There are several differences between dissolution and

bankruptcy due to their distinctive characteristics. Firstly, it is

about the reason to stop operating a company. Bankrupcy
happens when corporations cannot pay their own debt or fail
to meet the debt liability after 3 months from the maturity
date, while dissolution involves different criterias, including
shortage of number of required employees or the operation
duration stated in the company charter expires. Secondly, the
government authorities in charge of each subject are varied. In
particular, dissolution is an administrative procedure, operating
under the supervision of business registration authority.
Moreover, in case of voluntary liquidation, company’s
leadership is not willing to continue operating, however,
compulsory winding-up occurs when corporations cannot
satisfy specific requirements which have been stipulated in
Law. This liquidations is often regulated by the court. In
contrast, bankruptcy is special debt collection procedure that
can be refered as a judicial procedure, which is more
complicated and require more processing time than
dissolution . At third, legal consequence of dissolution is
termination of operation, whereas in terms of being purchased
and altered the company’s owner , it is possible for the
corporation to continue its activities and fully recovered even
after filing the bankruptcy process. Finally, dissolution of
enterprise receive no sanction and still be able to establish
another business. Oppositely, there are more arduous
punishment on the situation of bankruptcy.
For example, President, director or member of the board of
directors of entirely state-owned enterprise are prohibited to
hold any position of other state enterprises. In conclusion, the