Our comprehensive legal solution helps foreign investors complete project closure procedures in full compliance with Vietnamese law, while thoroughly handling tax, labor, and asset liquidation obligations. We are committed to a transparent process and support investors in legally remitting profits and investment capital overseas after the project is terminated.
- Free review of tax and customs obligations
- Drafting of termination decisions and asset liquidation documents
- Representation in explanations with the investment registration authority and tax authority
- Advisory on labor contract termination procedures
- Support for lawful outward remittance of capital
What Do You Receive from MGI Consulting’s Project Termination Service?
We act as your legal representative, helping investors handle complex administrative procedures accurately and in compliance with the law.
Legal Consultation and Dossier Review — Free
We review the project’s tax, customs, and social insurance status. We also assess outstanding financial obligations and propose a handling plan before the official application is submitted.
Termination Dossier Preparation and Standardization
We prepare a complete legal dossier, including the decision on project termination, asset liquidation plan, debt settlement plan, and employee list.
Representation Before State Authorities
We carry out procedures with multiple competent authorities, including the Department of Finance for returning the Investment Registration Certificate, the tax authority for tax finalization and tax code closure, the police authority for returning the company seal where applicable, and the General Department of Customs for confirmation of no outstanding customs tax liabilities.
Asset Liquidation and Capital Remittance Advisory
We provide guidance on asset valuation and liquidation for the project. We also support procedures with commercial banks so that investors can remit remaining capital and profits overseas after all financial obligations in Vietnam have been completed.
MGI Consulting’s 6-Step Process for Project Termination Services
Step 1: Obligation Review and Settlement Planning
We review all outstanding obligations, including tax debts, insurance liabilities, and customer-related obligations. We then prepare a debt settlement plan and a labor handling plan.
Step 2: Termination Decision and Notification
The investor issues a decision on project termination. A termination notice is then submitted to the investment registration authority within the statutory deadline.
Step 3: Termination Procedure with the Investment Registration Authority
We submit the application for termination of the investment project. The investment registration authority revokes the Investment Registration Certificate and issues a notice of project termination.
Step 4: Tax Finalization and Tax Code Closure
This is the most important step. We work with the tax authority to finalize tax figures, settle any outstanding tax liabilities where applicable, and obtain confirmation that tax obligations have been completed before the tax code is closed.
Step 5: Company Seal Return and Public Disclosure
We return the company seal to the police authority where applicable and complete the required public disclosure of project termination or company dissolution in accordance with regulations.
Step 6: Account Closure and Capital Remittance Overseas
We liquidate the company’s bank accounts in Vietnam and carry out procedures to remit the remaining capital and assets overseas to the investor.
Frequently Asked Questions About Investment Project Termination
Q1: How long does it take to complete the project termination procedure?
This procedure usually takes much longer than setting up a new project. In practice, it often takes 3 to 6 working months, mainly depending on the timeline for tax finalization and customs obligation verification.
Q2: Will investors be penalized for voluntarily terminating a project?
No. The law allows investors to decide to terminate their project voluntarily. However, if the project is terminated before all financial obligations are completed, such as tax debts or unpaid wages, the investor remains responsible for settling those obligations in full.
Q3: Can I remit funds overseas before the termination decision is issued?
In principle, no, with respect to investment capital. Banks generally only allow final remittance of investment capital and profits overseas when the enterprise provides confirmation of completed tax obligations and a project termination document issued by the competent state authority.
Q4: Can the legal representative be held personally liable?
Yes. Under regulations, the legal representative and company owner are responsible for the truthfulness and accuracy of the dissolution or termination dossier. If tax evasion or fraud is discovered after termination, the relevant individuals may still be held liable.
Q5: How should duty-exempt imported machinery be handled?
If the project imported machinery to create fixed assets and received import duty exemption, the enterprise must declare a change of use purpose and pay import duty based on the remaining value of the assets upon project termination. Alternatively, the enterprise may carry out re-export procedures to send the assets back overseas.
Q6: Can investors leave Vietnam without completing the project termination procedure?
Absolutely not. If investors leave without legally completing the termination procedure:
The company may be placed on the tax authority’s blacklist.
The legal representative may be restricted from leaving Vietnam or entering Vietnam in the future.
The investor may be unable to establish a new project or conduct commercial transactions in Vietnam later.