Navigating the Dissolution of a Company: A Step-by-Step Procedure

1. Navigating the Dissolution of a Company: A Step-by-Step Procedure

Dissolution of companies is one of the procedures specified in the  Law on Companies for companies to withdraw from the market. The dissolution of an enterprise arises not only  from the relationship between the members of the enterprise but also from the relationship between the enterprise and other entities including customers, partners, employees of the enterprise and other entities. state management agency. These are property relations related  to state management activities.  

The dissolution is only considered complete when the company has finished handling all of the above subjects. Therefore, the dissolution of the company must follow specific procedures.  

According to the Enterprise Law 2020, a company can be dissolved in the following cases: 

• Voluntary dissolution: According to the decision of the company owner or when the company does not decide to extend the operation term stated in the charter. 
• Forced dissolution: In case the company does not have enough members for 6 consecutive months or has its operating license revoked. 

2. Procedures for company dissolution: 

 In case of voluntary dissolution: 

  Step 1: Approving the decision to dissolve the company 

 ➥ To be able to proceed with the dissolution of the company, the company must first conduct a meeting to approve the dissolution decision. Therefore, the dissolution must be approved by the owner for a one-member limited liability company, of the members' council, for a limited liability company with two or more general partners, of the general meeting of shareholders for joint-stock companies and of the general meeting of shareholders. meeting of partners for a partnership company. The decision on dissolution of an enterprise  must contain the following main contents: 

• Name and address of the company's head office; 
• Reason for dissolution; 
• Time limit, method of contract liquidation and payment of debts of the company; the time limit for debt payment and contract liquidation shall not exceed 06 months from the date of approval of the dissolution decision; 
• The plan to manage obligations arising from the labor contract; 
• Full name,  signature of the legal representative of the company. 

Step 2: Announce the dissolution decision 

 ➥ The company must notify the person with related rights and interests of the dissolution decision. In case the company has unpaid financial obligations, it must enclose the decision on dissolution of the debt settlement plan to its creditors and persons with related interests and obligations. The notice must contain the name and address of the creditor; the debt amount, term, place and method of payment of this debt; method and time limit for settling the creditor's claim. 

Step 3: Liquidate assets and pay corporate debts  

 ➥ The company's debts are paid in the following order: 

• Debt salary, severance allowance, social insurance as prescribed by law and other benefits of employees under the collective labor agreement and signed labor contract; 
• Tax debt; 
• Other debts.  

➥ After paying off all debts and business dissolution costs, the rest belongs to the owner of the private business, members, shareholders or the owner of the business. 

➥ Debt settlement is very complicated because it is necessary to prescribe an appropriate order to ensure the rights and interests of the people involved. 

Step 4: Submit dissolution application 

Step 5: Update the legal status of the business in the National Business Registration Database 

 ➥ Within 05 working days from the date of receipt of the dissolution dossier, the business registration authority shall update the legal status of the enterprise into the national enterprise registration database. 

3. In case of forced dissolution: 

Step 1: The business registration authority shall notify the state of the dissolved enterprise  on the National Business Registration Portal.  

The business registration authority must notify the status of the enterprise subject to dissolution procedures on the National Business Registration Portal when issuing a decision to revoke the Certificate of Business Registration or upon receipt of the Certificate of Business Registration. effective dissolution decision of the Court. The decision to revoke the Certificate of Business Registration or the decision of the Court must also be attached to the notice.

Step 2: Receive the dissolution decision  and send this decision to the company registration agency, tax agency, employees of the company and publicize this decision. 

Step 3: Organize asset liquidation and debt payment 

Step 4: Submit the company dissolution file 

Step 5: The business registration authority updates the legal status of the enterprise in the National Business Registration Database. 

4. Dissolution dossier includes: 

Notice of dissolution of the company; 

Minutes of liquidation of corporate assets; the list of creditors and the payment of debts, including  tax debts, social insurance debts, debts to employees after the decision on dissolution of the enterprise (if any); 

Seal and form the certificate (if any); 

Certificate of business registration. 

5. When using ACC Group's Business Dissolution Service, entrepreneurs will receive: 

✔ Free consultation on related issues. 

✔ Work and bring results to business people

✔ No need to prepare documents and records. 

✔ On behalf of entrepreneurs, submit documents at the Department of Planning and Investment and carry out other related procedures. 

✔ Escrow does not incur any fees. 

✔ Fast lead time.  

6. Why should professionals use ACC Group's services? 

• Ready to take responsibility if the fault belongs to ACC Group. 
• Commitment to plan fees and no additional costs. 
• Free consultation support before and after completion 24/7.
• ACC Group is responsible for explaining and explaining tax accounting records when state agencies have requests for accounting data for implementation.
• ACC Group commits and is still responsible for keeping your accounting information confidential even after terminating the contract to provide accounting services.
• ACC Group commits and remains responsible for keeping your accounting information confidential even after terminating the contract to provide accounting services.