Termination of operation of representative offices of foreign enterprise. Procedures termination of operation of representative offices of foreign enterprise. Let us learn about this topic with LSX law firm as follow:
Cases, termination conditions of operation of representative offices of foreign enterprise
At the request of foreign traders.
When a foreign trader terminates its operation under the laws of the country; or territory where such trader establishes or registers its business.
The term of operation under the License for Establishment of a Representative Office; or a License for Establishment of a Branch has expired but the foreign trader does not request an extension.
The operation period under the License for Establishment of a Representative Office; or a License for Establishment of a Branch has expired without the approval of the License-Issuing Authority to extend.
The License for Establishment of Representative Offices, License for Establishment of Branches has been revoked.
Foreign traders, representative offices, branches no longer meet one of the statutory conditions.
Procedures for termination of operation of representative offices of foreign enterprise
Dossier 01 set, including:
Firstly, notice of termination of operation of representative offices; and branches made according to the form of the Ministry of Industry and Trade; signed by a competent representative of the foreign trader.
Secondly, copy of the document of the licensing agency not to renew the representative office establishment license; or branch establishment license; or a copy of the decision on revocation of the representative office establishment license or branch establishment license of the Licensing Authority;
Thirdly, list of creditors and unpaid debts, including tax debts and social insurance contributions;
In addition, the current list of employees and their respective benefits;
Also, original License for establishment of representative office, License for establishment of a branch.
Within 03 working days from the date of receipt of the dossier; the licensing agency shall examine and request supplementation if the dossier is incomplete or invalid. The request for additional records is made at most once during the processing of the application.
Within 05 working days from the date of receipt of complete and valid dossiers; the licensing agency shall have to announce on its website the termination of operation of the representative office or branch.
Dissolution of foreign-invested companies:
Before carrying out the procedures for registration of enterprise dissolution; the enterprise must complete the procedures for terminating the operation of its branches; representative offices, and business locations at the Business Registration Office where the branch is located. Representative office, business location.
Cases and conditions for dissolution of representative offices of foreign enterprise
An enterprise is dissolved in the following cases:
End of operation term stated in the company’s charter without a decision on extension;
Accordingly, decision of the business owner, for a private enterprise; of all general partners, for a partnership, of the Members’ Council, of the company owner, for a limited liability company; of the General shareholders’ council for joint-stock companies;
Besides, the company no longer meets the minimum number of members as prescribed by this Law for a period of 06 consecutive months without carrying out procedures for transformation of enterprise type;
The Certificate of Business Registration has been revoked.
Conditions for enterprises to dissolve:
An enterprise may only be dissolved when it ensures payment of all debts and other property obligations and the enterprise is not in the process of settling disputes at court or arbitration.
The relevant manager and the enterprise are jointly and severally liable for the debts of the enterprise.
Order and procedures for dissolution:
Firstly, approving the decision to dissolve the company.
Secondly, publicly announce the dissolution decision.
Thirdly, liquidate assets and pay debts of the company
Moreover, submit dissolution application
Finally, update the legal status of the business in the National Business Registration Database.
Finally, hope this article about Termination of operation of representative offices of foreign enterprise in Vietnam is helpful for you!
As a dependent unit of the company, the Representative Office has no legal status.
According to Clause 1, Article 45 of the Enterprise Law 2020:
Enterprises have the right to set up branches and representative offices in the country and abroad. An enterprise can set up one or more branches and representative offices in a locality according to administrative boundaries.
So there is no limit to the establishment of a representative office.