What to do to dissolve a company is a common question for many business owners when their business is no longer profitable or they want to change direction. According to the latest legal regulations in 2026, this process requires absolute accuracy in fulfilling tax and financial obligations to avoid future legal risks. In fact, according to statistics from business registration agencies, over 801 businesses often encounter difficulties at the tax settlement stage, causing the procedure to drag on from 3 to 12 months if the accounting records are not thoroughly prepared.
Legal conditions for a business to be allowed to dissolve.
Before delving into the steps involved in dissolving a company, business owners need to understand the prerequisites. Simply submitting an application doesn't guarantee immediate approval; businesses must fulfill the following obligations:
- Ensure that all outstanding wages, severance pay, and social insurance contributions are paid to employees in full and on time. Enterprise Law 2020.
- Fulfill all tax obligations to the state budget and all debts to partners and suppliers.
- The business is not currently involved in any dispute resolution process in court or arbitration to ensure the rights of the parties involved.
- The head office must cease operations of its branches, representative offices, and business locations before dissolving the head office.
Quick checklist before filing for company dissolution
To increase your chances of getting your application approved on the first try and avoid multiple rejections, you should carefully review the following items:
- All tax settlement obligations have been fulfilled and confirmation of tax code closure has been received.
- All outstanding debts to suppliers and related parties have been settled.
- All branches, representative offices, and business locations have ceased operations.
- All labor disputes have been resolved and social insurance contributions have been paid in full.
- The complete legal documentation, including resolutions, decisions, and a list of creditors, has been prepared.
Can I dissolve my company myself?
Many business owners wonder if they can handle the procedures themselves to save costs. In reality, doing it themselves is possible, but the level of difficulty depends greatly on the specific documentation of each individual business.
Cases where the business can do it itself.
The following units typically have fairly simple procedures and allow self-application:
- Newly established businesses have not yet issued invoices, have not commenced actual business operations, or have generated no financial activity.
- The accounting system is transparent, quarterly and annual tax reports have been fully completed, and there are no outstanding social insurance contributions.
In case professional assistance is required
Conversely, if a business falls into the following categories, self-processing often leads to errors and repeated rejections of the application:
- Businesses may have outstanding tax debts or accounting records that have been lost over multiple accounting periods.
- The inconsistent documentation system can easily lead to significant tax arrears when tax authorities conduct audits.
- The company is large, has many assets to be liquidated, and a complex system of dependent units.
In these complex cases, consulting with experts is recommended. MAN – Master Accountant Network This will help business owners clearly identify gaps in their documentation so they can address them before submitting it to the authorities.
Detailed procedure for dissolving a company in 2026
The dissolution process has now been optimized through electronic portals. However, to answer the question of what needs to be done to dissolve a company in the most detailed way, you need to follow these core steps:
Through the decision to dissolve the business.
This is the initial legal step that determines the termination of a business entity's existence. The business needs to proceed as follows:
- Convene a meeting of the Board of Members or the General Meeting of Shareholders, depending on the type of business.
- Draft and pass resolutions and decisions on dissolution with the percentage of votes in favor as stipulated in the company's charter.
- The decision must clearly state the reasons for dissolution and a specific plan for handling any outstanding contracts.
Notify the business registration authority of the dissolution status.
Within 7 working days from the date the decision is approved, the enterprise must submit a notification dossier to the Business Registration Office under the Department of Planning and Investment. The purpose of this is to change the enterprise's status on the National Information System to "Undergoing dissolution procedures," and to publicly post the information so that creditors and related parties are aware.
Liquidate assets and fulfill tax obligations.
This is the most crucial stage and often the "bottleneck" that causes many businesses to give up. To succeed, businesses need to:
- Establish an asset liquidation team or utilize the internal accounting department to reassess all existing assets.
- The tax code deactivation procedure is carried out. This is a step where the tax authorities will inspect and audit the company's accounting records throughout its operation.
If your business is stuck in the tax settlement phase or has incomplete accounting records, making mistakes from the start can prolong the dissolution process by many months and incur significant, unexpected costs. Experience in handling this is key. business dissolution This shows that proactively reviewing accounting errors before inviting tax authorities to conduct an audit will help businesses minimize at least 50% unnecessary penalties.
