What is summary of 07 enterprise’s legal status in 2024 in Vietnam?

What is summary of 07 enterprise’s legal status in 2024 in Vietnam?

Pursuant to Article 41 of Decree 01/2021/ND-CP regulating the enterprise’s legal status:

Enterprise’s legal status

The enterprise’s legal status on the National Enterprise Registration Database includes:

1. “business suspension” means the enterprise’s legal status during its business suspension as prescribed in Clause 1 Article 206 of the Law on enterprises. Starting date of “business suspension” status is the date of business suspension registered by the enterprise. Ending date of “business suspension” status is the ending date of business suspension period as notified by the enterprise or the date of resumption of business ahead of schedule registered by the enterprise.

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According to this Article, there are 07 enterprise’s legal status in the National Enterprise Registration Database including:

[1] Business suspension

Business suspension status is the status of an enterprise that is in the process of suspending business.

During the temporary suspension of business, the enterprise still exists but is not allowed to conduct business activities and must fulfill its obligations.

[2] Not operate at registered address

The state of not operate at registered address of the enterprise is a situation in which, through inspection and verification by the Tax Administration and relevant units, the enterprise cannot be found at the registered address.

[3] Revocation of enterprise registration certificate due to tax decision enforcement

The situation of having the Enterprise Registration Certificate revoked due to tax administration enforcement is the situation of an enterprise when the Business Registration Office issues a decision to revoke the Enterprise Registration Certificate at the request of the tax agency on implementing measures to enforce administrative decisions on tax administration.

[4] Undergoing dissolution, fully or partially divided, consolidated or merged

The status of undergoing dissolution, fully or partially divided, consolidated or merged is the status of an enterprise when the enterprise has a resolution or decision to dissolve.

[5] Undergoing bankruptcy proceedings

The status of undergoing bankruptcy proceedings is the status of an enterprise when it has completed dissolution procedures and has been updated by the Business Registration Office with its legal status as being under bankruptcy procedures.

[6] Dissolved, bankrupt or cease to exist

The status of dissolved, bankrupt or cease to exist is the status of an enterprise when it has completed dissolution procedures and has been updated by the Business Registration Office with its legal status as dissolved, bankrupt, or terminated. 

[7] Operating

The operating status of an enterprise is the legal status of an enterprise that has been granted an Enterprise Registration Certificate and has not been terminated.

What is summary of 07 enterprise’s legal status in 2024 in Vietnam? (Image from the Internet)

When is enterprise’s legal status shown as not operate at registered address on the National Database in Vietnam?

Clause 2, Article 41 of Decree 01/2021/ND-CP stipulates the legal status of "Not operate at registered address" of enterprises in the National Database as follows:

Not operate at registered address

The enterprise’s legal status on the National Enterprise Registration Database includes:

1. “business suspension” means the enterprise’s legal status during its business suspension as prescribed in Clause 1 Article 206 of the Law on enterprises. Starting date of “business suspension” status is the date of business suspension registered by the enterprise. Ending date of “business suspension” status is the ending date of business suspension period as notified by the enterprise or the date of resumption of business ahead of schedule registered by the enterprise.

2. “Not operate at registered address” means the enterprise’s legal status showing that, through inspection or verification, tax authorities and relevant agencies find that the enterprise does not operate at its registered address. The tax authority shall provide information about the enterprise that no longer operates at its registered address to the business registration authority. Change, update and starting and ending dates of the enterprise's status shall be decided by the tax authority. The tax authority shall update and notify the “Not operate at registered address” to the business registration authority through the tax registration information system which is connected with the National Enterprise Registration Information System. The business registration authority shall record and update the enterprise’s legal status as notified by the tax authority on the National Enterprise Registration Database.

3. “revocation of enterprise registration certificate due to tax decision enforcement” means the legal status of the enterprise whose enterprise registration certificate is revoked according to a decision issued by the Business Registration Office at the request of the tax authority for enforcement of tax administrative decision. Starting date of the “revocation of enterprise registration certificate due to tax decision enforcement” status is the date on which the Business Registration Office issues a decision to revoke the enterprise registration certificate. Ending date of the “revocation of enterprise registration certificate due to tax decision enforcement” status is the date on which the Business Registration Office restores the enterprise’s legal status at the request of the tax authority in accordance with regulations of the Law on tax administration.

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According to this Article, the legal status of the enterprise is "Not operate at registered address" when through inspection or verification, tax authorities and relevant agencies find that the enterprise does not operate at its registered address in Vietnam.

Who has authority to restore the enterprise’s legal status in Vietnam?

Pursuant to Article 76 of Decree 01/2021/ND-CP regulating restoration of an enterprise’s legal status after its enterprise registration certificate is revoked:

Restoration of an enterprise’s legal status after its enterprise registration certificate is revoked

1. The Business Registration Office shall issue a decision to invalidate the decision to revoke the enterprise registration certificate and restore the enterprise’s legal status on the National Enterprise Registration Information System in the following cases:

a) The Business Registration Office determines that the enterprise is not subject to revocation of the enterprise registration certificate;

b) The Business Registration Office receives a written request from the tax authority for restoration of the enterprise’s legal status after the enterprise registration certificate is revoked due to collection of tax debts before the enterprise’s legal status on the National Enterprise Registration Database is changed into “dissolved”.

2. The Business Registration Office shall take responsibility for its decision to invalidate the decision to revoke the enterprise registration certificate and restoration of the enterprise’s legal status on the National Enterprise Registration Database.

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According to this Article, the Business Registration Office has the authority to restore the legal status of the enterprise in Vietnam.

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