Procedures for shutting down an artel in Vietnam

Procedures for shutting down an artel in Vietnam (Internet image)

Procedures for shutting down an artel in Vietnam

an artel is an organization without legal personality, formed based on a cooperation contract voluntarily established by at least 02 members, contributing capital, labor to perform certain work, and sharing benefits and responsibilities. Article 63 of Decree 92/2024/ND-CP prescribes the dossier, order, and procedure for shutting down an artel in Vietnam as follows:

- Step 1: Within 07 working days from the date of approving the termination of the artel's activities, the artel sends the minutes of the artel members' meeting on the termination of the artel's activities, along with the debt settlement plan (if any), to the district-level business registration agency where the artel is headquartered. The debt settlement plan must include the creditor's name, address; debt amount, term, location, and method of debt repayment; method and deadline for settling creditor complaints.

- Step 2: Within 03 working days from the date of receiving the documents specified in step 1, the district-level business registration agency must publish these documents and notify the status of the artel undergoing termination procedures on the National Business Registration Portal, change the legal status of the artel in the Cooperative Registration Database to the status of undergoing termination procedures, and send information about the termination of the artel's activities to the tax authority. The artel completes tax obligations with the tax authority according to the provisions of the Law on Tax Administration.

- Step 3: Within 05 working days from the date of payment of all debts and obligations arising during the operation of the artel, the artel submits a dossier for termination of activities to the district-level business registration agency where the artel is headquartered. The dossier for termination of activities includes the following documents:

+ Notification of termination of the artel's activities;

+ Decision on the reclamation of the common fund, common assets by the People's Committee of the district where the artel is headquartered in case the artel has a common fund, common assets supported entirely by the State;

+ Report on the results of the transfer, liquidation of assets by the Asset Liquidation Council in case the artel has a common fund, common assets partially supported by the State.

- Step 4: After receiving the dossier for termination of the artel's activities, the district-level business registration agency sends information about the artel's registration for termination of activities to the tax authority. Within 02 working days from the date of receiving the information from the district-level business registration agency, the tax authority sends opinions on the completion of the artel's tax obligations to the district-level business registration agency. Within 05 working days from the date of receiving the dossier for termination of the artel's activities, the district-level business registration agency changes the legal status of the artel in the Cooperative Registration Database to the status of terminated activities if no objections are received from the tax authority and issues a notification of the termination of the artel's activities.

- Step 5: At the end of 03 months from the date the district-level business registration agency announces the status of the artel undergoing termination procedures on the National Business Registration Portal without receiving the dossier for termination of the artel's activities and objections in writing from the tax management authority or other organizations, individuals, and related parties, the district-level business registration agency changes the legal status of the artel in the Cooperative Registration Database to the status of terminated activities and issues a notification of the termination of the artel's activities within 03 working days from the end of the specified period. Information about the termination of the artel's activities is transmitted by the Cooperative Registration Information System to the Taxpayer Registration System for updates.

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