HOW LONG DOES IT TAKE TO DISSOLVE AN INVESTMENT PROJECT?
QUESTION
Dear TLK Law Firm, we hope that your company will answer to the following problem: In the near future, my business has an investment project that is due to stop operating. Currently, we are learning about the procedures for dissolving investment projects and are wondering about the procedure time. So let me ask, how long can it take to dissolve an investment project? Looking forward to your company's answer. Thank you!
RELATED ARTICLES
2. How to carry out procedures for terminating investment project activities?
3. Consequences of procedures for terminating investment project activities
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. Decree No. 31/2021/ND-CP issued by the Government on March 26, 2021 detailing and guiding the implementation of a number of articles of the Investment Law;
3. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
Currently, investment projects of many scales are increasingly developing in Vietnam. These projects not only bring significant economic and social benefits to the country but also attract many large investors from abroad. However, at the same time, an investment project has matured or has to be dissolved. So how much time does it take for a business to carry out procedures to dissolve an investment project? The answer to this problem will be consulted by TLK Law Firm through the article below.
Photo 1. How long does it take to dissolve an investment project?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO DISSOLUTION OF INVESTMENT PROJECTS
1. What is an investment project?
According to the provisions of 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.
Investment projects include several types as follows:
- Expansion investment project is an investment project that develops an active investment project by expanding scale, increasing capacity, innovating technology, reducing pollution or improving the environment;
- New investment project is an investment project implemented for the first time or an investment project independent of an active investment project;
- A creative startup investment project is an investment project that implements ideas based on exploiting intellectual property, technology, new business models and has the ability to grow rapidly.
Thus, we can understand that an investment project is a collection of related documents and activities with the purpose of proposing a capital investment plan to carry out a business plan in one location and within a certain period. Based on the investment project, we can know information about the investor and the plans that the investor will carry out. Investment projects include 03 types: new investment projects, expansion investment projects and creative start-up investment projects.
2. What is the dissolution of an investment project?
The term dissolution means to make a certain subject no longer exist. Accordingly, we can understand that dissolution of an investment project means that the investment project has ceased operations and no longer exists. The reason for terminating the operation of an investment project may be related to the contract, business charter, and the project's operating term. The Investment Law 2020 stipulates a number of cases of terminating investment projects as follows:
First, cases where investors terminate investment activities or investment projects:
(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, cases where the investment registration agency terminates or partially terminates the activities of an investment project:
(1) The investment project falls into one of the cases of shutdown according to the provisions of the Investment Law 2020 and the investor is unable to overcome the shutdown conditions;
(2) The investor is not allowed to continue using the investment location and does not carry out procedures to adjust the investment location within 06 months from the date of discontinuation of the investment location, except in the following cases: Investment projects subject to land recovery due to failure to put land into use or delay in putting land into use according to the provisions of land law;
(3) The investment project has stopped operating and after 12 months from the date of shutdown, the investment registration agency cannot contact the investor or the investor's legal representative;
(4) Investment projects subject to land recovery due to failure to put land into use or delay in putting land into use according to the provisions of land law;
(5) The investor does not deposit or does not have a guarantee for deposit obligations according to the provisions of law for investment projects subject to investment project implementation guarantee;
(6) Investors carry out investment activities on the basis of fake civil transactions according to the provisions of civil law;
(7) According to court judgments, decisions, and arbitration awards.
Third, in case the investment project is subject to investment policy approval, the investment registration agency terminates the operation of the investment project after obtaining the opinion of the investment policy approval agency.
3. Time to carry out procedures for dissolution of investment projects
Procedures for dissolution or more precisely termination of investment projects are carried out within a period of 15 days according to the provisions of Decree No. 31/2021/ND-CP, specifically as follows:
First, in case the investor decides to terminate the operation of the investment project, the investor sends the decision to terminate the operation of the investment project to the Investment Registration Authority within 15 days from the date of termination. Decision date, enclosed with Investment Registration Certificate (if any);
Second, in case of terminating the operation of the investment project according to the conditions specified in the contract, enterprise charter or the expiration of the investment project's operating term, the investor shall notify and return the Certificate. Receive investment registration (if any) to the Investment Registration Authority within 15 days from the date of termination of the investment project, accompanied by a copy of the document recording the termination of the investment project. private.
