Cập nhật DISSOLUTION OF BRANCH IN VIETNAM OF FOREIGN BUSINESSMAN mới nhất

A branch of a foreign trader in Vietnam is a dependent unit of the foreign trader, established and conducting commercial activities in Vietnam following the provisions of Vietnamese law or an international treaty to which the Socialist Republic of Vietnam is a member. These branches are established by foreign traders to expand production business and expand markets in Vietnam. But if these dependent units operate inefficiently, foreign traders often decide to terminate operation (dissolve) them.

Through this article, LVNLAW will present to customers the procedure for terminating branches of foreign traders in Vietnam.

CASE OF TERMINATION OF BRANCH ACTIVITIES

The branch terminates its operation in the following cases:

• Following the request of foreign traders.
• The foreign trader terminates its operation under the laws of the country or territory where establishes or registers its business.
• The term of operation under the branch establishment license expires but the foreign trader does not request an extension.
• The License for Establishment of the Branch expires without the approval of the License-Issuing Authority for an extension.
• The branch establishment license is revoked following the law.
• Foreign traders, branches no longer satisfy one of the conditions for issuance of a branch establishment License.

ORDER AND PROCEDURES FOR SETTLEMENT OF BRANCH TERMINATION

The procedure for branch dissolution must follow the following steps:

Step 1: The foreign trader applies to termination of branch operations directly or by post or online (if applicable) to the licensing agency.

Step 2: Within 03 working days from the receipt of the application, the License-issuing agency shall check and request additional information if the application is incomplete or invalid. The request for additional documents is made at most once during the processing of the application

Step 3: Within 05 working days from the receipt of complete and valid dossiers, the licensing agency is responsible for announcing on its website the termination of the branch’s operation.

Documents include:

• Notice of termination of branch operation;
• A copy of the document of the License-Issuing Authority not to renew the License for Establishment of the Branch (in case the operation period expires under the License for Establishment of the Branch without the License-Issuing Authority agreeing to renew it). A copy of the decision on revocation of the branch establishment license of the licensing agency (in case of the branch establishment license is revoked);
• List of creditors and debts, including tax debts and social insurance contributions;
• The current list of employees and their respective benefits;
• Original License for establishment of the branch.

Note: The foreign trader and the head person of the branch are jointly responsible for the truthfulness and accuracy of the application for the termination of the branch’s operation.

Submit:

Foreign traders submit dossiers to licensing agencies. Following the law, the Ministry of Industry and Trade shall grant, re-grant, adjust, extend and revoke the License to establish a branch and terminate the operation of the branch in case the establishment has not been regulated in specialized legal documents.

OBLIGATIONS RELATED TO THE TERMINATION OF THE BRANCH OF ACTIVITIES

In addition to performing procedures for terminating branch operations, foreign traders and branches must publicly declare the operation termination at the branch’s head office and process other obligations as prescribed by law.

Foreign traders whose branches have ceased to operate are responsible for performing contracts, paying debts, including tax debts, and settling all legal benefits for employees who have worked at the branch according to the law provisions.

Procedures for the dissolution of the branch in Vietnam is complicated, time-consuming, and labor-intensive. Therefore, if you have questions about this procedure or need legal assistance, please don’t hesitate to contact LVNLAW 

LVNLAW LAWFIRM & ACCOUNTING

No. K28, lane 68 Trung Kinh, Yen Hoa ward, Cau Giay district, Hanoi

Hotline: 1900.0191 – 1900.0191 

Email: info@luatlvn.vn