VietNamNet Bridge – A lot of businesses stopped their
operation, but they could not declare the bankruptcy because of the
administrative procedures barriers.
Spending money to be able to die
Phuc is the owner of a limited
company in Tan Phu district in HCM City which specializes in distributing
construction materials. The difficulties have become unbearable to him and he
decided to dissolve the business.
However, Phuc still has not
reached the summit of hope. “The administrative procedures are very
complicated. I have to go to the taxation body regularly in the last two months,
while the work has not been finished,” he complained.
Another businessman related that
when he came to the HCM City Planning and Investment Department in HCM City to
learn about the procedures to follow. An officer here gave him a piece of paper
with the address of the department’s website, telling him to access to the
website to learn about the procedures.
The businessman said one can
avoid the complicated procedures if he hires others to follow the formalities
for him. There are a lot of companies providing the services of helping set up
new businesses or dissolve enterprises.
T. an officer of such a company,
headquartered in district 1, advised the businessman to dissolve the business,
because the “procedures for dissolving businesses prove to be less complicated
than the ones for bankruptcy.” The businessman was asked to pay 2.5 million
dong for the service package. Especially, T affirmed that his company, which
has close relations with taxation officials, can help companies get the
permissions to reduce tax or delay tax payment.
Under the Enterprise Law,
businesses must pay debts and fulfill other duties before they stop operation
legally. However, most of the enterprises which wanted to go bankrupted or be
dissolved, did not have more money to pay the debts. Therefore, they quietly
stopped operation and disappeared from the market.
A report by the Vietnam Chamber
of Commerce and Industry VCCI showed that by early March 2012, some 1200
businesses in HCM City had disappeared that way.
There are two ways to stop
operation legally, either to registering the dissolution or declaring the
bankruptcy. In order to file for bankruptcy, businesses have to file for
bankruptcy to the court and follow a lot of complicated formalities, which may
take them some years. Therefore, getting dissolved is the choice of many
enterprises which cannot maintain their operation.
A businessman in district 1 in
HCM City said that he needed the consultancy from a law firm to get dissolved.
Though his business was set up just one year ago, which means it has no big
problem relating to tax payment, he still had to pay 200 dollars to the law
firms to get the support in legal procedures.
The loopholes of the law
When a business wants to declare
bankruptcy, it must have written notice to two management agencies, including
the taxation body and local planning and investment department, and inform
about the unsettled debts.
However, many businesses only
informed about the debts they were owing to the State, while hiding other
debts.
According to Lawyer Tran Quang
Thang, in this case, it depends on the businesses’ self-awareness of paying
tax. Meanwhile, this proves to be unfeasible.
“The businesses all try to die in
the way that can bring them the highest possible benefits. They want to quietly
vanish from the sight while no need to pay debts,” Thang said.
because the creditors got
dissolved and left.
Source: Lao dong
Business & Investment Opportunities
Your VietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment