ACTIONS PROHIBITED WHEN SHUTDOWN AND DISSOLUTION PROCEDURES OF ENTERPRISES AND BRANCHES IN VIETNAM

Shutdown and dissolution is legal procedures to terminate the existing of an enterprise under a resolution or decision of the owner (for sole proprietorships), the Board of Partners (for partnerships), the Board of Members and the owner (for limited liability companies) or the GMS (for joint stock companies);

Shutdown and dissolution an enterprise is more and more complicated than procedures of registration for establishment, management, reorganization, and shall be followed the conditions and procedures:

ACTIONS PROHIBITED FROM THE ISSUANCE

DATE OF THE SHUTTING DOWN AND DISSOLUTION DECISION

From the issuance date of the shutdown and dissolution decision, the enterprise and its executives are prohibited from the following actions:

Concealing, disguising assets;
Denying or reducing the creditors’ claims to the debts;
Convert unsecured debts into debts secured with the enterprise’s assets;
Concluding new contracts, except for dissolving the enterprise;
Pledging, donating, leasing out assets;
Terminating effective contracts;
Raising capital in any shape or form.

One of the most challenged procedures in shutdown and dissolution of an enterprise in Vietnam is tax inspection, tax settlement and tax completion certificate prior to the final step at the licensing department.

The enterprise keeps accounting records in accordance with accounting laws, tax reports, lawful invoices for investments, revenues, expenses during its operation and ready to prove for any tax obligation and fully pay tax arrears upon tax inspection decisions.

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