What are the procedures for companies to conduct self-termination of multilevel marketing activities in Vietnam from June 20, 2023?
- In which case will multi-level marketing activities be terminated?
- What are the procedures for companies to conduct self-termination of multilevel marketing activities in Vietnam from June 20, 2023?
- What are the procedures for termination of multi-level marketing activities due to expiration or revocation of the multi-level marketing registration certificate?
In which case will multi-level marketing activities be terminated?
Pursuant to the provisions of Article 17 of Decree No. 40/2018/ND-CP stipulating the cases of termination of multilevel marketing activities in Vietnam as follows:
Termination of multi-level marketing activities
1. Cases where multi-level marketing activities are terminated:
a) The multi-level marketing registration certificate expires without renewal as regulated in Article 14 herein;
b) The multilevel marketing company terminates multi-level marketing activities at its own will;
c) The multi-level marketing registration certificate is revoked by the competent authority.
2. When terminating multi-level marketing activities, the multilevel marketing company shall:
a) Send a written notification of termination of multi-level marketing activities to the Ministry of Industry and Trade, post up the notice thereof at its head office, branches, representative offices and business locations, and on its website;
b) Terminate or finalize multi-level marketing contracts and solve benefits for multi-level marketing participants in accordance with law regulations on multi-level marketing management;
c) Fulfill obligations specified in the decision given by a competent authority on penalties for violations against regulations on multi-level marketing activities.
Thus, multi-level marketing activities are terminated in the following cases:
- The multi-level marketing registration certificate expires without renewal;
- The multi-level marketing company terminates multi-level marketing activities at its own will;
- The multi-level marketing registration certificate is revoked by the competent authority.
What are the procedures for companies to conduct self-termination of multilevel marketing activities in Vietnam from June 20, 2023?
What are the procedures for companies to conduct self-termination of multilevel marketing activities in Vietnam from June 20, 2023?
Pursuant to the provisions of Clause 1, Article 18 of Decree No. 40/2018/ND-CP (amended and supplemented by Clause 13, Article 1 of Decree No. 18/2023/ND-CP) stipulating the procedures for self-termination of multi-level marketing activities from June 20, 2023 as follows:
Step 1: The company shall submit the Notice of termination of multi-level marketing activities to the Ministry of Industry and Trade (in person, online or by post);
Application for termination of multi-level marketing activities includes:
- Notification for the termination of multi-level marketing activities under form No. 06 provided in the Appendix attached to Decree No. 18/2023/ND-CP;
- Report in accordance with form No. 06a provided in the Appendix attached to this Decree;
- 01 copy of latest change of company registration certificate or the documents with equivalent legal validity;
- 01 original multi-level marketing registration certificate;
- 01 copy of decision on termination of multi-level marketing activities of the owner for a sole proprietorship or limited liability company with one member; decision and meeting minutes on the termination of multi-level marketing activities of the members’ council for a limited liability company with two or more members; decision and meeting minutes of the general shareholders for a joint stock company; partners’ in a partnership.
Step 2: Appraise documents and confirm termination of multi-level marketing activities
If the application is not satisfactory according to Point a of this Clause, the Ministry of Finance shall issue a request for supplementation of the application within 10 working days from the day on which the application is received.
The time limit for supplementation is 15 working days from the day on which the request is received.
In case the company fails to supplement the application within the time limit or the company is still unsatisfactory, the Ministry of Industry and Trade shall issue a written notice of the return of the application and provide explanation.
Within 10 working days from the date on which the application to terminate multi-level marketing activities is received, the Ministry of Industry and Trade shall issue a document confirming the receipt of the application, notify provincial Departments of Industry and Trade nationwide by one of the methods provided in clause 5 Article 10 of this Decree and publish information on the Ministry of Industry and Trade’s web portal;
What are the procedures for termination of multi-level marketing activities due to expiration or revocation of the multi-level marketing registration certificate?
Pursuant to the provisions of Clause 2, Article 18 of Decree No. 40/2018/ND-CP (amended and supplemented by Clause 13, Article 1 of Decree No. 18/2023/ND-CP) stipulating the procedures for termination of multi-level marketing activities due to expiration or revocation of the multi-level marketing registration certificate from June 20, 2023 as follows:
Step 1: Within 30 working days from the date on which the multi-level marketing registration certificate expires or is revoked, the company shall submit the Notice of termination of multi-level marketing activities to the Ministry of Industry and Trade (in person, online or by post);
Application for termination of multi-level marketing activities includes:
- Notification for the termination of multi-level marketing activities under form No. 06 provided in the Appendix attached to Decree No. 18/2023/ND-CP;
- Report in accordance with form No. 06a provided in the Appendix attached to Decree No. 18/2023/ND-CP;
- 01 copy of latest change of company registration certificate or the documents with equivalent legal validity;
- 01 original multi-level marketing registration certificate.
Step 2: Appraise documents and confirm termination of multi-level marketing activities
If the application is not satisfactory according to Point a of this Clause, the Ministry of Finance shall issue a request for supplementation of the application within 10 working days from the day on which the application is received. The time limit for supplementation is 15 working days from the day on which the request is received.
In case the company fails to supplement the application within the time limit or the company is still unsatisfactory, the Ministry of Industry and Trade shall issue a written notice of the return of the application and provide explanation.
Within 10 working days from the date on which the application to terminate multi-level marketing activities is received, the Ministry of Industry and Trade shall issue a document confirming the receipt of the application, notify provincial Departments of Industry and Trade nationwide and publish information on the Ministry of Industry and Trade’s web portal.
Decree No. 18/2023/ND-CP takes effect from June 20, 2023.
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