. The previous regulation did not impose any limit on the total consecutive suspension period. As a result, businesses could continue filing additional suspension notifications as long as they complied with the required procedures. From July 23, 2026, Decree No. 296/2026/ND-CP introduces a new limitation by capping the total consecutive suspension period at 24 months. This represents a significant regulatory change that businesses should take into account when planning long-term operational adjustments.

Transitional Provisions for Businesses That Suspended Operations Before July 23, 2026

To ensure the consistent implementation of the new regulation, Decree No. 296/2026/ND-CP also sets out transitional provisions for enterprises that had already registered for business suspension before the decree took effect. If the total consecutive suspension period, calculated up to the end of the most recent suspension, has not yet exceeded 24 months, the enterprise may continue to register for another suspension period. However, the combined suspension periods before and after July 23, 2026 must still remain within the overall 24-month limit. Conversely, if the total consecutive suspension period has already exceeded 24 months, the enterprise will not be permitted to register for another suspension once its most recently approved suspension period expires. These transitional provisions ensure that the new rules are applied consistently while providing clear guidance for businesses already under suspension before the effective date.

Businesses Must Still Update Registration Information During the Suspension Period

Suspending business operations does not exempt an enterprise from fulfilling its obligations relating to enterprise registration. If any registered information changes during the suspension period—such as the company name, registered office address, legal representative, or other registration details—the enterprise must still complete the required registration or notification procedures in accordance with applicable regulations. Businesses should regularly review their legal registration information to ensure that all records remain accurate and up to date, helping to avoid administrative issues when operations resume.

Key Considerations for Businesses Under the New Regulation

The introduction of a maximum consecutive business suspension period will have a direct impact on companies planning to suspend their operations for an extended period. To remain compliant, businesses should carefully monitor the total consecutive suspension period, rather than focusing solely on the duration of each individual suspension registration. If an extension is required, the necessary application should be submitted within the prescribed deadline to avoid interruptions or procedural issues. In addition, enterprises should continue to fulfill all registration-related obligations whenever changes arise during the suspension period. Staying informed of the latest regulations and planning ahead will help businesses remain compliant while ensuring a smoother transition when they resume operations.

Conclusion

Business suspension regulations effective from July 23, 2026 introduce a new limit of 24 consecutive months for business suspension. Enterprises should familiarize themselves with these updated requirements to ensure full compliance, develop appropriate operational plans, and minimize legal risks. If you need professional assistance with business registration or other corporate compliance procedures in Vietnam, Green NRJ is ready to provide timely and reliable support.