Procedures for terminating the executive office in a foreign investor’s BCC contract in Vietnam and things to know will be shared by fdiinvietnam.com in this article.
The executive office of a foreign investor established under a BCC contract has similarities to a company in Vietnam. When the executive office can no longer operate, it must be dissolved or, in other words, terminated.
So what are the documents and procedures? The following article fdiinvietnam.com will share with you detailed information on regulations and procedures for terminating the operations of foreign investors’ executive offices.
When does the termination of the executive office occur?
To carry out business activities, foreign investors signing a cooperation contract under a BCC contract will be allowed to establish an executive office in Vietnam to directly manage and operate the investment project activities in the BCC contract.
However, after completing the project in the BCC contract, the executive office no longer has a purpose to operate. At that time, the executive office of the foreign investor must cease its operations.
Documents for terminating the operation of foreign investor’s executive office
The notification file for termination of executive office operations includes:
- Decision to terminate the operation of the executive office in case the executive office terminates its operation before the term;
- List of creditors and debts paid;
- List of employees of the executive office, rights and benefits of employees have been resolved;
- Confirmation from the tax authority that the executive office has fulfilled its tax obligations;
- Confirmation from the social insurance agency that the executive office has fulfilled its social insurance obligations;
- Certificate of registration of executive office activities;
- Copy of investment registration certificate;
- Copy of BCC contract.
>> FREE DOWNLOAD: Form AI10 – Decision to terminate the operation of the executive office.
Procedures for terminating executive office operations
Pursuant to Article 50 of the Investment Law 2020, the procedure for terminating the operation of a foreign investor’s executive office is as follows:
- From the date of the decision to terminate the executive office, within 7 working days, the foreign investor must submit a notification dossier to the investment registration agency where the executive office is located;
- Then, from the date of receiving the dossier in accordance with legal regulations, within 15 days, the competent investment registration authority shall decide to revoke the certificate of registration of the executive office.
>> See more: Procedures for establishing a foreign investor’s executive office.
Notes when carrying out procedures to terminate the operations of the executive office
When terminating the operation of a foreign investor’s executive office, it must be done within the deadline (7 working days) and the notification must be submitted to the correct authority as prescribed.
In case of terminating the operation of the executive office of a foreign investor in a BCC contract without notifying the investment registration agency where the executive office is located, the investor will be fined from VND 30,000,000 to VND 50,000,000 and must notify the investment registration agency (according to the provisions of Point c Clause 2 and Point d Clause 3 Article 15 Decree 122/2021/ND-CP).
The dossier for notification of termination of operations of the executive office must be fully and carefully prepared according to the provisions of Clause 2, Article 50 of the Investment Law 2020, to avoid errors that require multiple adjustments, leading to loss of time.
Some questions about the procedure for terminating the operation of the executive office
1. When will the foreign investor’s executive office cease to operate?
When the project in the BCC contract is completed, the executive office will no longer have a purpose to operate. At that time, the executive office of the foreign investor must cease its operations.
2. When terminating the operation of the executive office, does the investor need to notify?
Yes. From the date of the decision to terminate the executive office, within 7 working days, the foreign investor must submit a notification dossier to the investment registration agency where the executive office is located.
3. How long does it take to resolve the termination of an executive office?
From the date of receipt of the application in accordance with legal regulations, within 15 days, the competent investment registration authority shall decide to revoke the certificate of registration of the executive office.
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