Procedure for registering assistance for artels, cooperatives, and cooperative unions in Vietnam

Procedure for registering assistance for artels, cooperatives, and cooperative unions in Vietnam (Image from internet)

On October 11, 2024, the Ministry of Planning and Investment issued Decision 2373/QD-BKHDT announcing new administrative procedures in the field of support for artels, cooperatives, and cooperative unions under the management functions of the Ministry of Planning and Investment.

Procedure for registering assistance for artels, cooperatives, and cooperative unions in Vietnam

(1) Execution Sequence:

A artel, cooperative, or cooperative alliance shall submit 01 set of Registration Documents for support needs to the People's Committee of the commune where the cooperative has a transaction address, or where the artel, cooperative alliance has its headquarters.

(2) Method of Implementation:

The registration application is sent to the People's Committee of the commune through one of the following methods:

- Direct submission;

- Through public postal services;

- Online via the National Information System for Cooperatives (when completed) / National Public Service Portal.

(3) Composition of the application:

* The registration application for support needs includes:

- Application form for support needs which includes a commitment not to violate the prohibited acts as stipulated in Clause 2, Article 7 of the Cooperative Law 2023, not during the enforcement of a legally effective criminal judgment of the Court in accordance with Form No. 01 in the appendix issued with Decree 113/2024/ND-CP;

- Copies of relevant documents and applications indicating compliance with benefit criteria as prescribed:

For cooperatives, cooperative unions:

- Documents proving that the cooperative or cooperative alliance meets one (mandatory) or more (if any) of the following criteria: an increase in the number of members in two consecutive years prior to the year of filing for support; an increase in the internal transaction value rate in the year preceding the application; a higher rate of undivided common fund formation compared to the minimum stipulated in Article 84 of the Cooperative Law 2023 in the year preceding the support application; increase in the value of undivided common assets in the year prior to application; at least 5% of total members or employees having participated in educational, training, dissemination, knowledge enhancement, and training courses organized by the artel, cooperative alliance, or other agencies, organizations, and certified course participation or have a list of members, employees attending courses with the seal of the artel, cooperative alliance (for courses organized by the artel, cooperative alliance themselves, they must have course organizing plans, course content, and participant lists signed) up to the year prior to the support application; established for no more than 36 months in economically or socially challenged areas according to investment law up to the point of filing for support;

- In the case where a cooperative or cooperative alliance applies for state budget support of 3 billion dong or more, there must be an audited financial report for the previous year by an independent auditing firm at the time of filing for support needs.

For artels:

- Copy of Certificate of artel Registration;

- Documents proving the artel meets one (mandatory) or multiple criteria (if any), specifically: an increase in the number of members for two consecutive years prior to the application; at least 5% of total members or employees having participated in educational, training, dissemination, knowledge enhancement, and training courses organized by the artel or other agencies, organizations, and certified course participation or a list of members, employees attending courses signed by the artel (for courses organized by the artel themselves, they must have course organizing plans, course content, and participant lists signed) up to the year prior to the application; established for no more than 36 months in economically or socially challenged areas according to investment law up to the point of filing for support;

The artel, cooperative, and cooperative alliance are responsible before the law for the accuracy and truthfulness of the information provided in the support need registration application mentioned above.

(4) Number of applications:

01 set of applications.

(5) Processing Time:

10 working days from receipt of valid application.

(6) Implementing Agency:

- Implementing Agency: People's Committee at the commune level

No later than 10 days from receipt of the application, the commune-level People’s Committee shall notify the artel, artel, cooperative union of the receipt of the application in accordance with Form No. 02 in the appendix issued with Decree 113/2024/ND-CP.

- Authorized Decision-Making Agencies:

+ People's Committee at the commune level;

+ People's Committee at the district level.

(7) Subjects for administrative procedures:

- Artel;

- Cooperative alliance;

- Cooperative union.

(8) Result of the administrative procedure execution:

Notification to the artel, cooperative, or cooperative alliance

(9) Fees: No fee is collected.

(10) Name of Application Form, Declaration Form:

- Application form for support needs in accordance with Form No. 01 in the appendix issued with Decree 113/2024/ND-CP;

- Notification of receipt of registration application for the support needs of the artel/cooperative/alliance in accordance with Form No. 02 in the appendix issued with Decree 113/2024/ND-CP.

(11) Requirements and conditions for procedure implementation:

- Cooperatives, cooperative unions are considered for policy benefits when:

+ Not in the period of enforcing an administrative handling decision due to violation of the prohibited acts stipulated in Clause 2, Article 7 of the Cooperative Law 2023; not during the enforcement of a valid criminal sentence of the Court;

+ Meet one of the following criteria at the point of filing for support: member count increase in the two consecutive years prior to file for support; internal transaction value rate increase in the year prior to filing; higher undivided common fund formation rate compared to the minimum stipulated in Article 84 of the Cooperative Law 2023 in the year preceding the filing; growth in undivided common asset value in the year before filing; at least 5% of total members, employees engaged in educational, training events organized by the artel, cooperative alliance, or other entities and certified on course participation or having attendance lists signed by the artel, cooperative alliance (for courses self-organized, they must have plans, course content, signed participant lists) till the year before the filing; setup for no more than 36 months in challenged socio-economic areas as per investment law until filing;

+ For cooperatives, cooperative unions applying for state budget support of 3 billion dong or more, an audited financial statement of the prior year by an independent auditor at the time of filing for support is mandatory.

- Cooperatives are considered for policy benefits when:

+ Holding a Certificate of Cooperative Registration;

+ Not in the period of enforcing an administrative handling decision for prohibited acts under Clause 2, Article 7 of the Cooperative Law 2023;

+ Fulfill one criterion at filing time for support needs: member count growth over two straight years before application; at least 5% member, employee course participation organized by cooperative or other institutes, with verified completion or attendance lists with cooperative's signature (for self-organized courses, plans, contents, signed lists required) till year before filing; established within 36-month jurisdiction in challenged areas as investment law to filing.

More details can be found in Decision 2373/QD-BKHDT which comes into force in Vietnam from November 1, 2024.

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