I. What are the major challenges with closing a business in Vietnam?

The main thing to remember throughout the process is that the dissolving company, a branch office or a representative office, one should pay close attention to the involvement of all key stakeholders, i.e. the employees, customers, creditors, business partners and relevant authorities.

The following are key information to gather for thorough analysis

II. What does the dissolution process involve?

Once an analysis has been through, the next procedures mostly deal with reporting and processsubmitting the relevant documents to the various regulatories and tax authorities at each step of the , terminating contracts, liquidating assets and settling liabilities, and general administrative work such as returning the corporate seal, registration certificates, and having the company’s name removed from the system of the license authorities.

III) How to prepare document to close a business in Vietnam?

1. Documents submitted to the licensing authority in Vietnam:

    a. Liquidation notice of enterprise;

   b. Minutes of the meeting of Management Board / Board of Directors decided on the dissolution of enterprises;

    c. The company’s decision on liquidation;

    d. Report on enterprise asset liquidation;

    e. The list of creditors and the paid debt;

    f. Documents evidencing that enterprise has fulfilled all of its tax;

    g. Confirmation on social insurance for employees after the dissolution decision;

    h. The seal and certificate of seal sample registration.

2. Documents submitted to the tax authority in Vietnam:

    a. Liquidation notice of enterprise;

    b. Minutes of the meeting of Management Board / Board of Directors decided on the dissolution of enterprises;

    c. The company’s decision on dissolution;

    d. Audit reports and tax settlements;

    e. The financial statements for the year to date the decision on dissolution;

    f. The company’s tax liabilities audited by tax authority;

    g. Verification of tax obligations of the enterprise.

Closing a business in Vietnam might be a lengthy process and more complicated than setting up a company in Vietnam. Sometimes, it is important to make a decision to exit and start a new venture. As a law firm in Vietnam, we do assist clients to close the business, exit the investment and deal with pending issues with licensing authorities including department of planning and investment, department of labour, tax bureau and others.

Nguồn: https://antlawyers.vn/legal-service/how-to-close-a-business-in-vietnam.html

Pursuant to the provisions of the Vietnam laws, the termination of operation of representative offices of foreign traders in Vietnam at the Provincial Department of Industry and Trade shall be conducted as follows:

Preparation of dossiers for termination of operation of representative offices includes:

The order and procedures for termination of operation of representative offices at competent agencies shall be as follows:

Foreign traders whose representative offices have terminated of operation shall be responsible for performing contracts, paying debts, including tax debts and settling lawful interests for laborers who have worked at the representative office in accordance with the laws.

I. What are the major challenges with closing a business in Vietnam?

The main thing to remember throughout the process is that the dissolving company, a branch office or a representative office, one should pay close attention to the involvement of all key stakeholders, i.e. the employees, customers, creditors, business partners and relevant authorities.

The following are key information to gather for thorough analysis

    1. Company size in terms of capital and number of employees?

    2. Enterprise’s business sector?

    3. Tax invoice usage declaration?

    4. Annual profit?

    5. Compliance with tax procedures?

    6. Administrative violations in the field of taxation?

    7. Any outstanding tax?

    8. Tax document filing records?

    9. Other tax matters?

II. What does the dissolution process involve?

Once an analysis has been through, the next procedures mostly deal with reporting and submitting the relevant documents to the various regulatories and tax authorities at each step of the process, terminating contracts, liquidating assets and settling liabilities, and general administrative work such as returning the corporate seal, registration certificates, and having the company’s name removed from the system of the license authorities.

III) How to prepare document to close a business in Vietnam?

1. Documents submitted to the licensing authority in Vietnam:

    a. Liquidation notice of enterprise;

    b. Minutes of the meeting of Management Board / Board of Directors decided on the dissolution of enterprises;

    c. The company’s decision on liquidation;

    d. Report on enterprise asset liquidation;

    e. The list of creditors and the paid debt;

    f. Documents evidencing that enterprise has fulfilled all of its tax;

    g. Confirmation on social insurance for employees after the dissolution decision;

    h. The seal and certificate of seal sample registration.

2. Documents submitted to the tax authority in Vietnam:

    a. Liquidation notice of enterprise;

    b. Minutes of the meeting of Management Board / Board of Directors decided on the dissolution of enterprises;

    c. The company’s decision on dissolution;

    d. Audit reports and tax settlements;

    e. The financial statements for the year to date the decision on dissolution;

    f. The company’s tax liabilities audited by tax authority;

    g. Verification of tax obligations of the enterprise.

Closing a business in Vietnam might be a lengthy process and more complicated than setting up a company in Vietnam. Sometimes, it is important to make a decision to exit and start a new venture. As a law firm in Vietnam, we do assist clients to close the business, exit the investment and deal with pending issues with licensing authorities including department of planning and investment, department of labour, tax bureau and others.

With cultural compatibility, Korean products such as fashion, home appliances, cosmetics, and functional foods are very popular and widely consumed in Vietnam. Therefore, with the quick grasp of this trend, the products of Korean enterprises have become the subject of counterfeiting. Besides, with the development of e-commerce channels, these counterfeit products quickly reach consumers, affecting the interests of consumers in Vietnam and Korean enterprises.

Moreover, with technology, forgery is increasingly done in a very sophisticated way from the packaging, share, and the color of the counterfeit products. Therefore, without a method of comparison and inspection, it is difficult for consumers to detect the product as a fake. This causes great damage to Korean enterprises not only the market share, but also the value of reputation and intellectual property rights being violated.

Besides, the Covid-19 pandemic makes people in Vietnam more inclined to buy goods online. This is an opportunity for individuals and organizations that counterfeit products to easily reach out to consumers without being detected and punished.

In addition, although Vietnam has a mechanism to enforce intellectual property rights, these regulations have not been thoroughly applied. Therefore, many individuals and organizations making counterfeit goods and infringing intellectual property still continue to violate without being caught. Meanwhile, consumers still have to pay to use bad quality products.

With the support of Korean businesses, Vietnam authorities will continue to improve their capability in identifying counterfeit goods and goods infringing on intellectual property. Therefore, an exchange between Korean businesses and the General Department of Market Management of Vietnam is necessary in providing methods to detect counterfeit goods and intellectual property violations for Vietnam agencies to exchange support, raise awareness of intellectual property rights protection, and provide information on intellectual property rights for Korean businesses in Vietnam. It is expected that Vietnam intellectual property enforcement agencies improve their efficiency in identifying, preventing, combating and handling counterfeit and infringing goods in Vietnam to protect consumers and company in creating an encouraging investment environment in Vietnam, for Korean investors to enter Vietnam for setting up company, factory and do business in Vietnam.