Dissolution upon revocation of the Certificate of Enterprise Registration or under court decision in Vietnam

Dissolution upon revocation of the Certificate of Enterprise Registration or under court decision in Vietnam - Illustrative image.

According to the provisions of Article 209 Enterprise Law 2020, the dissolution of an enterprise in case of revocation of the Business Registration Certificate (BRC) or by Court decision is carried out in the following sequence and procedure:

1. The business registration authority must announce the status of the enterprise undergoing dissolution procedures on the national business registration portal concurrently with the issuance of the revocation decision of the BRC or immediately after receiving the valid court dissolution decision.

The announcement must include the revocation decision of the BRC or the valid court decision.

2. Within 10 days from the date of receiving the revocation decision of the BRC or the valid court decision, the enterprise must convene a meeting to decide on dissolution.

The resolution, dissolution decision, and a copy of the revocation decision of the BRC or valid court decision must be sent to the business registration authority, tax authority, employees in the enterprise and must be publicly posted at the enterprise's head office, branches, and representative offices.

If the law requires a public announcement in newspapers, the dissolution resolution, and decision must be published in at least one print or electronic newspaper in three consecutive issues.

If the enterprise has outstanding financial obligations, the dissolution resolution and decision must be accompanied by a debt settlement plan sent to creditors and other parties with related rights and obligations. The notice must include the creditor's name, address, the amount of debt, duration, location and method of payment, and means and deadline for resolving creditors' complaints.

3. The payment of the enterprise's debts is carried out according to the provisions of the Enterprise Law 2020.

4. The legal representative of the enterprise must submit dissolution dossiers to the business registration authority within 05 working days from the date of settling all enterprise debts.

5. After 180 days from the announcement date of the state of undergoing dissolution procedures, according to Clause 1 of this Article, without any written objections from related parties, or within 05 working days from the receipt of the dissolution dossier:

The business registration authority updates the legal status of the enterprise on the national business registration database.

6. The managers of the company involved must bear personal responsibility for damages due to non-compliance or improper compliance with the law.

Detailed text at Enterprise Law 2020, effective January 1, 2020.

Le Vy

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