From June 20, 2023: Will an MLM company in Vietnam failing to satisfy the conditions for carrying out MLM activities have its certificate of registration of MLM activities in a province revoked?
- From June 20, 2023: Will an MLM company in Vietnam failing to satisfy the conditions for carrying out MLM activities have its certificate of registration of MLM activities in a province revoked?
- What are the procedures for revocation of certificate of registration of MLM activities in a province of Vietnam?
- If an MLM company in Vietnam has its certification revoked, shall its MLM activities be terminated?
From June 20, 2023: Will an MLM company in Vietnam failing to satisfy the conditions for carrying out MLM activities have its certificate of registration of MLM activities in a province revoked?
Pursuant to the provisions of Clause 1, Article 23 of Decree 40/2018/ND-CP (supplemented by Clause 17, Article 1 of Decree 18/2023/ND-CP) as follows:
Revocation of certificate of registration of multi-level marketing activities in a province
1. The Provincial Department of Industry and Trade shall revoke the certificate of registration of MLM activities in a province in the following cases:
a) There are falsified documents included in the application for registration of MLM activities in a province;
b) The MLM company fails to carry out MLM activities in the registered province for a consecutive period of 12 months;
c) The MLM company fails to fulfill its responsibility specified in Clause 11 Article 40 herein;
d) Its MLM registration certificate is revoked by a competent authority.
dd) The enterprise does not fully satisfy the conditions for carrying out MLM activities in the province according to Clause 2 Article 20 of this Decree.
At the same time, according to Clause 2, Article 20 of Decree 40/2018/ND-CP (amended and supplemented by Clause 14, Article 1 of Decree 18/2023/ND-CP) as follows:
Registration of multi-level marketing activities in a province
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2. If the enterprise does not have the head office, any branch, representative office or business location in the province, the enterprise shall assign a person who resides in such province to act as the enterprise's business contact in such province to work with local authorities in the province. The enterprise's business contact shall satisfy the following conditions:
a) He/she does not fall into any of the cases specified in Point a Clause 2 Article 28 of this Decree;
b) He/she has obtained the certificate on knowledge in accordance with Article 38 of this Decree;
c) He/she is authorized by the enterprise to work, provide information and documents about the enterprise's MLM activities in the province at the request of MLM authorities.
According to the above regulations, from June 20, 2023, businesses that do not meet the conditions for local multi-level marketing activities will have their confirmation of registration of multi-level marketing activities revoked.
Conditions for local multi-level sale activities are as follows:
- If the enterprise does not have the head office, any branch, representative office or business location in the province, the enterprise shall assign a person who resides in such province to act as the enterprise's business contact in such province to work with local authorities in the province
- The enterprise's business contact shall satisfy the following conditions:
+ He/she does not fall into any of the cases specified in Point a Clause 2 Article 28 of this Decree;
+ He/she has obtained the certificate on knowledge in accordance with Article 38 of this Decree;
+ He/she is authorized by the enterprise to work, provide information and documents about the enterprise's MLM activities in the province at the request of MLM authorities.
From June 20, 2023: Will an MLM company in Vietnam failing to satisfy the conditions for carrying out MLM activities have its certificate of registration of MLM activities in a province revoked? (Image from the Internet)
What are the procedures for revocation of certificate of registration of MLM activities in a province of Vietnam?
Pursuant to the provisions of Article 23 of Decree 40/2018/ND-CP (added by Clause 17, Article 1 of Decree 18/2023/ND-CP) stipulating procedures for revocation of sales registration confirmation local multi-level as follows:
Step 1: Within 10 working days from the date on which the decision on revocation of the certificate of registration of MLM activities in a province becomes effective, the Provincial Department of Industry and Trade shall publish information concerning such revocation on its website and inform the Ministry of Industry and Trade of such revocation by one of the modes specified in Clause 5 Article 10 herein.
Step 2: The certificate of registration of MLM activities in a province shall be no longer effective from the date on which the decision on revocation becomes effective.
Step 3: Within 30 days from the effective date of the decision on revocation, the MLM company shall carry out procedures for termination of MLM activities in such province under regulations in Article 24 herein.
Step 4: The Provincial Department of Industry and Trade shall not re-issue the certificate of registration of MLM activities in a province:
- within 06 months from the effective date of the decision on revocation if the MLM company has its certificate of registration of MLM activities revoked because of the reason specified in Point b Clause 1 of this Article,
- or within 12 months if the MLM company has its certificate of registration of MLM activities revoked because:
+ There are falsified documents included in the application for registration of MLM activities in a province;
+ The MLM company fails to fulfill its responsibility specified in Clause 11 Article 40 of Decree 40/2018/ND-CP.
If an MLM company in Vietnam has its certification revoked, shall its MLM activities be terminated?
Pursuant to the provisions of Clause 1, Article 24 of Decree 40/2018/ND-CP, as follows:
Termination of multi-level marketing activities in a province
1. Cases where MLM activities in a province are terminated:
a) The MLM company has its certificate of registration of multi-level marketing activities in a province revoked;
b) The MLM company terminates MLM activities in such province at its own will.
According to the above provisions, if the MLM company has its certificate of registration of multi-level marketing activities in a province revoked, the MLM activities in the province are also terminated
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