In this phase, the company’s board will need to issue a liquidation statement which includes information such as the company name, business registration number, and reasons for liquidation.
When the company is liquidated, it means that its assets will also be liquidated. It is the responsibility for the owners, board, and shareholders to figure out what to do with the remaining assets. They are entitled to take various measures like selling the assets or transferring it to another company.
A company that’s being liquidated will need to submit its final tax returns and clear all tax liabilities including its corporate income tax. This will all need to be submitted no later than 45 days from the date of liquidation.
When a company is liquidated, the owners have the responsibility to clear up the situation for their employees. If the contracts are to be terminated, the company most sort out the financial compensations such as severance payment.
In this phase, the company will need to submit their liquidation form to the Vietnamese Department of Planning and Investment.
After the debts and liquidation responsibilities are all carried out. The Vietnamese Department of Planning and Investment will review the liquidation application. Once everything is approved, the company will officially be liquidated.