Decree 98/2020/ND-CP of the Government prescribing penalties for administrative violations against regulations on commerce, production and trade in counterfeit and prohibited goods, and protection of consumer rights in Vietnam, will take effect from October 15, 2020. There will be heavy fines for violations related to business licenses for domestic enterprises and foreign-invested enterprises.
Article table of contents
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From October 15, 2020, heavy fines for violations related to business licenses in Vietnam (Internet image)
Specifically, Article 6 of Decree 98/2020/ND-CP stipulates penalties for violations against regulations on business operations requiring business licenses and Article 70 of Decree 98/2020/ND-CP stipulates penalties for violations against regulations on purchase and sale of goods and activities directly related to the purchase and sale of goods of foreign-invested enterprises in Vietnam as follows:
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Violations |
Fines |
Additional penalties/ Remedial measures |
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For domestic enterprises |
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Making interlineations, erasure or alteration of the business license; |
VND 3,000,000 to VND 5,000,000 |
The exhibits of the violation shall be confiscated; |
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Leasing, lending, pledging, mortgaging, selling or transferring the business license; |
The business license shall be suspended for a fixed period of 01 - 03 months. The violating entity is compelled to return any benefits illegally obtained from the commission of the violations |
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Hiring, borrowing, buying or receiving pledge, mortgage or transfer of the business license. |
None |
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Failing to comply with the scope, subjects, scale, duration, location, place or products specified in the business license. |
VND 5,000,000 to VND 10,000,000 |
The business license shall be suspended for a fixed period of 01 - 03 months. The violating entity is compelled to return any benefits illegally obtained from the commission of the violations |
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Failing to obtain the business license when trading in goods or services classified as conditional business lines; |
VND 10,000,000 to VND 15,000,000 |
The violating entity is compelled to return any benefits illegally obtained from the commission of the violations |
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Using an expired business license when trading in goods or services classified as conditional business lines; |
The business license shall be suspended for a fixed period of 01 - 03 months. |
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Failing to meet business conditions during the trading in goods or services classified as conditional business lines; |
The violating entity is compelled to return any benefits illegally obtained from the commission of the violations |
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Using the business license of another trader. |
The violating entity is compelled to return any benefits illegally obtained from the commission of the violations |
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Failing to stop doing business during the period of suspension of business operations, suspension or revocation of the business license decided by a competent authority. |
VND 15,000,000 to VND 20,000,000 |
The violating entity is compelled to return any benefits illegally obtained from the commission of the violations |
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For foreign-invested enterprises in Vietnam |
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Providing false information in the application for issuance, re-issuance, modification or renewal of the business license or license for establishment of retail outlet; |
VND 10,000,000 to VND 20,000,000 |
None |
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Failing to report the loss of business license or license for establishment of retail outlet to competent authorities; |
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Failing to carry out procedures for modification of the business license or license for establishment of retail outlet upon occurrence of any changes in its contents; |
VND 20,000,000 to VND 30,000,000 |
None |
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Failing to carry out procedures for re-issuance of the business license or license for establishment of retail outlet in case it is lost, torn, damaged, burned or otherwise destroyed. |
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Operating beyond the scope specified in the business license or license for establishment of retail outlet; |
VND 30,000,000 to VND 40,000,000 |
The business license or license for establishment of retail outlet shall be suspended for a fixed period of 01 - 03 months or business operations shall be suspended for a fixed period of 01 - 03 months The violating entity is compelled to return any benefits illegally obtained from the commission of the violations. |
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Continuing operations after the business license or license for establishment of retail outlet has been revoked by a competent authority or has been expired without renewal granted. |
VND 40,000,000 to VND 50,000,000 |
The violating entity is compelled to return any benefits illegally obtained from the commission of the violations |
In addition, a fine that is twice as much as the fine above shall be imposed upon the entity that engages in production of industrial alcohol, processing or trading in tobacco raw materials, manufacturing of tobacco products, distribution or wholesaling of alcohol or tobacco products, and commits an administrative violation.
Le Vy
- Key word:
- business licenses
- Vietnam
