Vietnam: What are cooperative registration agencies?

Vietnam: What are cooperative registration agencies? (Internet image)

1. What are cooperative registration agencies?

Before being legally established, cooperatives or associations of cooperatives must apply for registration with cooperative registration agencies at localities where cooperatives or associations of cooperatives intend to establish their main offices.

- Associations of cooperatives or people's credit funds may register with the business registration divisions affiliated to the departments of planning and investment;

- Cooperatives may apply for registration with the finance – planning divisions affiliated to the district-level People’s Committees.

(Clause 1, Article 6 of Decree 193/2013/ND-CP)

2. Rights and duties of cooperative registration agencies in Vietnam

Rights and duties of cooperative registration agencies in Vietnam include:

- Directly receive applications for registration of cooperatives or associations of cooperatives, branches, representative offices or business locations of cooperatives or associations of cooperatives;

Issue, replace and revoke certificates of registration of cooperatives or associations of cooperatives, certificates of registration of operation of branches, representative offices or business locations of cooperatives or associations of cooperatives;

- Provide cooperatives or associations of cooperatives with instructions on implementation of the procedures for registration or registration of change, or notification of change, reorganization, dissolution and bankruptcy of cooperatives or associations of cooperatives;

- Build and manage the systems of information about cooperatives or associations of cooperatives within their remit; provide information about cooperatives or associations of cooperatives for competent regulatory authorities, organizations or individuals upon their request in accordance with laws;

- Request cooperatives or associations of cooperatives to report on business operations of cooperatives or associations of cooperatives in accordance with Article 23 of Decree 193/2013/ND-CP; expedite the implementation of reporting regimes applied by cooperatives or associations of cooperatives in accordance with laws;

- Directly inspect or request competent regulatory authorities to inspect cooperatives or associations of cooperatives to verify information contained in certificates of registration of cooperatives or association of cooperatives where necessary;

- Bear responsibility for validity of applications for registration of cooperatives or associations of cooperatives;

- Order cooperatives or associations of cooperatives to temporarily suspend business operations classified into business sectors or industries subject to regulatory conditions when discovering that cooperatives or associations of cooperatives fail to comply with legislative regulations and, concurrently, informing competent regulatory authorities of such incompliance so that they may impose any sanction in accordance with laws;

- Revoke certificates of registration of cooperatives or associations of cooperatives in accordance with Article 56 in the Law on Cooperatives;

- Implement reporting regimes in accordance with laws.

(Clause 2, Article 6 of Decree 193/2013/ND-CP)

3. Support and preferential policies of the State in Vietnam

- The State has the following support policies for cooperatives and unions of cooperatives:

+ Training and retraining of human resources;

+ Trade promotion and market expansion;

+ Application of new science, techniques and technologies;

+ Access to capital and funds to support the development of cooperatives;

+ Facilitation of participation in target programs and socio-economic development programs;

+ Establishment of cooperatives and unions of cooperatives.

- The State has the following preferential policies for cooperatives and unions of cooperatives:

+ Preferential business income tax and other taxes in accordance with tax laws;

+ Preferential fee for cooperative or cooperative union registration in accordance with the law on charges and fees.

- Cooperatives and unions of cooperatives operating in agriculture, forestry, fishery or salt production may, in addition to the support and preferential policies prescribed in Clauses 1 and 2 of Article 6 of the Cooperative Law 2012, enjoy the following support and preferential policies:

+ Investment in infrastructure development;

+ Allocation and lease of land for their activities in accordance with the land law;

+ Preferential credit;

+ Capital and breeds when meeting with difficulties caused by natural disasters or epidemics;

+ Product processing.

(Article 6 of the Cooperative Law 2012)

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