CASES OF REVOKING INVESTMENT REGISTRATION CERTIFICATE

Investment registration certificate is a paper or electronic document recording the investor's registration information about an investment project. In some cases, the Investment Registration Certificate will be revoked by a competent state agency. So what are these cases and which agency has the authority to revoke investment registration certificates? Let's find out with OTIS LAWYERS through the article below!

Legal basis

Law on Investment 2020

Decree 31/2021/ND-CP

Cases of revocation of Investment Registration Certificate

The investment registration agency decides to revoke the Investment Registration Certificate (IRC) in case the investment project terminates operations according to the provisions of Clause 2, Article 48 of the Investment Law 2020:

- The investment project falls into one of the cases specified in Clauses 2 and 3, Article 47 of this Law and the investor is unable to overcome the conditions of cessation of operations;

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 prescribed cases at Point d of this Clause;

- The investment project has stopped operating and at the end of 12 months from the date of shutdown, the investment registration agency cannot contact the investor or the investor's legal representative;

- 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;

- 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;

- Investors carry out investment activities on the basis of fake civil transactions according to the provisions of civil law;

- According to court judgments, decisions, and arbitration awards.

The competent authority revokes the Investment Registration Certificate

Article 39 of the Investment Law 2020 stipulates the authority to grant, adjust and revoke IRC as follows:

1. The Management Board of industrial parks, export processing zones, high-tech zones, and economic zones revokes IRC for investment projects in industrial parks, export processing zones, high-tech zones, and economic zones, except for cases in accordance with the provisions of Clause 3 of this Article.
2. The Department of Planning and Investment revokes IRC for investment projects outside industrial parks, export processing zones, high-tech zones, and economic zones, except for the cases specified in Clause 3 of this Article
3. The investment registration agency where the investor implements the investment project, places or plans to locate the executive office to implement the investment project revokes the IRC for the following investment projects

a) Investment projects implemented in 02 or more provincial administrative units;

b) Investment projects implemented inside and outside industrial parks, export processing zones, high-tech parks and economic zones;

c) Investment projects in industrial parks, export processing zones, high-tech zones, economic zones where the Management Board of industrial parks, export processing zones, high-tech zones, economic zones has not been established or is not within the scope of management of the Management Board of industrial parks, export processing zones, high-tech zones, and economic zones.

Additional:

Pursuant to Clause 3, Article 34 of Decree 31/2021/ND-CP supplementing regulations: Management boards of industrial parks, export processing zones, high-tech zones, and economic zones revoke investment registration certificates for investment projects after:

a) Investment projects on construction and business of infrastructure in industrial parks, export processing zones, high-tech parks and functional areas in economic zones;

b) Investment projects implemented in industrial parks, export processing zones, high-tech zones, and economic zones.

Procedure for revocation of Investment Registration Certificate

When the Investment Registration Authority decides to terminate the operation of the investment project, it will revoke the IRC. Procedures for terminating the operation of investment projects are carried out according to the procedures specified in Clause 2, Article 57 of Decree 31/2021/ND-CP:

a) 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 Decision, enclosed with IRC (if any);

b) In case of termination of operation of the investment project according to the conditions specified in the contract, enterprise charter or expiration of the investment project's operating term: The investor shall notify and submit the IRC (if applicable) 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. The investment registration agency notifies relevant agencies of the termination of operations of the investment project;

c) In case of terminating the operation of an investment project according to the provisions of Clause 2, Article 48 of the Investment Law described above, the Investment Registration Authority shall decide to terminate the operation of the investment project, and at the same time revoke IRC for investment projects that have been granted IRC. The IRC ceases to be effective from the effective date of the decision to terminate the operation of the investment project.

Note:

In case the investment project is under the Investment Certificate (also the Business Registration Certificate) or Investment License, the Investment Registration Authority decides to terminate the operation of the investment project without revoking the Investment Certificate (also the Business Registration Certificate) or Investment License. In this case, the business registration content in the Investment Certificate (also the Business Registration Certificate) and Investment License continue to be valid.

In case an enterprise has its Business Registration Certificate revoked according to the provisions of law on enterprises, the Business Registration Authority shall carry out procedures to revoke the business registration content in the Investment Registration Certificate (Simultaneously the Business Registration Certificate); The investment project content continues to be valid.

Above is OTIS LAWYERS' advice on revoking the Investment Registration Certificate according to current legal regulations. We hope this article will be a useful reference source for you.

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