ADMINISTRATIVE VIOLATIONS IN THE INVESTMENT AND BUSINESS FIELD No. Common violations Legal basis 1 Violations of declaration [...]
ADMINISTRATIVE VIOLATIONS IN THE FIELD OF BUSINESS INVESTMENT
| STT | Common violations | Legal basis |
| 1 | Violations of declaring business registration documents: Untruthful and inaccurate declaration of the content of business registration documents, application documents to change business registration content to be granted a Certificate of Business Registration, Certificate of Change of Business Registration Content | Clause 4 Article 16 Law on Enterprises No. 59/2020/QH14 |
| 2 | Violation of the time limit for registering changes to the content of the Business Registration Certificate: Enterprises are responsible for registering changes to the content of the Business Registration Certificate and notifying changes to the business registration content within 10 days from the date of change | Clause 2, Article 30; Clause 2, Article 31 of Enterprise Law No. 59/2020/QH14 |
| 3 | Violation of time to adjust capital or change members, founding shareholders: Failure to carry out procedures to adjust capital or change members, founding shareholders according to regulations at the business registration agency after the end of the capital contribution period and the end of the capital adjustment period due to members, founding shareholders not contributing enough capital but no member, founding shareholder has made a commitment to contribute capital | Clause 4, Article 47; Clause 3, Article 75; Clause 3 Article 113 Law on Enterprises No. 59/2020/QH14 |
| 4 | Doing business in the form of an enterprise without registration or continuing to do business after the Business Registration Certificate has been revoked or the enterprise is temporarily suspending business operations | Clause 3 Article 16 Law on Enterprises No. 59/2020/QH14 |
| 5 | Doing business in industries and professions that are prohibited from business investment; Business lines and professions that do not have market access for foreign investors; Doing business in conditional business investment lines when the business investment conditions are not met according to the provisions of law or the business investment conditions are not guaranteed to be maintained during operation | Clause 6 Article 16 Law on Enterprises No. 59/2020/QH14 |
| 6 | Violations regarding the legal representative and authorized representative of the enterprise: – No legal representative residing in Vietnam;
– Failure to authorize another person in writing to act as a representative or a written authorization that has expired but is not renewed when the sole legal representative of the enterprise exits Vietnam; – The authorized representative does not meet the prescribed standards; – Authorization exceeds the maximum number of authorized persons as prescribed by law |
Clause 3, Article 12; Clause 1, 2 Article 14 Law on Enterprises No. 59/2020/QH14 |
| 7 | Other violations related to business organization and management:
– Appointing people who are not authorized to manage the enterprise to hold enterprise management positions; – Appointing a person who does not meet the qualifications and conditions to be Director (General Director). |
Clause 24, Article 4; Article 63 of Enterprise Law No. 59/2020/QH14 |
| 8 | Violation of charter capital declaration: Incorrect declaration of charter capital, failure to contribute the full amount of charter capital as registered; intentionally valuing assets contributed as capital at incorrect value | Clause 5 Article 16 Law on Enterprises No. 59/2020/QH14 |
| 9 | Violations of information and reporting regime on investment activities in Vietnam, including:
a) Prepare investment monitoring and evaluation reports not on time or with incomplete content as prescribed; b) Failure to implement periodic investment monitoring and evaluation reports as prescribed. c) Failure to report investment activities or not reporting on time as prescribed; d) Untruthful or inaccurate reporting on investment activities |
Decree No. 122/2021/ND-CP dated December 28, 2021 of the Government regulating penalties for administrative violations in the field of planning and investment |
| 10 | Violations of business investment conditions in Vietnam, including:
a) Contributing capital, purchasing shares, purchasing capital contributions from economic organizations that do not meet the prescribed conditions. b) Investors transfer part or all of an investment project that does not meet the prescribed conditions |
Decree No. 122/2021/ND-CP dated December 28, 2021 of the Government regulating penalties for administrative violations in the field of planning and investment |
| 11 | Violations in implementing investment projects in Vietnam, including:
a) Not making a deposit or not having a bank guarantee on the deposit obligation to ensure the implementation of an investment project that requires the State to allocate land, lease land, or allow change of land use purpose, unless otherwise prescribed by law; b) Implementing procedures to ensure investment project implementation not on time; c) Increase the project's investment capital without paying an additional deposit or supplementing a deposit guarantee from a credit institution when there is a written additional request from the investment management agency; d) Illegally, dishonestly, or inaccurately declare or prepare documents to reduce costs to ensure project implementation. e) Failure to comply with the content of the investment policy approval document, investment policy approval concurrent with investor approval, investor approval, investment registration certificate; f) Failure to carry out procedures for liquidating investment projects and financial obligations to the State according to the provisions of law; g) Cessation of investment projects for a total period of more than 12 months. |
Decree No. 122/2021/ND-CP dated December 28, 2021 of the Government regulating penalties for administrative violations in the field of planning and investment |
| 12 | Violation of investment incentives (inaccurate or dishonest declaration of necessary information to enjoy investment incentives) | Decree No. 122/2021/ND-CP dated December 28, 2021 of the Government regulating penalties for administrative violations in the field of planning and investment |
Procedures
