What are the procedures for self-termination of multilevel marketing activities in Vietnam from June 20, 2023?
- In which case will multilevel marketing activities in Vietnam be terminated?
- What are the procedures for self-termination of multilevel marketing activities in Vietnam from June 20, 2023?
- What are the procedures for termination of MLM activities due to expiration or revocation of the multilevel marketing registration certificate in Vietnam?
In which case will multilevel marketing activities in Vietnam be terminated?
Pursuant to the provisions of Article 17 of Decree No. 40/2018/ND-CP stipulating the cases of termination of multi-level marketing activities as follows:
Termination of multi-level marketing activities
1. Cases where multi-level marketing (MLM) activities are terminated:
a) The MLM registration certificate expires without renewal as regulated in Article 14 herein;
b) The MLM company terminates MLM activities at its own will;
c) The MLM registration certificate is revoked by the competent authority.
2. When terminating MLM activities, the MLM company shall:
a) Send a written notification of termination of MLM activities to the Ministry of Industry and Trade of Vietnam, post up the notice thereof at its head office, branches, representative offices and business locations, and on its website;
b) Terminate or finalize MLM contracts and solve benefits for MLM participants in accordance with law regulations on MLM management;
c) Fulfill obligations specified in the decision given by a competent authority on penalties for violations against regulations on MLM activities.
Thus, cases where MLM activities are terminated:
- The MLM registration certificate expires without renewal;
- The MLM company terminates MLM activities at its own will;
- The MLM registration certificate is revoked by the competent authority.
What are the procedures for self-termination of multilevel marketing activities in Vietnam from June 20, 2023?
What are the procedures for 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 enterprise shall submit the Notice of termination of MLM activities to the Ministry of Industry and Trade of Vietnam (in person, online or by post);
Application for termination of MLM activities includes:
- Notification for the termination of MLM activities;
- 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 enterprise registration certificate or the documents with equivalent legal validity;
- 01 original MLM registration certificate;
- 01 copy of decision on termination of MLM activities of the owner for a sole proprietorship or limited liability company with one member; decision and meeting minutes on the termination of MLM 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: Appraisal for the application and confirmation of self-termination of MLM activities
If the application is not satisfactory, the Ministry of Industry and Trade of Vietnam 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 enterprise fails to supplement the application within the time limit or the enterprise is still unsatisfactory, the Ministry of Industry and Trade of Vietnam 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 MLM activities is received, the Ministry of Industry and Trade of Vietnam 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 of Vietnam’s web portal;
What are the procedures for termination of MLM activities due to expiration or revocation of the multilevel marketing registration certificate in Vietnam?
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 MLM activities due to expiration or revocation of the multilevel marketing registration certificate in Vietnam from June 20, 2023 as follows:
Step 1: The enterprise shall submit the Notice of termination of MLM activities to the Ministry of Industry and Trade (in person, online or by post);
Within 30 working days from the date on which the MLM registration certificate expires or is revoked
Application for termination of MLM activities includes:
- Notification for the termination of MLM 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 enterprise registration certificate or the documents with equivalent legal validity;
- 01 original MLM registration certificate.
Step 2: Appraisal for the application and confirmation of termination of MLM activities
If the application is not satisfactory, the Ministry of Industry and Trade 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 enterprise fails to supplement the application within the time limit or the enterprise 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 MLM 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.
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