Procedures for dissolution of companies and enterprises

🔖 What is corporate dissolution?

🔰 Enterprise dissolution is one of the procedures specified in the Enterprise Law for enterprises to withdraw from the market. The dissolution of an enterprise not only arise to relations between members within the enterprise but also the relationship between the enterprise and other entities, including customers, partners, employees in the enterprise and state management agencies. These are relations related to property and related to state management activities.

🔰 The dissolution is only considered completed if the enterprise has finished dealing with all the above-mentioned entities. Therefore, the dissolution of an enterprise must follow certain procedures.

🔰 According to the Enterprise Law 2020, an enterprise may dissolve in the following cases:

➤ Voluntary dissolution: According to the decision of the business owner or when the enterprise does not have a decision to extend the operation term stated in the charter.

➤ Compulsory dissolution: If the company does not have enough members for 6 consecutive months or has its business license revoked.

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🔖 Enterprise dissolution procedure:

In case of voluntary dissolution:

👉 Step 1: Approving the decision to dissolve the company

➥ To be able to proceed with the dissolution of the enterprise, the enterprise must first hold a meeting to approve the dissolution decision. Accordingly, the dissolution must be approved by the owner for a one-member limited liability company, by the Members' Council for a limited liability company with two or more members, by the General Meeting of Shareholders for joint-stock companies and by general partners for partnerships.

 ➥ An enterprise dissolution decision must contain the following principal contents:

 • Name and address of the head office of the enterprise;

• Reason for dissolution;

• Deadline and procedures for contract liquidation and payment of debts of the enterprise; the deadline for debt payment and contract liquidation must not exceed 06 months from the date of approval of the dissolution decision;

• The plan to handle obligations arising from the labor contract;

• Full name, signature of the legal representative of the enterprise.

👉 Step 2: Public announcement of dissolution decision

➥ The enterprise must notify the persons with rights and interests related about the dissolution decision. In case the enterprise has unpaid financial obligations, it must enclose the decision on dissolution of the debt settlement plan to its creditors and persons with related interests and obligations. The notice must contain the name and address of the creditor; debt amount, term, location and method of payment of such debt; method and deadline for settling the creditor's complaint.

👉 Step 3: Liquidate assets and pay debts of the company

➥ The enterprise's debts are paid in the following order:

• Debts of salary, severance allowance, social insurance as prescribed by law and other benefits of employees under the collective labor agreement and signed labor contract;

• Tax debt;

• Other debts.

➥ After all debts and business dissolution costs have been paid, the rest belongs to private business owners, members, shareholders or company owners.

➥ The payment of debts is very complicated because it is necessary to prescribe an appropriate order to ensure the rights and interests of the people involved.

👉 Step 4: Submit dissolution application

👉 Step 5: Update the legal status of the business in the National Business Registration Database

 ➥ Within 05 working days from the date of receipt of the dissolution dossier, the business registration agency shall update the legal status of the enterprise in the national enterprise registration databa

In case of compulsory dissolution:

👉 Step 1: The business registration authority shall notify the status of the enterprise undergoing dissolution procedures on the National Business Registration Portal.

➥ The business registration authority must notify the status of the enterprise undergoing dissolution procedures on the National Business Registration Portal at the same time as issuing a decision to revoke the Certificate of Business Registration or immediately after when receiving the effective dissolution decision of the Court. Attached to the notice must also be posted the decision to revoke the Certificate of Business Registration or the decision of the Court.

👉 Step 2: Make a decision on dissolution and send this decision to the business registration agency, tax agency, employees in the enterprise and make this decision public.

👉 Step 3: Organize asset liquidation and debt payment

👉 Step 4: Submit a request for dissolution of the enterprise

👉 Step 5: The business registration authority updates the legal status of the enterprise in the National Business Registration Database.

🔖 Dissolution records include:

🔗 Notice of dissolution of the enterprise;

🔗 Report on liquidation of corporate assets; a list of creditors and paid debts, including payment of tax debts and social insurance premiums, and employees after the decision to dissolve the enterprise (if any);

🔗 Seal and seal sample certificate (if any);

🔗 Certificate of business registration.

🔖 When using TASCO's business dissolution service, entrepreneurs will receive:

✔ Free consultation on related issues.

✔ Work and deliver results to business people.

✔ No need to prepare documents and records.

✔ On behalf of entrepreneur, submit documents at the Department of Planning and Investment and carry out other related procedures.

✔ Commitment does not arise costs.

✔ Quick completion time.

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🔖  Why should business people use TASCO's service?

 Ready to take responsibility if the mistake belongs to TASCO.

2️⃣ Commitment to package costs and no additional costs.

3️⃣ Free consultation support before and after completion 24/7.

4️⃣ TASCO is responsible for explaining and interpreting tax accounting records when state agencies have requests for accounting data to be made.

5️⃣ TASCO is always committed and responsible for keeping your accounting information confidential, even after the contract to provide accounting services has been terminated.

6️⃣ TASCO is always committed and responsible for keeping your accounting information confidential, even after the contract to provide accounting services has been terminated.

✳️ TASCO Tax Agent is proud to be founded and led by CEOs who are experts in Finance - Accounting - Tax with more than 17 years of practical experience and a team of professional, dedicated, highly professional, and constantly updated knowledge regularly. With the management policy "WHOLE-HEARTED - RESPONSIBILITY - PROFESSIONAL", TASCO is committed to providing customers with the best service quality and the most dedicated support.

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