CAN AN ENTERPRISE JUST REQUEST TO TERMINATE THE OPERATION OF AN INVESTMENT PROJECT WITHOUT GOING THROUGH DISSOLUTION PROCEDURES
QUESTION
Dear TLK Law Firm, I currently have questions and hope to hear from you as follows: My business is investing in projects in Vietnam, but in recent years the investment has been difficult ineffective investment. I want to terminate the operation of that investment project without dissolving the business. So let me ask, can an enterprise just request to terminate the operation of the investment project without going through dissolution procedures? Looking forward to your company's answer. Thank you!
RELATED ARTICLES
2. Comprehensive investment project termination and consulting services
Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Investment Law No. 61/2020/QH14 passed by the National Assembly on June 17, 2020;
2. Enterprise Law No. 59/2020/QH14 passed by the National Assembly on June 17, 2020;
3. Decree No. 31/2021/ND-CP issued by the government on March 26, 2021 detailing and guiding the implementation of the Investment Law;
4. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
During investment activities, there are cases where investors terminate investment projects according to their subjective, but there are also cases where they are forced to terminate investment projects according to law. And many business owners mistakenly believe that terminating the operation of an investment project also means dissolving the business. So can an enterprise just request to terminate the operation of the investment project without going through dissolution procedures? This is the question that most customers send to TLK Law Company Limited.
Therefore, through this article, we - TLK Law Firm will answer your questions about Enterprises that can only apply to terminate the operation of investment projects without going through dissolution procedures?
Photo 1. Can an enterprise just request to terminate the operation of an investment project without going through dissolution procedures?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO TERMINATION OF INVESTMENT PROJECT ACTIVITIES AND DISSOLUTION OF ENTERPRISES
1. What is enterprise dissolution? What is an investment project?
According to the 2020 Enterprise Law, enterprise dissolution is understood as the termination of operations, the existence of an enterprise, the termination of its legal status as well as related rights and obligations in the economic market. After the company declares dissolution, it is not allowed to operate or conduct business in the name of the company.
According to the Investment Law 2020, an investment project is a collection of proposals to invest medium-term or long-term capital to conduct business investment activities in a specific area, within a specified period of time.
Thus, dissolution of the enterprise and termination of investment project operations are two separate procedures, governed by two different legal documents.
2. Can an enterprise just request to terminate the operation of an investment project without going through dissolution procedures?
According to Decree 31/2021/ND-CP, investment projects terminate operations in the following cases:
First: According to the decision of the Investor or according to the contract or charter of the enterprise, the investor terminates the investment project in the following cases:
(1) The investor decides to terminate the operation of the investment project;
(2) According to the conditions for termination of operations specified in the contract and charter of the enterprise;
(3) Expiration of the investment project's operating term.
Second: According to the decision of the investment registration agency, the investment registration agency terminates part or all of the investment project's activities in the following cases:
(1) The project temporarily suspends investment according to the decision of a state agency or the Prime Minister. The investor's inability to overcome the shutdown condition;
(2) The investor is not allowed to continue using the investment location; Failure to carry out procedures to adjust investment location within 06 months;
(3) The investment project has stopped operating; expires 12 months from the date of cessation of operations; The investment registration agency cannot contact the investor/legal representative of the investor;
(4) Investment projects subject to land recovery due to not putting the land into use; delay in putting land into use in accordance with land laws;
(5) Investors do not deposit; There is no margin obligation guarantee;
(6) Investors carry out investment activities on the basis of fake civil transactions;
(7) According to court judgments, decisions, and arbitration awards.
According to the Enterprise Law 2020, businesses are dissolved in the following cases:
(1) End of the operating term stated in the company charter without a decision to extend;
(2) According to resolutions and decisions of the business owner for private enterprises, of the Board of Members for partnerships, of the Board of Members and company owner for limited liability companies term, of the General Meeting of Shareholders for joint stock companies;
(3) The company no longer has the minimum number of members as prescribed by this Law for a period of 06 consecutive months without carrying out procedures for converting the type of enterprise;
(4) The Business Registration Certificate is revoked, unless otherwise prescribed by the Law on Tax Administration.
Thus, terminating investment project activities and dissolving the enterprise are two different procedures. Cases of termination of investment project activities also do not include cases of enterprise dissolution. Therefore, an enterprise can just request to terminate the operation of the investment project without needing to go through dissolution procedures.
Photo 2. Can an enterprise just request to terminate the operation of an investment project without going through dissolution procedures?_Hotline: 0972118764
II. SUMMARY OF THE ANSWER SECTION: CAN AN ENTERPRISE JUST APPLY TO TERMINATE INVESTMENT PROJECT ACTIVITIES WITHOUT GOING TO DISSOLUTION PROCEDURES?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Enterprises can simply request to terminate the operation of the investment project without needing to go through dissolution procedures.
III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time while the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the company providing the best legal services on the market, we satisfy all of the above criteria and more. will definitely be a good choice for you.
IV. SOME QUESTIONS RELATED TO TERMINATION OF INVESTMENT PROJECT ACTIVITIES AND DISSOLUTION OF ENTERPRISES
Question 1: What is the deposit level to ensure investment project implementation?
Reply:
According to the Investment Law 2020, based on the scale, nature and implementation progress of each investment project, the deposit level to ensure the implementation of the investment project ranges from 01% to 03% of the project's investment capital. investment project. In case an investment project includes many investment stages, the deposit amount is paid and refunded according to each stage of investment project implementation, except in cases where it is not refundable.
Question 2: If a company has announced its decision to dissolve but has not yet paid all its debts, can it be dissolved?
Reply:
According to the 2020 Enterprise Law, businesses can only be dissolved when they ensure payment of all debts and other property obligations and are not in the process of resolving disputes at Court or Arbitration. Therefore, if all debts have not been paid, the company will not be dissolved.
Question 3: When dissolving an enterprise's debts, how are their debts paid in order of priority?
Reply:
According to the 2020 Enterprise Law, corporate debts are paid in the following order of priority:
(1) Salary arrears, severance pay, social insurance, health insurance, unemployment insurance as prescribed by law and other benefits of employees according to the collective labor agreement and signed labor contract;
(2) Tax debt;
(3) Other debts.
=> See more: How long does it take to dissolve an investment project?
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