Procedure for compulsory dissolution of cooperatives and cooperative unions in Vietnam

Procedure for compulsory dissolution of cooperatives and cooperative unions in Vietnam (Image from Internet)

Procedure for compulsory dissolution of cooperatives and cooperative unions in Vietnam

On July 18, 2024, the Government of Vietnam issued Decree 92/2024/ND-CP regarding the registration of artels, cooperatives, and cooperative unions. The sequence and procedures for compulsory dissolution registration for cooperatives and cooperative unions are stipulated in Article 50 of Decree 92/2024/ND-CP as follows:

(1) Within 03 working days from the date of issuing the decision to revoke the Certificate of Cooperative Registration or receiving the Court's dissolution decision that has taken legal effect, the district-level business registration authority shall:

- Publish the decision to revoke the Certificate of Cooperative Registration or the Court's dissolution decision that has taken legal effect on the National Enterprise Registration Portal; announce the status of cooperatives and cooperative unions undergoing dissolution procedures, the status of branches, representative offices, and business locations undergoing cessation procedures on the National Enterprise Registration Portal, except in cases where cooperatives and cooperative unions have their Certificate of Cooperative Registration revoked at the request of the tax administration authority;

- Change the legal status of the cooperative and cooperative union to "undergoing dissolution procedures"; change the legal status of branches, representative offices, and business locations to "undergoing cessation procedures" in the Cooperative Registration Database;

- Send information regarding the dissolution of the cooperative, cooperative union, and cessation of operations of branches, representative offices, and business locations to the tax authority.

(2) Within 05 working days from the date of settling all debts and fulfilling tax obligations, the legal representative of the cooperative or cooperative union must submit a dissolution registration dossier to the district-level business registration authority where the head office is located. The dossier, sequence, and procedures for dissolution registration shall comply with provisions in clauses 2, 3, and 4 of Article 50 of Decree 92/2024/ND-CP.

(3) After a period of 06 months from the date the district-level business registration authority announces the status of cooperatives and cooperative unions undergoing dissolution procedures on the National Enterprise Registration Portal, if no dissolution registration dossier for the cooperative or cooperative union, cessation dossier for branches, representative offices, and business locations, or written objections from the tax administration authority or other organizations, individuals, and related parties are received, the district-level business registration authority will change the legal status of the cooperative, cooperative union, branches, representative offices, and business locations in the Cooperative Registration Database to "dissolved" or "ceased operations" and simultaneously issue a notification of the dissolution of the cooperative, cooperative union, and cessation of operations of branches, representative offices, and business locations within 03 working days from the end of the aforementioned period.

Decree 92/2024/ND-CP takes effect in Vietnam from the date of signing promulgation.

Tran Trong Tin

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