Procedures for shutting down of representative offices of foreign traders in Vietnam
I. Cases of termination of operation of the representative offices
The representative offices shall be shut down if:
1. It is requested by its head office;
2. The foreign trader ceases to operate according to laws of the country or territory in which such foreign trader is established or registered.
3. The License for Establishment of the representative offices is expired but its head office does not apply for extension of the license.
4. The licensing agency refuses to grant an extension of the expired License for Establishment of the representative offices.
5. The License for Establishment of the representative offices is revoked as prescribed in Article 44 Decree No.07/2016/ND-CP
6. The foreign trader or its representative offices no longer satisfies one of the requirements stipulated in Articles 7 and 8 Decree No.07/2016/ND-CP
III. Records for the procedure
1. A notification of shutdown of the representative offices signed by a competent representative of the foreign trader, excluding cases specified in Clause 5, Article 35 Decree No.07/2016/ND-CP.
2. Copies of written refusals of grant of extension of the license or establishment of the representative offices (in case competent agency disagree to grant of extension) or a copy of the decision on revocation of the license for establishment of the representative offices released by the licensing agency (in case the branch’s license has been revocated);
3. Lists of creditors and the amount of debts, including outstanding taxes and social insurance premiums;
4. Lists of employees and their current benefits;
5. The original License for Establishment of the representative offices.
III. Obligations resulting from shutdown of representative offices
1. The foreign trader and it’s the representative offices shall publicly put up the notice of the shutdown at their office and fulfill other involving obligations under provisions of laws.
2. Every foreign trader having closed its representative offices shall fulfill obligations to contracts and debt settlement including outstanding taxes and settlement of legal benefits of employees working for such representative offices in compliance with provisions of laws.
IV. Legal basis
1. Law on commerce on 14th June, 2005;
2. Decree No.07/2016/ND-CP on 25th January, 2016 on detailed regulations on establishment of representative offices or branches of foreign traders in Vietnam under Law on commerce;
3. Circular No.11/2016/TT-BCT on 5th July, 2016 on forms precribed in Decree No.07/2016/ND-CP on 25th January, 2016 of the Government on guildelines for the law on the commerce in the terms of representative offices and branches of foreign traders in Vietnam.
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