Do the enterprises shut down the branches operation need to notify the Business Registration Office in Vietnam?
Do the enterprises shut down the branches operation need to notify the Business Registration Office in Vietnam? I am searchingg for the regulations on the above issue to shut down the operation of the company branch, please advice.
Pursuant to Article 72 of the Decree No. 01/2021/ND-CP on enterprise registration has the following provisions:
Shutdown of branches, representative offices and business locations
1. Before notifying the shutdown of a branch/representative office/business location, the enterprise or its branch/representative shall fulfill tax liabilities with the relevant tax authority in accordance with regulations of the Law on taxation.
2. Within 10 working days from the date of issue of the decision to shut down a branch/representative office/business location, the enterprise shall send a notification of the shutdown to the Business Registration Office of province where the branch/representative office/business location is situated. In case of shutdown of a branch/representative office, the notification must be enclosed with the resolution or decision and the copy of the minutes of meeting of the Board of Members of the multi-member limited liability company or partnership, or of the Board of Directors of the joint-stock company, or the resolution or decision of the owner of the single-member limited liability company on shutdown of branch/representative office.
3. After receiving the application for shutdown of a branch/representative office/business location, the Business Registration Office shall send information about the shut down branch/representative office/business location to the tax authority. Within 02 working days from the receipt of information from the Business Registration Office, the tax authority shall give its opinions about the fulfillment of tax liabilities by the branch/representative office/business location to the Business Registration Office. Within 05 working days from the receipt of the application for shutdown of the branch/representative office/business location, the Business Registration Office shall perform shutdown of the branch/representative office/business location on the National Enterprise Registration Database if it receives no objections from the tax authority and issue a notification of shutdown of the branch/representative office/business location.
4. The shutdown of an enterprise’s overseas branch/representative office shall comply with the law of the host country. Within 30 working days from the official date of shutdown of an overseas branch/representative office, the enterprise must send a written notification thereof to the Business Registration Office of province where the enterprise is headquartered. The Business Registration Office shall update information about the enterprise on the National Enterprise Registration Database within 03 working days from the receipt of the notification.
Thus, according to the above provisions, when the enterprise terminates the operation of the branch, it is necessary to carry out registration procedures with the tax administration agency and notify the business registration office where the branch is located in Vietnam.
In case your company terminates the operation of the branch without notifying the business registration office where the branch is located, your company may be sanctioned with a fine of between VND 5,000,000 and VND 10,000,000 according to the provisions of Decree 50/2016/ND-CP regulating the sanctioning of administrative violations in the field of planning and investment.
Best Regards!
