The success of a Vietnam company depends very much on its profits. After paying all the taxes due to the state, a company must verify the amount left for continuing its activities. When this amount is lower than its projections, the company is considered to be in financial difficulties. Once this is established, the company shareholders have two choices: to undergo financial restructuring or to declare bankruptcy. If the financial restructuring process fails, the Vietnam company can start the liquidation procedure.
Our company formation agents in Vietnam can explain how the liquidation of a company is completed. We can also assist those who want to set up a business in Vietnam.
When can a Vietnam company start the liquidation process?
Liquidating a company in Vietnam is not that simple, as it can be declared bankrupt only after three months of being unable to pay its debts. These requirements have been introduced in the recently amended Bankruptcy Law in Vietnam.
The Vietnam company liquidation procedure is also governed by other law, among which:
– the Investment Law;
– the Company Law;
– the Decree on Company Registration.
Our Vietnam company formation experts can explain the legislation related to company dissolution in this country.
The procedure of liquidating a company in Vietnam
The company dissolution process in Vietnam must start with a meeting of the shareholders and management board where a resolution for the termination of the business is agreed. Then, the liquidation decision will be ratified. Within 7 days from the decision, the company representative must file a liquidation petition with the Business Registry Office.
There is also involuntary company liquidation process, where the petition of the dissolution of a Vietnam company is filed by the creditors who have not received their payments. The petition in this case is filed with a Vietnam court of law.
Following the termination of the court dissolution proceedings, the assets of the Vietnam company must be liquidated.
For full information on the company liquidation process and the legislation related to it, please contact us. Our company registration consultants in Vietnam can also assist with the liquidation procedures of local and foreign companies operating in this country.