Validity of certificate of satisfaction of security and order conditions in Vietnam

Validity of certificate of satisfaction of security and order conditions in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Validity of certificate of satisfaction of security and order conditions in Vietnam

Specifically, Article 15 of Decree 96/2016/ND-CP stipulates the validity period of the Certificate of satisfaction of security and order conditions as follows:

- A certificate of satisfaction of security and order conditions shall not have expiry date, except for the cases mentioned in Clause 2 of Article 15 of Decree 96/2016/ND-CP.

+ The validity of a certificate of satisfaction of security and order conditions must be defined in the following cases:

+ If a business establishment has a fixed operating duration as referred to by the law or as defined in the documents mentioned in Clause 2 Article 19 of Decree 96/2016/ND-CP or the Permit granted by the sector authority to that business establishment with fixed operating duration, the validity of Certificate of satisfaction of security and order conditions shall not exceed duration specified in the said documents;

+ If a business establishment engages in a business sector with use of industrial explosives for construction of works, exploration and exploitation of minerals or petroleum, the validity of Certificate of satisfaction of security and order conditions must conform to the period specified in the document about such construction of works, exploration and exploitation of minerals or petroleum.

- If documents/permits prescribed in Clause 2 of Article 15 of Decree 96/2016/ND-CP are valid for 10 years or more, certificates of satisfaction of security and order conditions shall not have expiry date.

- Relevant business establishments are responsible for providing documents/permits specifying operating duration to competent police authorities.

2. Regulations on management and use of certificate of satisfaction of security and order conditions in Vietnam

Pursuant to Article 17 of Decree 96/2016/ND-CP, regulations on management and use of certificate of satisfaction of security and order conditions are as follows:

- The person in charge of security and order of the business establishment shall properly manage the issued Certificate of satisfaction of security and order conditions and present it to the competent police authorities or regulatory bodies at their request.

- The person in charge of security and order of the business establishment shall maintain the Certificate of satisfaction of security and order conditions during the period when business activities of such business establishment are suspended.

A Certificate of satisfaction of security and order conditions is invalid in case the business establishment is declared bankrupt or stops its operations.

The business establishment must return the issued Certificate of satisfaction of security and order conditions to the competent police authority within 05 days from the date it was declared bankcupt or stopped its operations.

3. Cases of revocation of Certificate of satisfaction of security and order conditions in Vietnam

According to Article 18 of Decree 96/2016/ND-CP, a certificate of satisfaction of security and order conditions shall be revoked in the following cases:

- Permanent revocation:

+ Use forged documents or provide false information to falsify the nature of documents in the application for issuance of certificate of satisfaction of security and order conditions;

+ After granting a Certificate of satisfaction of security and order conditions, the competent police authority conducts verification and discovers that the business establishment fails to meet conditions in Decree 96/2016/ND-CP and within 40 days from the date on which a written conclusion that security and order conditions are unsatisfied, it does not implement remedial measures;

+ After 06 months from the issued date of Certificate of satisfaction of security and order conditions, the business establishment does not carry out business activities;

+ A business establishment is dissolved or declared bankrupt in accordance with the laws;

+ Business activities are suspended or the business establishment has any of its documents mentioned in Clause 2 Article 19 of Decree 96/2016/ND-CP revoked by a competent authority;

+ A Certificate of satisfaction of security and order conditions is lent, rent or sold;

+ A Certificate of satisfaction of security and order conditions is permanently revoked at the request of a competent authority because business activities of the business establishment are exploited to infringe on the security and order;

+ The capital contributed by foreign party in a security service provider with foreign investment to purchase machinery and technical facilities to serve provided security services is unsatisfied as regulated in Decree 96/2016/ND-CP.

- Revocation for 03 to 06 months:

+ The business establishment carries out business activities or has business location other than those specified in the issued certificate of satisfaction of security and order conditions;

+ After 30 days from the date on which an administrative penalty is imposed for failure to maintain security and order conditions prescribed in Articles 7, 8, 11 and 12 of Decree 96/2016/ND-CP, the business establishment still fails to implement remedial actions;

+ Contents in the issued Certificate of satisfaction of security and order conditions are altered or erased;

+ A business establishment has faced administrative penalties for violations against regulations on security and order for 02 times or more per year;

+ A business establishment fails to submit quarterly report to the competent police authority as regulated for 04 consecutive quarters.

- Competent police authorities shall revoke Certificate of satisfaction of security and order conditions in cases referred to in Clause 1 and Clause 2 of Article 18 of Decree 96/2016/ND-CP by granting revocation decisions.

The police authority must send a written notice of the revocation to the business registration agency or the competent authority that granted operation license to the business establishment.

Ho Quoc Tuan

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