Starting a business in Vietnam is what many entrepreneurs and business owners desire. However, being able to start a company does not necessarily mean success. Globally, 90% of startups fail and that’s a scary figure to look at.
The truth is, no one business fails without any signs or warnings. For many business owners, there are many indicators you can observe and use them to determine that your business may not work out in the long run.
If you detect them earlier, you can cut down your losses significantly by going through a company dissolution process in Vietnam.
Recognising the signs that your business is failing is vital for survival. Here are some of them to indicate that your business may be in serious trouble.
Signs Your Business in Vietnam may be Failing:
1. Low Revenues and Sales
The very obvious reason that entrepreneurs start a business in Vietnam is to increase sales and generate profits. If your sales and revenues have been consistently low for many months and you are struggling to find any ways to boost them, this is a great sign of failure.
2. Delayed Bill Payments
Unable to pay your bills on time is a big no-no. Your vendors will lose trust in you and it is hard to continue operating your business in Vietnam. Worse, you can get yourself into legal complications and destroy your business.
3. Lack of Competitive Edge
Not having a competitive edge means you have nothing unique to make customers choose you over your competitors. In other words, your business will not grow and your sales will suffer.
How to Dissolve a Company in Vietnam
A company dissolution in Vietnam requires a high level of expertise and professionalism to carry out. It involves many tedious financial and legal red tapes, which may take a long time to complete.
Therefore, a company dissolution in Vietnam should be something that you must get assistance from a reputable company dissolution expert.
Terms and Conditions
A company in Vietnam can only be dissolved when the below one of the below circumstances occur:
- The decision of dissolution is made by the owner, partners, Board of Members, or General Meeting of Shareholders, depending on the structure of the company
- The operational period in the charter of the company has expired without an extension decision
- The company is unable to retain the minimum number of members
- The business registration certificate is annulled
A company in Vietnam must meet the following requirements to be dissolved:
- All debts and liabilities of the company can be settled
- The company is not in any court disputes or arbitration tribunal
Procedure of Dissolving a Company in Vietnam
- Apply to the Department of Planning and Investment (DPI)
- A company with an investment registration certificate must terminate all investment projects
- Upon approval, send the dissolution decision and minutes of meetings to relevant authorities
- The dissolution decision will be published on the National Business Registration portal and the company’s headquarters, representative offices and branches
- Fulfill tax liabilities with the tax authority
- Register the company dissolution and return the enterprise registration certificate
How Cekindo Can Be of Assistance
Cekindo is one of the leading companies with a wide experience in business consultancy and company dissolution in Vietnam.
We have helped a lot of businesses in Vietnam in the past, guiding business owners step-by-step with the company’s dissolution process. We are a legally registered firm with the company dissolution process regulated by Vietnamese laws and authorities.
The dissolution and liquidation of a company can be very lengthy and complicated, especially when it comes to the paperwork and procedure.
However, our legal consultant at Cekindo can deregister or dissolve your company smoothly and efficiently, which saves you time and resources.
To start the process of company dissolution in Vietnam, contact us via the form below.