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Dissolution of foreign invested companies is a rather complicated process that requires strict compliance with the provisions of the Law on Enterprise in Vietnam. Foreign investors need to understand the specific conditions and procedures to quickly and legally dissolve a business. In the article below, we will provide specific information on issues related to the dissolution of foreign invested companies.
Pursuant to Article 207 of the Law on Enterprise 2020, foreign-invested enterprises are dissolved in the following cases:
Pursuant to the provisions of Article 207 of the Law on Enterprises 2020, companies can only carry out procedures for dissolution of foreign invested companies when:
Step 1: Approve the dissolution decision
The company held a meeting to approve the dissolution decision.
The dissolution decision includes the following contents:
Step 2: Establish an Asset Handling Council
Step 3: Notify the business registration agency
Within 07 working days from the date of passing the resolution or decision on dissolution, the company sends a notice of enterprise dissolution to the Business Registration Office where the company’s headquarters is located. Accompanying the notice must be the following documents:
Step 4: Announce the dissolution decision
Within 07 working days from the date of approval, the resolution, dissolution decision and meeting minutes. Resolutions and dissolution decisions must be posted on the National Business Registration Portal and publicly posted at the enterprise’s headquarters, branches, representative offices and at least 01 newspapers.
Step 4: Perform asset liquidation:
Make a list of assets and evaluate asset values.
The Asset Liquidation Council will conduct an inventory of assets and compile an asset list. Then, evaluate the remaining value of the asset to determine the appropriate liquidation method for each type of asset.
Proceed to sell, transfer, or liquidate assets.
After being inspected and evaluated, assets will be sold in the following forms: designated sale or public sale announcement; auction.
Divide the remaining assets (if any) among the owners.
After completing the sale of assets, the proceeds will be used to pay the remaining debts and obligations of the dissolved company (if any).
The remaining amount after fulfilling obligations and completing debt payments will be divided among company members according to capital contribution ratio (for single-member LLCs, the remaining revenue will be recovered by the company owner).
Step 5: Complete tax obligations:
Step 6: Submit documents to complete dissolution:
>>> See more: Difficulties when dissolving a business improperly.
At Long Phan, we provide in-depth support services for dissolution of foreign invested companies with comprehensive solutions. Our Services include:
Dissolution of foreign invested companies is a rather complicated process and can take a long time if the company does not fully prepare the documents and follow the correct process. Therefore, choosing professional consulting services will help customers minimize risks and optimize the business dissolution process. Please contact the hotline 0906735386 for our most detailed and specific support and instructions.
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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