UPDATED CASES, PROCEDURES OF INVESTMENT PROJECTS TERMINATION

-
Submit:

Along with the strong development of today's society, the number of business investors is also increasing at a dizzying speed. Because of this increase, the percentage of investment projects termination is not small. In this article, let's learn about terminating investment projects with OTIS LAWYERS!

Legal grounds

Law on investment 2020

CASE OF INVESTMENT PROJECTS TERMINATION

Investors terminate

Investors terminate investment activities or investment projects in the following cases:

  • The investor decides to terminate the operation of the investment project
  • According to the termination conditions specified in the contract, the company's charter
  • Expiry of the operation term of the investment project

Investment registration agency terminates

The investment registration agency shall terminate or partially terminate the operation of an investment project in the following cases:

In case of termination specified at Point a, Clause 2, Article 47 of the Law on Investment

The investment project falls into one of the following cases where the investor is unable to overcome the condition of cessation of operation.

  • The investment authority shall decide to suspend an investment project in part or in full in the following cases:

a) To protect sites/monuments, relics, antiques or national treasures in accordance with the Law on Cultural Heritage;

b) To rectify a violation of the law on environmental protection at the request of the environment authority;

c) To take measures to ensure occupational safety at the request of the labor authority;

d) Pursuant to a judgment or decision of a court or an arbitral award;

đ) The investor fails to adhere to the written approval for investment guidelines or the investment registration certificate and recommits administrative violations after incurring penalties.

  • The Prime Minister shall decide to suspend a project in part or in full if the project execution is detrimental or potentially detrimental to national defense and security at the request of the Ministry of Planning and Investment.

Other cases of termination by the investment registration agency

  • The investor is no longer permitted to keep using the investment location and fails to complete the procedures for change of investment location within 06 months from the date on which the investor is no longer permitted to use the investment location, except for the case specified in Point d of this Clause;
  • The investment registration authority cannot contact the investor or the investor’s legal representative after 12 months from the date of suspension of the project;
  • Land reserved for the investment project is expropriated by the State for the reason that the land is not used or the land use is delayed in accordance with regulations of law on land;
  • The investor fails to pay the deposit or obtain a bank guarantee as prescribed by law if project execution security is required;
  • The investor conducted the investment activities on the basis of a sham civil transaction in accordance with the civil law;
  • Pursuant to a judgment or decision of a court or an arbitral award;

Projects subject to approval for its investment guidelines

For investment projects subject to approval of investment guidelines. the investment registration authority shall terminate the investment project after obtaining the opinion of the authority granting approval for investment guidelines.

ORDER AND PROCEDURES FOR TERMINATION OF INVESTMENT PROJECTS

In case the investor terminates a project, the procedures include:

  • Decision on termination of investment project operation
  • Investment registration certificate (if any)

In case the investment project is terminated at the end of the term, according to the company's charter or contract conditions, the procedures to be prepared will include:

  • Investment registration certificate (if any)
  • A notice of investor
  • A copy of the document on the termination or discontinuance of the investment project.

In case of termination under the decision of the Investment Registration Authority:

  • The investment registration agency decides to terminate the operation of the investment project
  • Withdrawal of Investment Registration Certificate
  • The investment registration certificate expires; from the effective date of the decision of the Investment Registration Authority.

INVESTMENT CONSULTING SERVICE OF OTISLAWYERS

OTIS LAWYERS are always proud to be a professional unit in the field of investment consulting. With a team of highly qualified and extensively experienced lawyers. Along with the dedication to clients, we believe in providing investors with the best and the most professional services, also reasonable cost and fastest time to complete the procedure. We guarantee that all client information is strictly confidential. And client interests always come first. Any questions please contact

OTIS AND PARTNERS LAW FIRM

Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi

Email: [email protected]

Hotline: 0987748111 Website: https://otislawyers.vn/

Comments