Thus, in 02 groups of cases of terminating investment project activities are (1) deciding to terminate investment activities themselves and (2) terminating investment activities according to the conditions specified in the contract and business charter or the investment project expires, all procedures must be carried out within 15 days.
=> See more: Cases of terminating investment project activities? Can a project that has not yet expired be terminated?
II. PROCEDURE FOR IMPLEMENTING PROCEDURES FOR TERMINATION (DISSOLUTION) OF INVESTMENT PROJECTS
1. Steps to carry out procedures for terminating (dissolving) investment projects
Step 1: Investors prepare and send documents to the competent authority;
Step 2: The competent authority receives and checks the documents;
Step 3: The competent authority records the status of termination of operation of the investment project and notifies relevant agencies (if any);
Step 4: Receive results.
=> See more: Company providing investment certificate adjustment service
2. Document components and procedures for terminating (dissolving) investment projects
A. Document components:
Documents for carrying out procedures for terminating operations (dissolving) investment projects include a number of documents corresponding to the following two cases:
(1) In case of self-decision to terminate the operation of an investment project, the dossier includes:
1. Decision to terminate the operation of the investment project;
2. Investment registration certificate (if any).
(2) In case of termination of operation of an investment project according to the conditions specified in the contract, enterprise charter or expiration of the investment project's operating term, the dossier includes:
1. Notice of investors;
2. Investment registration certificate (if any);
3. Copy of documents recording the termination of investment project operations.
Number of documents: 01 set.
Note: In addition to the above documents, each case needs to be accompanied by the following documents:
1. Power of attorney for the person submitting the application (in case of authorizing someone else to do so);
2. Certified copy of personal legal documents (ID card, citizen identification card, valid passport) of the person performing the procedure;
3. Other documents required by competent state agencies (if any).
B. Resolution agency
Department of Planning and investment.
C. How to do it
Submit applications directly, online or via postal service to the Department of Planning and Investment.
D. Implementation results
Decision to terminate investment project activities.
=> See more: Conditions for increasing investment capital?
Photo 2. How long does it take to dissolve an investment project?_Hotline: 0972118764
III. SUMMARY OF THE ANSWER SECTION: HOW LOST IS THE DISSOLUTION OF AN INVESTMENT PROJECT?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Pursuant to the provisions of Decree No. 31/2021/ND-CP, procedures for terminating (dissolving) investment projects are carried out within 15 days, specifically:
1. 15 days from the date of decision to terminate investment activities in case the investor decides to terminate the operation of the investment project;
2. 15 days from the date of termination of operation of the investment project in case of termination of operation of the investment project according to the conditions specified in the contract, enterprise charter or expiration of the operating term of the investment project. investment projects.
IV. 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;
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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.
=> See more: What documents need to be prepared for an investment project capital increase application?
V. SOME QUESTIONS RELATED TO IMPLEMENTATION OF DISSOLUTION OF INVESTMENT PROJECTS
Question 1: How long is the operating term of an investment project in an economic zone?
Reply:
Based on the Investment Law 2020, the operating term of investment projects in economic zones is 70 years.
Question 2: Will investment projects outside economic zones that operate until the end of 50 years be terminated?
Reply:
The answer is yes.
One of the cases of termination (dissolution) of an investment project is the expiration of the investment project's operating term. Investment projects outside economic zones have an operating term of no more than 50 years. Therefore, at the end of the 50 year period, the investment project outside the economic zone will be terminated (dissolved).
Question 3: After terminating (dissolving) the investment project, how is the liquidation of the investment project carried out?
Reply:
According to the provisions of Decree No. 31/2021/ND-CP, after the investment project terminates operations, the liquidation of the investment project is carried out
1. Investors themselves liquidate investment projects according to the provisions of law on asset liquidation;
2. For investment projects that are allocated land, leased land, or allowed to change land use purposes by the State, the handling of land use rights and assets attached to land is carried out in accordance with the provisions of law on land and related laws;
3. During the liquidation of an investment project, if the investor is an economic organization that is dissolved or falls into bankruptcy, the liquidation of the investment project shall comply with the provisions of law on dissolution, bankruptcy of economic organizations.
Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
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