Step 1: Conduct internal control procedures
a. Perform an asset inventory
The Divided Company conducts an asset inventory by itself.
b. Ratify the Decision on the Partial Division
The Board of Members, the Owner, or General Meeting of Shareholders of the Divided Company shall approve the Partial Division plan and ratify the Decision on the Partial Division of the company.
c. Send announcements to its creditors and personnel
The Divided Company sends its Decision on Partial Division to all creditors and personnel within 15 days from its ratification date.
d. Submit a Tax finalization dossier and fulfill tax obligations
The Divided Company must carry out Tax finalization until there is a Decision on Partial Division. It shall also fulfill its tax obligations (if any).
Step 2: Procedures at the Department of Planning and Investment
a. The New Company applies for enterprise registration
The New Company submits an application for enterprise registration to the Business Registration Authorities.
b. Implement the procedures for changing enterprise registration information
The Divided Company applies to change business registration to the Department of Planning and Investment.
Step 3: Reach an agreement with the Divided Company’s creditors about which company will be responsible for unpaid debts (if any).
Step 4: Transfer assets, adjust business licenses and amend existing contracts
a. Transfer assets
The Divided Company ratifies a Decision about transferring its non-registered property and must request competent authorities to adjust relevant registrations and certificates for the registered property.
b. Adjust business licenses
The Divided Company adjusts its business licenses.
c. Amend existing contracts
The Divided Company specifies in the Decision on Partial Division that the New Company will replace it in all existing contracts. In addition, the Divided Company assents with the other parties in existing contracts that the New Company will re-sign contracts with them.
