Dissolution knowledge

Expiration of operating period: When the operating period stated in the company's charter has expired and the members or shareholders have not decided to extend it.

According to the company's decision: The business owner or top management proactively terminates operations:

1. For a single-member limited liability company: As decided by the company owner.
2. For limited liability companies with two or more members, and partnerships: According to the resolution or decision of the Board of Members.
3. For joint-stock companies: According to resolutions and decisions of the General Meeting of Shareholders.

Cases where business dissolution is mandatory

• Missing the minimum number of members: The company no longer has the minimum number of members required by the Enterprise Law for a continuous period of 06 months without undergoing the procedure to change its business type.Hiep.

• Recalled Business registration certificate: This is a case of compulsory dissolution due to violations of the law or by court order (except where the Law on Tax Administration provides otherwise regarding the enforcement of tax debts).

• Other cases: In accordance with current laws or decisions from competent authorities.

To ensure your application is approved quickly, businesses should follow these steps:

• Review and audit the accounting system: Conduct a thorough review and verification of all accounting books, invoices, and documents of the business over the years of operation to ensure accuracy and validity.

• Submit your tax return: Prepare and submit tax return forms for each type of tax incurred (such as corporate income tax, personal income tax, VAT, etc.) up to the time of the dissolution decision.

• Fulfilling obligations regarding invoices and supporting documents: Complete the procedures for canceling unused invoices and submit reports on invoice usage in accordance with current regulations.

• Please confirm with the tax authorities: Work with the directly managing tax authority to obtain written confirmation that the business has fulfilled all tax obligations and has had its tax identification number closed.

Employee rights when a company is dissolved:

• Financial settlement: Pay all outstanding salaries, allowances, and benefits in full.

• Severance pay: Pay severance pay or unemployment benefits in accordance with regulations.

• Insurance coverage: Finalize and settle social insurance (BHXH), health insurance (BHYT), and unemployment insurance (BHTN) benefits.

• Other commitments: Ensure that other benefits stipulated in collective bargaining agreements and individual employment contracts are fulfilled.

Tax settlement process upon dissolution:

• Financial settlement: Received full salary, allowances, and outstanding benefits.

• Severance pay: They are entitled to severance pay or unemployment benefits in accordance with the law.

• Insurance coverage: The employer will handle and complete all social insurance (BHXH), health insurance (BHYT), and unemployment insurance (BHTN) benefits.

• Contractual commitment: They are guaranteed other benefits as committed in the collective bargaining agreement and the signed employment contract.