Procedures for Terminating a Business Location in Vietnam

Short answer: Terminating a business location is the simplest procedure among dependent units: the enterprise only needs to notify the termination to the Business Registration Office where the business location is situated. The dossier includes: a notice of termination of the business location in the prescribed form; and the termination decision of the enterprise/managing branch. Before that, the enterprise must fulfill tax obligations related to the business location and settle assets, contracts, and employees (if any). Legal basis: the Law on Enterprises 2020 (as amended by Law No. 76/2025/QH15); Decree No. 168/2025/ND-CP.

Legal basis

• The Law on Enterprises 2020, as amended and supplemented by Law No. 76/2025/QH15 — Article 44 (business locations);
• Decree No. 168/2025/ND-CP on enterprise registration — procedures for terminating a business location.

Characteristics of a business location

• A business location is where the enterprise conducts specific business activities (a shop, warehouse, workshop…);
• It has no separate seal and no separate tax code — its accounting is dependent on the enterprise/managing branch;
• Therefore its termination procedure is simpler than that of branches and representative offices.

Steps to terminate a business location

Step 1. The enterprise/managing branch issues a decision

A decision to terminate the business location; a plan for handling assets, goods, the premises lease contract, and employees (if any).

Step 2. Fulfill related obligations

• Tax: fulfill tax obligations related to the business location (a business location has no separate tax code, so tax obligations attach to the enterprise/managing branch);
• Invoices: if the business location used separate invoices — finalize and handle them as prescribed;
• Premises lease contract: liquidate it;
• Employees (if any): settle their entitlements.

Step 3. Notify the termination

• A notice of termination of the business location in the prescribed form;
• Accompanied by the termination decision;
• Submitted to the Business Registration Office where the business location is situated.

Notes

• A business location has no legal person status — all remaining obligations are borne by the enterprise/managing branch;
• If the business location is in another province than the head office: note that related tax obligations (VAT allocation…) must be settled before termination;
• Remove the signboard and liquidate assets at the location.

Frequently asked questions

Does terminating a business location require tax finalization?

A business location has no separate tax code, so there is no independent tax “finalization” procedure; however, the enterprise must fulfill tax obligations related to activities at that location.

How does a business location differ from a branch?

A branch has a seal, a dependent-unit tax code, and may sign contracts; a business location is simpler — it is only where specific business activities are conducted, with no separate seal.

What if we simply abandon it without notifying the termination?

The business location will still show as “operating” on the registration system; the enterprise may be penalized upon inspection. The termination should be properly notified.

Notes on applying current regulations

Although the procedure is simple, many enterprises forget to notify the termination when closing a shop or warehouse — leaving “ghost locations” on the system. The list of business locations should be reviewed periodically. Contact an ANT Legal lawyer at 0966.475.966 for assistance.

Common risks to note

• Closing the location without notifying the termination;
• Related tax obligations not yet settled (out-of-province locations);
• The premises lease contract not liquidated;
• Confusing the procedure with branch termination.

How ANT Legal can help

ANT Legal carries out the procedure to terminate a business location; reviews related tax obligations and contracts. For prompt advice, please contact a lawyer at 0966.475.966.

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• Distinguishing branches, representative offices, and business locations
• Should you establish a company or a business household in Vietnam?
• What is a business household? The latest legal regulations on business households
• Procedures for suspending business operations
• Will a company be penalized if established but not operating in Vietnam?