Business dissolution is a crucial process that requires careful preparation in terms of time and finances. This article provides detailed information on the costs and timeline necessary to complete the business dissolution process in 2025.
1. Business Dissolution Timeline Under the New 2025 Regulations
1.1. Key Timeframes
The business dissolution process includes several important timeframes that businesses must comply with: (Article 208 of the Law on Enterprises)
- Approval of the dissolution decision: The business must pass a resolution or decision on dissolution and submit it to the Business Registration Office, the tax authority, and employees within 07 working days from the approval date.
- Liquidation of assets and debt settlement: The business owner or management agency directly organizes asset liquidation and debt settlement. The time required for this step depends on the specific situation of the business.
- Contract and debt settlement: 15-45 days, depending on business scale.
- Debt payment: 30-60 days after the dissolution notice.
- Submission of dissolution documents: After settling all debts, the business must submit the dissolution registration dossier to the Business Registration Office at its head office within 05 working days.
- Processing of dissolution documents: Upon receiving the dossier, the Business Registration Office will forward the information to the tax authority. Within 02 working days, the tax authority must respond regarding the business’s fulfillment of tax obligations. If there is no rejection, within 05 working days from the date of receipt, the Business Registration Office will update the business’s legal status to “dissolved.”
1.2. Dissolution Duration
The total dissolution process usually takes 3-4 months, depending on:
- Business scale: Large businesses typically own more assets, branches, and personnel, making asset liquidation and related matters take longer than smaller businesses.
- Financial status: Businesses with complex financial situations, especially those with multiple debts and financial obligations, require time for inventory checks, reconciliation, and debt settlement before completing dissolution procedures.
- A number of contracts to be settled: The number of business, labor, and service contracts signed by the business directly affects the dissolution time. Negotiating, terminating, or transferring these contracts requires time and coordination among related parties.
- Complexity of debts: If the business has multiple debts with different creditors, especially secured debts or those under dispute, resolving and settling these debts will extend the dissolution timeframe.
2. Business Dissolution Costs
2.1 Administrative Fees and Charges
The official fees include:
| Fee Type | Amount (VND) |
| Information disclosure fee | 100,000 |
| Dossier appraisal fee | 200,000 |
| Document certification fee | 50,000-100,000 per set |
| Bankruptcy fee | 1,500,000 |
2.2 Other Costs
- Asset liquidation and debt settlement: These costs depend on the quantity and value of the assets, as well as the number and amount of debts to be settled.
- Legal and accounting consultancy fees: If the business hires professional consulting firms to assist with the dissolution process, the fees will be agreed upon based on the scope of work and the complexity of the documentation.
3. Completion Process and Timeline
3.1. Implementation Steps
The dissolution process includes the following key steps:
Approval of the business dissolution decision: (Clause 1, Article 208 of the 2020 Law on Enterprises)
The business must pass a resolution or decision on dissolution.
The resolution or decision must include information such as the business name, head office address, reason for dissolution, deadline and procedures for contract liquidation, debt settlement, labor obligation handling plan, as well as the full name and signature of the authorized person.
Asset liquidation and debt settlement: (Clauses 2 and 5, Article 208 of the 2020 Law on Enterprises)
The business owner or management body (Members’ Council, Board of Directors) directly carries out the liquidation of assets and settlement of debts in the following priority order:
- Wages, severance allowances, social insurance, health insurance, unemployment insurance, and other employee benefits;
- Taxes;
- Other debts.
Public announcement of the dissolution decision: (Clause 3, Article 208 of the 2020 Law on Enterprises)
Within 07 working days from the date of the decision, the business must send the resolution, dissolution decision, and meeting minutes to the Business Registration Office, tax authorities, and employees. It must also be published on the National Business Registration Portal and posted at the head office, branches, and representative offices.
If the business has outstanding financial obligations, it must submit the dissolution resolution/decision along with a debt settlement plan.
Submission of the business dissolution dossier: (Article 210 of the 2020 Law on Enterprises)
After settling all debts, within 05 working days, the legal representative must submit the dissolution dossier to the Business Registration Office at the business’s head office.
The dossier includes a dissolution notice, an asset liquidation report, and a list of creditors along with settled debts.
Updating the business’s legal status: (Clause 8, Article 208 of the 2020 Law on Enterprises)
Once the dissolution dossier is received, if there are no objections from tax authorities or related parties within the specified period, the Business Registration Office will update the business’s legal status in the National Business Registration Database to “dissolved.”
Note: During the dissolution process, the business must ensure full payment of debts and other financial obligations. It is strictly prohibited from engaging in activities such as concealing or dispersing assets, waiving debt collection rights, or signing new contracts unrelated to the dissolution.
For more details on business bankruptcy procedures, please refer to: Detailed Guide to Bankruptcy Procedures for Businesses in 2025
3.2. Tips for Shortening the Process
- Prepare complete documents in advance: Having all necessary documents ready speeds up submission and review, avoiding delays caused by additional requests for modifications or supplements.
- Hire professional advisory services: Legal consulting firms with expertise in bankruptcy procedures can help businesses navigate the process accurately and efficiently while resolving any legal obstacles.
- Develop a detailed stage-by-stage plan: Creating a step-by-step plan for the dissolution process allows businesses to track progress, assign tasks clearly, and ensure all actions are completed on time, preventing unnecessary delays.
- Settle debts proactively: Paying off or negotiating debt settlements before filing for bankruptcy reduces disputes with creditors, simplifying and expediting the process.
4. Factors Affecting Costs and Timeline
The dissolution process may be prolonged or incur additional costs due to the following factors:
- Large business scale
- Larger businesses often have more assets, contracts, and financial obligations to handle.
- Asset liquidation, debt resolution, accounting reconciliation, and completing legal procedures take longer than for smaller businesses.
- Multiple branches and representative offices
- If the business has branches or representative offices in multiple provinces, the dissolution must comply with local procedures at each location.
- Closing each branch or office may cause delays and lead to additional administrative costs.
- Complex debt situation
- Businesses with debts involving multiple parties such as banks, suppliers, customers, or tax authorities will need more time for reconciliation, negotiations, and debt settlement.
- If the business cannot meet its debt obligations, it may have to undergo bankruptcy proceedings instead of a regular dissolution, increasing legal costs.
- Disputes with partners or employees
- Contract disputes with partners or employee complaints about wages or insurance benefits can delay the dissolution process.
- The business must resolve all legal disputes before finalizing the closure.
5. Conclusion
Business dissolution requires thorough financial and time planning. Understanding the associated costs and timeline helps businesses plan effectively and avoid unnecessary risks.
Important note: The fees and deadlines mentioned in this article may change based on new regulations.
For detailed consultation on this matter, please get in touch with us through the following channels:
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