In today's rapidly developing economy, researching the operational status of businesses has become a crucial step for many individuals and organizations, requiring considerable skill. However, not everyone fully understands the risks that inadequate or inaccurate research can entail.
This article will help you better understand these risks and guide you on how to avoid these unnecessary dangers.
Difficulty in finding reliable sources of information.
Many businesses lack transparency in providing financial, accounting, and business information. Furthermore, the data provided may be incomplete, inaccurate, or not regularly updated, making assessment and verification difficult.
The operational status of a business can be likened to the health status of a person, reflecting the business's existence and development in the eyes of the law. Every business, from its establishment to its cessation of operations, goes through different stages. According to Article 41 of Decree 01/2021/ND-CP on business registration, a business may fall into one of the following legal statuses:
- [1] Temporarily suspend business: This refers to the legal status of a business that is currently undergoing a temporary suspension of operations as stipulated in Clause 1, Article 206 of the Enterprise Law.
- [2] No longer conducting business at the registered address: This refers to the legal status of a business where, through inspection and verification by the Tax Authority and related units, the business cannot be located at the registered address. The Business Registration Authority records and updates the legal status provided by the Tax Authority into the National Database of Business Registration.
- [3] Business registration certificate revoked due to tax management enforcement: This refers to the legal status of a business whose Business Registration Certificate is revoked by the Business Registration Office at the request of the tax authority as part of enforcement measures to implement administrative decisions on tax management.
- [4] Undergoing dissolution procedures, divided, merged, or acquired: is the legal status of a business.
-
- There has been a resolution or decision to dissolve the enterprise in accordance with Clause 3, Article 208 of the Enterprise Law; the enterprise has had its Certificate of Business Registration revoked by the Business Registration Office, except in cases where the revocation is due to enforcement measures related to tax management;
- The enterprise was dissolved by a court decision in accordance with Clause 1, Article 209 of the Enterprise Law;
- Businesses that have been divided, merged, or acquired are in the process of settling accounts and transferring tax obligations with the Tax Authority as a result of the division, merger, or acquisition.
- [5] In the process of bankruptcy proceedings: This refers to the legal status of a business that has received a court decision to initiate bankruptcy proceedings in accordance with bankruptcy law.
- [6] Dissolved, bankrupt, ceased to exist: is the legal status of a business.
-
- The dissolution procedures have been completed in accordance with regulations and the Business Registration Office has updated the legal status in accordance with Clause 8, Article 208 and Clause 5, Article 209 of the Enterprise Law;
- The business has been declared bankrupt by the Court in accordance with the law on bankruptcy;
- Enterprises cease to exist due to division, merger, or acquisition in accordance with Clause 5 of Article 198, Clause 5 of Article 200, and Clause 4 of Article 201 of the Enterprise Law.
- [7] Active: This refers to the legal status of a business that has been granted a Business Registration Certificate but does not fall under the legal statuses mentioned above.
Consequences of incomplete or flawed assessment of a business's operational status.
If you don't thoroughly investigate the operational status of a business, you may face several serious risks. First, the misassessing operational status Trying to contact a business that has ceased operations or is suspended can waste your time and money.
Secondly, when you Investing in a business that is struggling to stay afloat.This carries a high risk of not being paid on time or losing your investment if the business goes bankrupt.
Finally, the risk to reputation and credibility is also very high when collaborate with a business that A history of frequent changes in legal representatives, frequent relocation of business premises, or multiple changes in operating status are all considered... Signs of instability.
Failing to identify and utilize reliable sources of information.
Using inaccurate and unreliable information will expose investments or strategic planning to future risks.
When inaccurate data infiltrates the decision-making process, individuals and businesses may arrive at perceptions or conclusions that are not true to reality, contributing to unnecessary potential risks.
A guide on how to check the operational status of your business - Easy and effective.
Use the National Business Registration Portal or the General Department of Taxation's electronic portal: These are reliable sources for looking up information about the business's operational status, legal representative, and other details.
Method 1: Look up dissolved businesses on the National Electronic Portal for Business Registration.
Step 1: Go to National online portal for business registration.
Step 2: Enter the business name or business tax code into the search bar to look up the business's status information.
Method 2: Look up the business location of the enterprise through the Vietnam General Department of Taxation's website.
Step 1: Visit the page Taxpayer information lookup of the General Department of Taxation's electronic portal.
Step 2: Customers click on the Company Name displayed in the Information Lookup Table.
Step 3: The search results will be displayed as shown in Image 5. Please select "Representative Office" is located in the bottom right corner of the screen.
Step 4: The search results will be displayed as shown in Image 6 below.
Checking a company's operational status is a crucial step in enhancing transparency, accountability, regulatory compliance, process optimization, and cost savings, thereby improving the efficiency of business transactions. Adherence to legal regulations and industry standards is how businesses and individuals ensure the building of a strong and lasting reputation.
By conducting thorough research, you can avoid many risks, help stakeholders understand the business situation, and protect your interests. Don't let complacency and carelessness hinder your progress towards success.