Regulations on temporary suspension of operations of branches and foreign law firms in Vietnam

Regulations on temporary suspension of operations of branches and foreign law firms in Vietnam (Internet image)

Article 38 of Decree 123/2013/ND-CP stipulates the operation suspension of the foreign branches or law firms in Vietnam as follows:

- A foreign branch or a foreign law firm may suspend its operation, but they must send a written notice on the suspension and restart to the Ministry of Justice, the Justice Service, and the tax authority at the locality where it is located, within 30 days before the suspension or restart. Duration of suspension shall not exceed 02 years.

- Report on the suspension shall have the following contents: name of the branch or the law firm; number, date, month and year being granted with the establishment permit of the branch or the law firm; address of the headquarters; duration of suspension, starting date and ending date of the suspension period; reasons of suspension; reports on debt payments, settlement of legal service contracts signed with clients and labor contracts signed with lawyers and other employees of the branch or the law firm.

- During the suspension, the foreign branch or law firm shall pay full outstanding tax, continue paying other debts and complete performing signed contracts with employees, unless otherwise agreed upon.

Note: With regard to legal service contracts signed with clients that are still under performance, there must be agreements with clients regarding the performance of such contracts. In case a foreign law-practicing firm suspends its operation then the operation of its branches also suspend.

More details can be found in Decree 123/2013/ND-CP which comes into force from November 28, 2013.

Ty Na

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