Reforming business dissolution procedures

In a report released earlier this week, Board IV said that procedures related to business dissolution or suspension are currently one of the biggest barriers for businesses, especially small and medium-sized enterprises.

Specifically, businesses said that the procedures related to dissolution or suspension of business are longer and more complicated than those for establishing a business. This complexity comes from the fact that management agencies are not synchronized and do not agree on the processing procedures. A typical example is that although the General Department of Taxation does not require it, some tax branches still force businesses to resume operations to close their tax codes. This causes businesses to spend more time and money to carry out tax reports and other procedures, even when the business is no longer operating.

In addition, according to businesses, they do not receive clear support and guidance from management agencies throughout the dissolution process. Also because they have to figure out the procedures themselves, businesses often have their files returned due to missing documents or incorrect procedures, increasing the processing time.

Complicated, inconsistent, inflexible processes and lack of support and guidance from regulatory agencies not only increase the cost of dissolution but also put many businesses in financial difficulty, prolong the time to process procedures and reduce the motivation to complete dissolution. Many businesses have to prolong their operation only on paper to avoid dissolution costs, while in reality they are no longer able to operate effectively.

Competition in the market is fierce, so along with tens of thousands of businesses being established each year, tens of thousands of businesses also withdraw from the market by bankruptcy or dissolution, of which dissolution is the most common form. According to data from the National Business Registration Portal, in 2024, 21.6 thousand businesses will dissolve; and more than 76.1 thousand businesses are waiting for dissolution procedures. There are many reasons why businesses cannot continue to operate, such as ineffective business, financial weakness, market changes, etc.

If tens of thousands of these businesses can be dissolved quickly, it will not only help reduce the burden on businesses, but also benefit the economy in general and the business market in particular. For example, a quick dissolution procedure will help businesses to properly complete their legal obligations, thereby avoiding problems that may arise later. Or, if dissolution is not too difficult, entrepreneurs can also be willing to experiment with new business models without worrying too much about the complicated procedures when wanting to close an unsuccessful business...

The 2020 Enterprise Law is being proposed for amendment, this is an opportunity to review, reform and improve the procedures for dissolving enterprises in a more favorable direction to help enterprises that no longer need to exist to be dissolved and withdraw from the market quickly and legally. This will contribute to building a transparent and healthy business environment as well as promoting the spirit of entrepreneurship and innovation in the economy - these are also very important factors for the private economy to be able to fulfill its mission as the country's leading growth engine, a pioneering force in the new era.

Netherlands

Source: https://daibieunhandan.vn/cai-cach-thu-tuc-giai-the-doanh-nghiep-post408754.html