HOW TO CARRY OUT PROCEDURES FOR TERMINATING INVESTMENT PROJECT ACTIVITIES?
QUESTION
Dear TLK Law Firm, I currently have questions and hope to hear from you as follows: I am implementing an investment project in Vietnam, but currently the project has expired. Therefore, I want to carry out procedures to terminate investment project activities. So let me ask, what are the steps to carry out the procedures for terminating investment project activities? Looking forward to your company's answer. Thank you!
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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 the Investment Law;
3. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
After an investment project has been registered and approved by the investment registration agency and issued with an Investment Registration Certificate, it must begin operations and carry out the correct implementation of the contents and schedule of the project. However, in some cases, the investor wants to terminate the operation of the investment project. So what steps are followed to terminate investment project activities? This is the question that most customers send to TLK Law Firm.
Therefore, through this article, we - TLK Law Firm will answer your questions about the steps to carry out procedures for terminating investment project activities?
Photo 1. How to carry out procedures for terminating investment project activities_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO TERMINATION OF INVESTMENT PROJECT ACTIVITIES
1. What types of investment projects are there?
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. According to the Investment Law 2020, there are the following types of investment projects:
(1) 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;
(2) New investment project is an investment project implemented for the first time or an investment project independent of an active investment project;
(3) Creative startup investment projects are investment projects that implement ideas based on exploiting intellectual property, technology, new business models and have the ability to grow rapidly.
Thus, according to the Investment Law 2020, there are three types of investment projects. It is the basis for investors to implement investment activities and evaluate the effectiveness of the project. And it is especially important in convincing investors to decide to invest and credit institutions to fund the project.
2. How is investment project implementation guaranteed?
According to the Investment Law 2020, ensuring the implementation of investment projects is regulated as follows:
First: Investors must deposit or have a bank guarantee on deposit obligations to ensure the implementation of investment projects that require the State to allocate land, lease land, or allow change of land use purpose, except in the following cases:
(1) The investor who wins the auction for land use rights to implement an investment project is allocated land by the State with land use fees, or leases land with a one-time land rent for the entire lease period;
(2) The investor wins the bid to implement an investment project using land;
(3) Investors are allocated land or leased land by the State on the basis of receiving transfer of investment projects that have made deposits or completed capital contributions and capital mobilization according to the schedule specified in the acceptance document, Investment policy agreement, Investment registration certificate;
(4) Investors are allocated or leased land by the State to implement investment projects on the basis of receiving transfer of land use rights and assets attached to land from other land users.
Second: 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 investment capital of the 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.
Thus, to carry out investment projects, the State stipulates that investors need to have security measures for implementation.
II. PROCESS FOR IMPLEMENTING PROCEDURES FOR TERMINATION OF INVESTMENT PROJECT ACTIVITIES
1. Implementation steps
According to the Investment Law 2020, procedures for terminating investment project activities are carried out according to the following steps:
Step 1: The investor submits the application for termination of operation to the Department of Planning and Investment;
Step 2: Department of Planning and Investment checks the dossier and requests to complete the dossier (if any);
Step 3: If the application is valid, the Department of Planning and Investment records the project's termination status;
Step 4: Investors receive the results.
2. Profile components
According to current legal regulations, dossiers for terminating investment project activities include the following documents:
First: In case of self-decision to terminate the operation of an investment project:
(1) Decision to terminate the operation of the investment project;
(2) Investment registration certificate (if any).
Second: In case of terminating the operation of an investment project according to the conditions specified in the contract, enterprise charter or the expiration of the investment project's operating term
(1) Notice of termination of operations;
(2) Investment registration certificate (if any);
(3) Copy of documents recording the termination of investment project operations.
Note: In addition to preparing documents for each individual case, when carrying out procedures, investors need to prepare additional documents below:
(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).
Number of documents: 01 set.
3. Resolution agency
Department of Planning and investment.
4. Processing time
15 working days from receipt of complete documents.
5. Implementation results
Decision to terminate investment project activities.
=> See more: Can a foreign company establish a subsidiary in Vietnam? What are conditions?
Photo 2. How to carry out procedures for terminating investment project activities_Hotline: 0972118764
III. SUMMARY OF THE ANSWER SECTION: STEPS TO IMPLEMENT PROCEDURES FOR TERMINATION OF INVESTMENT PROJECT ACTIVITIES?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Investors carry out procedures to terminate investment project activities according to the following steps:
Step 1: The investor submits the application for termination of operation to the Department of Planning and Investment.
Step 2: The Department of Planning and Investment receives the application and records the status of termination of the investment project.
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;
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.
=> See more: Where to submit an application to establish a foreign-invested enterprise?
V. SOME QUESTIONS RELATED TO TERMINATION OF INVESTMENT PROJECT ACTIVITIES
Question 1: What are the conditions for transferring an investment project to another investor?
Reply:
According to the Investment Law 2020, investors have the right to transfer all or part of an investment project to another investor when the following conditions are met:
(1) The investment project or portion of the transferred investment project is not terminated;
(2) Foreign investors receiving transfer of investment projects, part of the investment project must meet general conditions;
(3) Conditions according to the provisions of land law in case of transfer of investment projects associated with transfer of land use rights and assets attached to land;
(4) Conditions according to the provisions of housing law and real estate business law in case of transferring housing construction investment projects or real estate projects;
(5) Conditions specified in the investment policy approval document, Investment registration certificate or other relevant provisions of law (if any);
(6) When transferring investment projects, in addition to complying with the provisions of this Article, state-owned enterprises are responsible for complying with the provisions of law on management and use of state capital invested in export products and do business at the enterprise before making adjustments to the investment project.
Question 2: How to terminate the operation of an investment project in case the investor conducts investment activities on the basis of fake civil transactions according to the provisions of civil law?
Reply:
According to the Investment Law 2020, termination of investment project operations in cases where investors carry out investment activities on the basis of fake civil transactions according to the provisions of civil law are as follows:
(1) The investment registration agency decides to terminate all or part of the investment project's activities in cases where the investor carries out investment activities on the basis of artificial civil transactions determined according to provisions of civil law, on the basis of effective judgments and decisions of the Court or arbitration awards;
(2) The investment registration agency, relevant agencies, organizations and individuals have the right to request a competent Court to declare invalid a civil transaction due to fraud during the implementation of an investment project of the investor as a basis for terminating all or part of the investment project's activities.
=> See more: What types of periodic reports must be submitted by foreign companies?
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).
Thank you very much!
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