After being registered and approved by the investment registration authority and receiving the Investment Registration Certificate, the investment project must commence operations and completely implement the registered contents and schedule of the project.
However, in some cases, investors wish to terminate the investment project operations, so What are the procedures for terminating investment project operations? Following along with the article below.
I. Definition and conditions for terminating investment project operations
1.1. What is the termination of investment project operations?
Termination of investment project operations means an investor ceases to contribute capital to conduct business operations in cases according to the Law on Investment 2020.
1.2. Conditions for terminating investment project operations
Investment projects terminate their operations in cases according to Clauses 1 and 2, Article 48 of the Law on Investment 2020.
II. Cases of terminating investment projects
2.1. The investor voluntarily terminates the investment project operations
Investors terminate investment operations and investment projects in the following cases:
- The investor decides to terminate the investment project operations.
- According to the termination conditions of investment operations specified in the contract and the enterprise's charter;
- The investment project has reached the end of its operational period (expired).
2.2. The investment registration authority terminates the investment project operations
The investment registration authority terminates a part or all of the operations of the investment project in the following cases:
- The investment project falls under one of the cases specified by law where the investor is unable to rectify the conditions for suspension;
- Investors are not allowed to continue using the investment location and do not implement the procedures to adjust the investment location within 06 months from the date they are no longer allowed to use the investment location, unless otherwise provided by law.
- The investment project has ceased its operations and the 12-month period has expired since the cessation, and the investment registration authority cannot contact the investor or the legal representative of the investor;
- The investment project is subject to land recovery due to failure to put the land into use or delayed use of the land as defined by the regulations of Law on land;
- The investor does not deposit or does not have a guarantee for the deposit obligation as required by Law for investment projects that are subject to investment project implementation guarantees;
- The investor conducts investment operations based on artificial civil transactions in accordance with civil laws;
- According to the verdict, the decision of the Court, and the award of arbitration.
III. Procedures for terminating investment project operations
The termination of the investment project operations is implemented according to the procedures as stated in Clause 2, Article 57 of Decree 31/2021/ND-CP, as follows:
- In the case where the investor decides to terminate the investment project operations: The investor submits the decision to terminate the investment project operations to the Investment Registration Authority within 15 days from the date of the decision, along with the Investment Registration Certificate (if any); .
- In case of termination of the investment project operations according to the conditions specified in the contract, the company's charter, or the expiration of the investment project's operational period:
+ The investor must notify and submit the Investment Registration Certificate (if any) to the Investment Registration Authority within 15 days from the date of termination of the investment project operations, along with a copy of the document recording the termination of the investment project operations.
+ The investment registration agency notifies the relevant authorities of the termination of the investment project operations.
- In case of termination of investment project operations pursuant to Clause 2, Article 48 of the Law on Investment 2020:
+ The investment registration authority decides to terminate the operation of the investment project, while simultaneously revoking the Investment Registration Certificate issued for the investment project
+ The investment registration certificate shall cease to be valid from the date the decision to terminate the investment project takes effect.
IV. Some questions about the termination of investment project operations
4.1. Can the investor unilaterally terminate the investment operation during a period for extending the investment schedule?
Pursuant to Article 48 of the Law on Investment 2020, lawmakers do not exclude the cases of not terminating investment operations during the extension period of investment schedule.
Accordingly, the investor can independently terminate the investment operation during such a period.
4.2. Which authority is responsible for terminating the investment project operations?
According to the law, the Investment Registration Authority has the competence to decide to terminate the operations of the investment project.
V. Legal consulting services related to the termination of investment operations
Above is the information addressing the termination of investment project operations that NPLAW has sent to our readers. If you have any related questions that need further clarification, please contact NPLAW at the following contact information:
