On November 21, 2013, the Government promulgated Decree No. 194/2013/ND-CP on the re-registration, transformation of foreign-invested enterprises and renewal of investment license of investment projects under form of business cooperation contract
Accordingly, a foreign-invested enterprise already granted investment license before July 01, 2006, may decide on its re-registration, transformation of enterprises and management and operational organization in accordance with the provisions of the Enterprise Law, the Investment Law and this Decree; a foreign-invested enterprise established before July 01, 2006, of which operational duration has been expired as prescribed in investment license after July 01, 2006, not yet do procedures for dissolution of enterprises and has request to be entitled to continue operation must re-register before February 01, 2014.
Foreign-invested enterprises of which operational duration have been expired under investment license after July 01, 2006, but not yet dissolved and have request to be entitled to continue operation may re-register if satisfying the following conditions: The business lines of enterprises do not get involved in trades banned business, which must satisfy conditions as prescribed by law at time of re-registration (In case of conditional trades); projects must be consistent to planning of: Urban infrastructure, planning of land use, planning of construction… Enterprises commit to self-take responsibilities for obligations and transactions performed from time of operation expiry to time of re-registration; to fulfill financial obligations with State and must have equity capital; in case enterprises don’t have equity capital, they must commit to increase equity capital at least equal to charter capital within 3 years after re-registration. Upon expiry of time limit mentioned above, enterprises which fail to do re-registration must do procedures for dissolution, operational termination as prescribed by law.
This Decree takes effect on January 15, 2014.
