Advisory and implementation services for renewal of licenses assist individuals and enterprises in avoiding interruptions in business operations due to license expiration. Such complete renewal not only ensures legal compliance but also minimizes legal risks, including fines, denial of renewal application, or loss of the rights to licensed activities.

I. Current demand for advisory and implementation services for renewal of licenses

At present, the demand for advisory and implementation services for renewal of licenses is steadily increasing, particularly in the context of significant change and complexity of Laws.

Many enterprises and individuals remain unaware of the duration, procedures, required documents, or competent authorities, which may result in late renewal, operational disruption, administrative sanctions, or license revocation. Engaging professional legal advisory services help them save time and costs, and mitigate potential legal risks.

II. Legal regulations on renewal of licenses  

1. What is license renewal?

License renewal is an administrative procedure that extends the validity of a license already issued when such license is about to its expiration, allowing individuals or organizations to continuously conduct their licensed activities without violating the law. For instance, regarding construction permits, under Clauses 1 and 3, Article 99 of the Law on Construction 2014 as amended by Clause 33, Article 1 of the Law on Construction 2020, if a project has not commenced or has not been completed within the prescribed time, the investor must submit a renewal application. Accordingly, each construction permit may only be renewed twice, and each renewal is a maximum of 12 months; otherwise a new license must be obtained.

In summary, the license renewal ensures the maintenance of lawful rights, preventing procedural interruption or violations due to the expiry of licenses.

2. When must licenses be renewed?

The renewal is necessary when licenses are approaching their expiration date or in cases where they are valid but renewal is required to continue lawful business operations. Specific durations include:  

  • When the license is about to its expiration:
  • Work permits for foreign employees: Renewal must be implemented while permits are still valid, within 5 to 45 days prior to expiration (Article 16 of Decree 152/2020/ND-CP). A work permit may be issued for a maximum of 2 years and can only be renewed once.
  • Other licenses (e.g., investment licenses, business licenses) also require renewal applications prior to expiration, usually from 30 to 60 days or from 15 to 45 days depending on sector-specific regulations.
  • When the license remains valid but it is required to amend information: For example, a driving license must be renewed upon its expiration, being damaged, changing personal information, or conversing from the old to the new form.
  • When investors continue business operations after expiration without renewal: Engaging in business activities under an expired license without timely renewal constitutes a legal violation, leading to administrative sanctions, suspension, or revocation of the license, and rejection of renewal applications.

3. Competent authorities for renewal of licenses 

The competent authority for renewal depends on the type of license. Generally, the authority that initially issued the license is also responsible for renewal. For example:

  • Work permits: The Ministry of Labour, Invalids and Social Affairs or the Department of Labour, Invalids and Social Affairs.
  • Trademark registration certificates: The Intellectual Property Office of Vietnam.
  • Construction permits: Depending on the scale of the project, either the Ministry of Construction, the provincial People’s Committee, or the district-level People’s Committee.
  • Electricity operation licenses: The provincial People’s Committees or specialized agencies authorized by them.
  • Employment service licenses: The Department of Labour, Invalids and Social Affairs where the enterprise is headquartered.
  • Labor outsourcing licenses: The Chairperson of the provincial People’s Committees where the enterprise is headquartered.

4. Importance of advisory and implementation services for license renewal

Renewal of licenses is a mandatory administrative procedure for individuals and organizations wishing to continue lawful operations after their license expiration. However, not everyone is fully aware of the appropriate duration, process, competent authority, or legal consequences of failing to comply with it. 

Advisory services play an important role in:

  • Accurately determining renewal duration: It avoids the expiration that may result in fines, suspension, or requirements for new licenses.
  • Guiding preparation of complete and valid dossiers: Many licenses require complex documents drafted with legal expertise and then submitted to the competent authority. Incomplete or misdirected dossiers may be rejected.
  • Providing advice on special cases: When licenses are required to amend their information, or are lost/ damaged or transferred of rights. 
  • Minimizing legal risks: Failure to renew on time may lead to violations, adversely affecting business operations and their reputation.
  • Saving time and effort: Advisory services enable individuals and enterprises to focus on main activities while ensuring legal compliance.

Accordingly, engaging professional legal advisors during the renewal process is a prudent choice, ensuring stable and lawful business operations while minimizing risks.

III. Questions on advisory and implementation services for license renewal

1. Is the State fee payable for license renewal?

License renewal may be subject to the State fee, depending on the type of license and regulations of the competent authority. Certain licenses such as work permits and construction permits usually require renewal fees. However, in some cases fees are not  imposed, depending on sector-specific laws or local government resolutions.

2. Circumstances under which State authorities may refuse license renewal

Renewal may be denied by State authorities in the following circumstances:

  • Invalid dossiers or late submission: Applications are submitted after expiration or lack required documents.
  • Failure to meet renewal conditions: Enterprises/individuals no longer possess the legal capacity or qualifications as prescribed by sector-specific laws.
  • Legal violations: Serious violations are committed during the validity of the prior license.
  • Changes in law and policy: Activities are no longer eligible for licensing under new regulations.
  • Non-fulfillment of financial obligations: State fee, or tax or other unfulfilled obligations need to be fully implemented for licensed activities.

To avoid refusal, individuals and enterprises must prepare complete dossiers, monitor duration, and maintain compliance throughout the regulated term.

3. Can business activities continuously conduct if the license expires without renewal?

Once the license has expired without renewal, it may not continue to be used for business activities.

Continuing operations under the expired license constitutes a legal violation and may result in: 

  • Administrative fines in the relevant sector (e.g., construction, labor, environment).
  • Suspension or revocation of the license, with severe consequences for business operations.
  • Ineligibility for renewal, requiring a new application, causing delays and additional costs.

Therefore, it is essential to closely monitor the license validity and renew it in time to ensure lawful and uninterrupted operations.

IV. NPLaw’s advisory and implementation services for renewal of licenses

NPLaw provides comprehensive advisory and implementation services for renewal of licenses, ensuring individuals and organizations comply fully with legal procedures to maintain continuous and lawful operations. Our services include advising on appropriate renewal duration, drafting complete dossiers, representing clients before competent authorities, and monitoring the handling process. With our team of experienced lawyers, NPLaw helps clients save time, avoid risks of refusal or fines, and safeguard their rights while maintaining efficient and stable operations.