In what cases will an enterprise have its business license revoked?

Pursuant to Clause 1, Article 212 of the Law on Enterprises 2020 stipulates as follows:

Revocation of Business Registration Certificate
1. An enterprise’s Business Registration Certificate will be revoked in the following cases:
a) The content declared in the enterprise registration dossier is fake;
b) The enterprise is established by people prohibited from establishing enterprises according to the provisions of Clause 2, Article 17 of this Law;
c) The enterprise ceases business operations for 01 year without notice notify the Business Registration Authority and Tax Authority;
d) The enterprise fails to send a report as prescribed in Point c, Clause 1, Article 216 of this Law to the Business Registration Authority within 06 months from the deadline for sending the report or has a written request;
dd) Other cases according to the Court’s decision or request of the competent authority according to the provisions of law.
…

Accordingly, cases where businesses have their business licenses revoked include:

– The declared content in the business registration dossier is fake;

– Established by people prohibited from establishing businesses according to the provisions of Clause 2, Article 17 of the Law on Enterprises 2020;

– Cessation of business operations for 01 year without notifying the Business Registration Authority and the tax authority;

– Failure to send a report as prescribed in Point c, Clause 1, Article 216 of the Law on Enterprises 2020 to the Business Registration Authority within 06 months from the deadline for sending the report or with a written request;

– Other cases according to the Court’s decision or request of a competent authority according to the provisions of law.

What are the prohibited activities since the decision to dissolve?

Pursuant to Article 211 of the Law on Enterprises 2020, prohibited activities from the date of dissolution decision include:

– Hiding and dispersing assets;

– Giving up or reducing debt collection rights;

– Converting unsecured debts into debts secured by the assets of the enterprise;

– Signing a new contract, except for the purpose of dissolving the enterprise;

– Pledging, mortgaging, donating, leasing assets;

– Terminating the implementation of an already effective contract;

– Raising capital in any form.

Accordingly, depending on the nature and severity of the violation, the individual committing the violation may be subject to administrative sanctions or criminal prosecution; If damage is caused, compensation must be made.

What are the cases and conditions for dissolution of a business?

Pursuant to Article 207 of the Law on Enterprises 2020, the cases and conditions for dissolution of enterprises are prescribed as follows:

– The enterprise is dissolved in the following cases:

+ End of the operating term stated in the company charter without a decision to extend;

+ According to resolutions and decisions of the business owner for private enterprises, of the Board of Members for partnerships, of the Board of Members and company owner for liability companies limited, of the General Meeting of Shareholders for joint stock companies;

+ The company no longer has the minimum number of members as prescribed by the Law on Enterprises 2020 for a period of 06 consecutive months without carrying out procedures for converting the type of business;

+ Having its business license revoked, except in cases where the Law on Tax Administration 2019 stipulates other.

– Enterprises can only be dissolved when they ensure payment of all debts and other property obligations and are not in the process of resolving disputes at Court or Arbitration. The relevant manager and the enterprise specified in Point d, Clause 1, Article 207 of the Law on Enterprises 2020 are jointly responsible for the debts of the enterprise.

In what cases can a business household registration certificate be revoked?
Pursuant to the provisions of Clause 1, Article 93, Decree 01/2021/ND-CP specifically regulates cases of business households having their business licenses revoked as follows:

– The content declared in the business household registration dossier is fake;

– Cessation of business activities for more than 06 consecutive months without notifying the district business registration authority where the registration is and the Tax Authority;

– Doing business in prohibited industries and occupations;

– Business households run by people do not have the right to establish business households;

– The business household does not send a report as prescribed in Clause 6, Article 16 of Decree 01/2021/ND-CP to the district business registration authority within 03 months from the deadline for sending the report or has a written request;

– Other cases according to the Court’s decision or request of a competent authority according to the provisions of law.

At the same time, in case a State agency decides to revoke the business registration certificate, the enterprise or business household must officially terminate operations from the date recorded in the decision.