Business Division
Detailed guide on the process, procedures, and legal documents for business division as stipulated in the 2020 Enterprise Law.
Division, separation, merger
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According to Articles 192-194 of the 2020 Enterprise Law, enterprise division is the process by which a company (the divided company) transfers all its assets...
Prepare a plan for dividing the company.
The Board of Members/General Meeting of Shareholders/Company Owners pass resolutions and decisions regarding the division of the company in accordance with regulations.
Treatment time: 7-10 days
Announcement regarding the company split.
Provide written notice to creditors, employees, and partners with contracts with the company regarding the company's division.
Implementation period: 15 days from the date the resolution on division is passed.
Registering a new company
Prepare and submit business registration documents for newly established companies in accordance with regulations. The documents include a division plan.
Processing time: 3-5 business days
Transfer of assets and obligations
The division and transfer of assets, capital, rights, and obligations to the new companies will be carried out according to the approved division plan.
Implementation time: 30-60 days (depending on the size of the business)
Termination of the existence of the split company.
After the asset division is completed and the new companies are formed, the divided company ceases to exist.
Business division documents
- Resolution/Decision of the company owner/Board of Directors/General Meeting of Shareholders regarding the division of the company.
- The division plan was approved, specifying the newly established companies, the method of asset distribution, and the rights and obligations.
- List of creditors and the company's debt resolution plan.
- Labor utilization plan
- Articles of incorporation for newly established companies
- Business registration documents for new companies as prescribed by the Enterprise Law.
Division of assets and liabilities
During the period of temporary suspension of operations, the business has the following responsibilities towards its employees:
Property division
• Segmentation based on market value
• Transfer of property ownership
• Transfer of property ownership
Division of responsibilities
• Tax obligations, loan debts
• Intellectual property rights, licenses
• Intellectual property rights, licenses
Note: Failure to submit periodic reports may result in administrative penalties.
