06 things you should know about property auction businesses in Vietnam

06 things you should know about property auction businesses in Vietnam (Internet image)

1. Forms and operating conditions of property auction businesses in Vietnam

The form and operating conditions of an asset auction enterprise according to Article 23 of the Law on Property Auction 2016 are as follows:

- Property auction businesses shall be established and organized and operate as private businesses or partnerships in accordance with the Law on Property Auction 2016 and other relevant laws.

- The name of a private auction business shall be given by its owner while the name of an auction partnership may be chosen by its members as agreed upon in accordance with the Law on Enterprises but must include the phrase “private auction business” or “auction partnership”.

- Conditions for registration of operation of a property auction business:

+ A private auction business has its owner being an auctioneer who is concurrently its director. An auction partnership has at least one general partner being an auctioneer and its general director or director being an auctioneer;

+ It has an office, physical foundations and equipment necessary for property auction activities.

- The activities relating to the establishment, organization, operation and termination of operation of property auction businesses not prescribed in the Law on Property Auction 2016 must comply with the Law on Enterprises.

2. Registration of operation of property auction businesses in Vietnam

The registration of operation of property auction businesses under Article 25 of the Law on Property Auction 2016 is as follows:

- A business that satisfies the conditions prescribed in Article 23 of the Law on Property Auction 2016 shall send a dossier of request for registration of property auction operation to the provincial-level Justice Department of the locality where it is located and pay a charge prescribed by law. Such a dossier must comprise:

+ A written request for operation registration:

+ The business charter, for an auction partnership;

+ A certified copy or a copy enclosed with the original of the auction practice certificate of the private auction business’s owner, or the auction practice certificate of the general partner, general director or director of the auction partnership;

+ Papers proving the existence of the business’s office and written commitments to ensure physical foundations and equipment necessary for the property auction operation.

- Within 10 working days after receiving a complete and valid dossier, the provincial- level Justice Department shall grant an operation registration certificate to the requesting property auction business. In case of refusal to grant a certificate, it shall notify in writing the reason. The business that has its request for grant of an operation registration certificate rejected may file a complaint or initiate a lawsuit in accordance with law.

- A property auction business may commence its operation from the date it is granted an operation registration certificate.

3. Publication of operation registration contents of property auction businesses in Vietnam

Publication of operation registration contents of property auction businesses according to Article 28 of the Law on Property Auction 2016 as follows:

- Within 30 days after being granted an operation registration certificate, a property auction business shall publish on three consecutive issues of a central daily or a daily of the locality where it has made the operation registration the following principal contents:

+ Its name;

+ Addresses of its head office, branches and representative offices;

+ Serial number and date of grant of its operation registration certificate, and place of operation registration;

+ Full name and serial number of the auction practice certificate of its owner; full names and serial numbers of auction practice certificates of general partners and general director or director of the auction partnership.

- In case of a change in its operation registration contents, a property auction business shall publicize such change as prescribed.

4. Branches of property auction businesses in Vietnam

The branches of property auction businesses according to Article 29 of the Law on Property Auction 2016 are as follows:

- A branch of a property auction business may be established in or outside the province or centrally run city where such business has made its operation registration.

The property auction business shall take responsibility for operation of its branches and appoint an auctioneer to act as the head of the branch.

- A property auction business shall submit a dossier for registration of operation of its branch to the provincial-level Justice Department of the locality where it is located. Such a dossier must comprise:

+ A written request for branch operation registration;

+ The branch establishment decision;

+ A certified copy or a copy enclosed with the original of the operation registration certificate of the business;

+ A certified copy or a copy enclosed with the original of the auction practice certificate of the branch head;

+ Papers proving the existence of the branch office.

- Within 7 working days after receiving a complete and valid dossier, the provincial- level Justice Department shall grant an operation registration certificate to the branch. In case of refusal to grant such certificate, it shall notify in writing the reason. The business that has its request for branch operation registration rejected may file a complaint or initiate a lawsuit in accordance with law.

- A branch shall commence its operation from the date it is granted an operation registration certificate. Within 7 working days after being granted a branch operation registration certificate, a business shall send a written notice enclosed with a copy of the branch operation registration certificate to the provincial-level Justice Department of the locality w here it has made its operation registration.

5. Representative offices of property auction businesses in Vietnam

According to Article 30 of the Law on Property Auction 2016, the representative offices of property auction businesses is as follows:

- A representative office of a property auction business may be established in or outside the province or centrally run city where such business has made its operation registration. Representative offices may not conduct property auctions.

- Within 5 working days after establishing a representative office, a business shall notify in writing the address of such representative office to the provincial-level Justice Department of the locality where it locates the representative office and provincial-level Justice Department of the locality where it has made its operation registration.

6. Termination of operation of property auction businesses in Vietnam

Termination of operation of property auction businesses according to Article 31 of the Law on Property Auction 2016 as follows:

- A property auction business shall terminate its operation in the following cases:

+ It is dissolved;

+ It is consolidated or merged with another business;

+ It falls bankrupt;

+ It has its operation registration certificate revoked under Clause 1, Article 32 of this Law.

- Within 7 working days after a property auction business terminates its operation, the provincial-level Justice Department shall notify such in writing to the tax office, statistics office and planning and investment office of the locality where the business is located;

And publish on its portal information on termination of operation of the business.

Quoc Dat

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