Submit the official dissolution application to the business registration authority.
After settling all debts and receiving notification of tax compliance from the tax authorities, the business must submit the final set of documents within 5 working days. The documents must be complete as required to have the business name removed from the national tax information portal.
Update the results of removing the business name.
Within one business day of receiving all valid documents, the business registration authority will update the company's status to "Dissolved". At this point, the company's legal entity status officially terminates.
When should you use professional company dissolution services?
The decision to outsource or do it in-house is usually based on a balance of time, cost, and risk. In practice, some organizations use outsourcing. Company dissolution services in Ho Chi Minh City We have shortened the tax settlement time from over 6 months to 6 to 8 weeks thanks to our team of experts reviewing all the documents. You should consider this service when:
- It is necessary to definitively resolve tax debts that are difficult to explain or have incomplete documentation.
- We want to protect the personal reputation of our legal representative from exit bans.
- A professional agency is needed to represent you directly to the Tax authorities in order to optimize the amount of tax payable.
How much will it cost to dissolve a company in 2026?
The cost of closing a business is not fixed. Below is a summary of the basic types of expenses that businesses typically incur:
| Type of expense | Content details | Reference price (VNĐ) |
|---|---|---|
| State fees | Online dissolution registration fee | Free of charge |
| Newspaper advertising fees | Announcement of dissolution decision (3 consecutive issues) | 300,000 – 600,000 |
| Accounting fees | Reviewing accounting records and settling taxes. | 2,000,000 – 15,000,000 |
| Service fees | Representative for full-service procedure | Depending on the scale |
| Total cost | Typical cost levels for small and medium-sized enterprises | 5,000,000 – 25,000,000 |
Note: Accounting and service fees can vary greatly depending on the cleanliness or error rate of a business's records. Businesses with messy invoices and documentation will typically incur higher costs for data processing before final settlement.
Serious risks of improper self-dissolution.
If business owners don't fully understand the steps involved in dissolving a company and attempt to do it haphazardly, they may face serious consequences:
- High tax arrears and administrative penalties: Due to a lack of understanding of current tax laws, inaccurate explanations were given during tax audits.
- Tax identification number permanently suspended: If tax obligations are not fulfilled, the business will be moved to the "Inactive at registered address" status, preventing the owner from establishing a new company.
- Risk of being banned from leaving the country: According to current regulations, the legal representative of a business that owes taxes may be temporarily prohibited from leaving the country until the financial obligations are fulfilled.
Documents required for company dissolution
To ensure your application is approved on the first try, you need to prepare all of the following items:
- Notice of business dissolution.
- Resolutions, decisions, and copies of meeting minutes from competent authorities.
- A detailed debt settlement plan, including a list of creditors and the amount of debt already paid.
- Original Business Registration Certificate.
- Confirmation of fulfillment of tax obligations from the relevant tax authority.
Frequently Asked Questions about Company Dissolution
Below are some frequently asked questions that MAN – Master Accountant Network receives from clients during consultations regarding what steps to take when dissolving a company.
How long does it take to dissolve a company?
Can a company be dissolved if it has tax debts?
Does inactivity require dissolution?
Does a company need to be dissolved if it's not generating revenue?
Is tax settlement required when a company is dissolved?
Professional business dissolution consulting services at MAN
For businesses with complex accounting systems, MAN – Master Accountant Network offers a comprehensive solution, helping business owners confidently conclude their business journey with the utmost ease. We not only handle legal procedures but also act as experts in protecting the rights of businesses before tax authorities.
Our strengths include:
- Review all accounting records, identify and address risks before final settlement.
- Business representatives will provide direct explanations to the Tax authorities and the Department of Planning and Investment.
- Optimize your time and ensure no unexpected penalties arise due to paperwork errors.
Conclude
Understanding the steps involved in dissolving a company allows businesses to be more proactive in the process of ending their operations. Although the process may seem complex with numerous checks from tax authorities, thorough preparation of documentation and support from professional services will help you avoid unnecessary legal risks. Don't let small accounting errors negatively impact your business plans and personal reputation in the future.
Contact information for MAN – Master Accountant Network
- Address: 19A, 43rd Street, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production is overseen by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant Network, CPA Vietnam auditors with over 30 years of experience in accounting, auditing, and financial consulting.
