A legal health check — a periodic legal review — is a comprehensive “legal health screening” for an enterprise, designed to detect compliance risks early before they turn into disputes or violations. One point must be stated upfront: current law imposes no mandatory obligation on enterprises to conduct periodic legal reviews — this is a voluntary service that enterprises choose for risk-management benefits. This article explains the content, benefits, and cost of an annual legal health check (as of 14 October 2026), plus a notable new development: state support for legal consultancy costs for small and medium-sized enterprises.
1. A legal health check is not a mandatory legal obligation
No legal text currently requires enterprises to conduct an annual legal health check. It is a voluntary service — the enterprise engages a law firm to comprehensively review its legal standing, much like a periodic medical check-up: nobody mandates it, but everyone understands its preventive value.
Any content claiming that “enterprises are legally required to conduct annual legal health checks” is entirely wrong. When working with service providers, enterprises should clearly distinguish mandatory compliance obligations under law (e.g. tax filings, statutory audits where required) from voluntary services like legal health checks.
2. What a legal health check covers
A typical periodic legal review covers:
- Contracts: reviewing standard contracts and contracts under performance — risky clauses, missing provisions, alignment with current regulations;
- Compliance: licenses, business conditions, sector-specific reporting obligations;
- Labor: labor contracts, workplace rules, collective labor agreements, HR management practices;
- Tax: filing and payment obligations, common tax risks;
- Intellectual property: trademark protection status, copyrights, trade secrets;
- Internal governance: charter, resolutions, corporate legal records.
The deliverable is a consolidated report: issues identified, risk levels, and remediation recommendations in priority order.
3. Benefits of an annual review
- Detect early, fix cheaply: a risky contract clause fixed today costs less than a dispute tomorrow;
- Stay ahead of legal changes: the annual review is an opportunity to update on new regulations affecting the enterprise;
- Stronger position with partners and investors: a “clean” legal file is an asset in fundraising and M&A negotiations.
4. Reference cost (not a standard price)
Legal health check fees are agreed under Article 55 of the Law on Lawyers — there is no state price. The market reference for one review round: SME packages around VND 10–15 million per round (market reference), depending on review scope and enterprise size.
To repeat: this is a market reference figure, not a standard price or regulation. The actual cost depends on the scope of work and the agreement with the service provider.
5. New: Decree 18/2026/ND-CP supports legal consultancy costs for SMEs
Decree 18/2026/ND-CP (effective 15 January 2026) provides support for legal consultancy costs for small and medium-sized enterprises (SMEs), with maximum support of VND 3/5/10 million per year depending on enterprise size.
This is significant for SMEs considering a legal health check: part of the cost of engaging legal consultants — including legal review activities — may be supported by the State under this policy. Eligible SMEs should check the conditions and procedures for the support before signing a services contract, to optimize costs.
Frequently asked questions
Must enterprises conduct an annual legal health check?
No. The law imposes no such obligation; it is a voluntary service the enterprise chooses.
How does a legal health check differ from an audit?
An audit reviews financial statements (mandatory in some statutory cases); a legal health check reviews the overall legal standing and is always voluntary.
How much does one review round cost?
The market reference for SME packages is around VND 10–15 million per round; the actual cost is agreed under Article 55 of the Law on Lawyers.
How are SMEs supported with legal consultancy costs?
Under Decree 18/2026/ND-CP (effective 15 January 2026), SMEs receive support for legal consultancy costs of up to VND 3/5/10 million per year depending on enterprise size.
Sources
- No mandatory legal obligation for periodic legal reviews — a legal health check is a voluntary enterprise service.
- Decree 18/2026/ND-CP (effective 15 January 2026) — support for SME legal consultancy costs: up to VND 3/5/10 million per year depending on size.
- Article 55 of the Law on Lawyers — legal service fees are agreed; figures in this article are market reference only.
For reference only; not legal advice. This content was prepared by AI and will undergo quality review by the AI Legal Council of FLAT Law Firm before any publication consideration; it is not the legal opinion of a licensed human lawyer. Laws and regulations may change; verify the current legal texts before applying them.
Does your enterprise want a periodic “legal health screening”? Contact FLAT Law Firm for a suitable review package.
