What are regulations on documentation and procedures for establishment of charity center in Vietnam?

What are regulations on documentation and procedures for establishment of charity center in Vietnam?

Currently, there is no regulations on "charity center".

However, we would like to provide you with regulations in the Decree 93/2019/NĐ-CP prescribing organization and operation of social and charity funds. Pursuant to Clause 3 Article 4 of the Decree 93/2019/NĐ-CP stipulating as follows:

Charity fund means a fund that is organized and operates on a not-for-profit basis with the aims of supporting the remedy of difficulties caused by disasters, conflagrations, epidemics or accidents and other disadvantaged persons in need of social assistance.

Pursuant to Article 15 of the Decree 93/2019/NĐ-CP stipulating application for establishment of funds as follows:

Application for establishment of funds

1. 01 set of application for fund establishment shall be made and sent to the competent authority defined in Article 18 hereof.

2. An application for fund establishment comprises:

a) An application form for fund establishment;

b) The draft charter of the fund;

c) The written commitment on asset contribution made by the fund’s founding members or documentary evidences of assets contributed to the fund as prescribed in Article 14 hereof;

d) CVs and criminal records of members of the fund founding board and documents prescribed in Article 11, Article 12 or Article 13 hereof. If a founding member is subject to the management of a competent authority, a written approval from such competent authority must be submitted according to regulations on management of officials;

dd) Documents indicating the appointment of title holders of the fund founding board;

e) Documents certifying the planned head office of the fund.

As regulations above, the application for charity fund establishment comprises:

- An application form for fund establishment;

- The draft charter of the fund;

- The written commitment on asset contribution made by the fund’s founding members or documentary evidences of assets contributed to the fund as prescribed in Article 14 of the Decree 93/2019/NĐ-CP;

- CVs and criminal records of members of the fund founding board and documents prescribed in Article 11, Article 12 or Article 13 of the Decree 93/2019/NĐ-CP.

If a founding member is subject to the management of a competent authority, a written approval from such competent authority must be submitted according to regulations on management of officials;

- Documents indicating the appointment of title holders of the fund founding board;

- Documents certifying the planned head office of the fund.

What are contents of a charity fund's charter in Vietnam?

Pursuant to Article 16 of the Decree 93/2019/NĐ-CP stipulating as follows:

A fund’s charter must include, inter alia, the following contents:
1. The fund’s name, address, telephone number, fax number, email and website (if any).

2. The fund’s operation objectives, fields and scope.

3. Information on the fund’s founding members.

4. The fund’s functions, tasks and powers.

5. The fund’s legal representative, its organization and operation, organizational structure, tasks and powers of its Management Council, Control Board, chairman, director and other leading position holders.

6. Principles of fundraising and receipt and use of donations.

7. Management and use of the fund’s assets and finances.

8. Responsibility to report on the fund’s organization, operation and financial issues to competent authorities.

9. Commendation and reward, discipline and settlement of internal complaints/denunciations and actions against violations committed during the fund’s operation.

10. Consolidation, merger, full/partial division, renaming and dissolution of the fund.

11. Procedures for amending the fund’s charter.

12. Other contents as prescribed by law.

Which bodies have authority to settle charity fund-related procedures in Vietnam?

Pursuant to Article 18 of the Decree 93/2019/NĐ-CP stipulating as follows:

Authority to settle fund-related procedures

1. The Minister of Home Affairs is competent to issue establishment licenses and written acknowledgements of charters; give approval for consolidation, merger, full/partial division, dissolution or renaming of funds; suspend the operation of funds for fixed periods; give approval for the resumption of operation of funds after fixed-period suspension; certify funds’ eligibility for operation; certify members of funds’ Management Councils; give approval for modification of or re-issue establishment licenses; give approval for expansion of operation scope and development/conversion of funds; revocation of establishment licenses with regard to:

a) Funds operating nationwide or in more than one province;

b) Funds established with asset contribution by foreign and Vietnamese citizens and organizations and operating within a province.

2. Chairpersons of provincial-level People’s Committees are competent to:

a) issue establishment licenses and written acknowledgements of charters; give approval for consolidation, merger, full/partial division, dissolution or renaming of funds; suspend the operation of funds for fixed periods; give approval for the resumption of operation of funds after fixed-period suspension; certify funds’ eligibility for operation; certify members of funds’ Management Councils; give approval for modification of or re-issue establishment licenses; give approval for expansion of operation scope and development/conversion of funds; and revocation of establishment licenses of funds operating within a province;

b) Funds established with asset contribution by foreign and Vietnamese citizens and organizations and operating within a district or commune.

As regulations above, the Minister of Home Affairs and Chairpersons of provincial-level People’s Committees have authority to settle charity fund-related procedures in Vietnam.

Best regards!