The Government has issued Decree No. 50/2016/ND-CP dated 1 June on administrative penalties for violations of the rules on investment activities. Decree 50 takes effect on 15 July and replaces Decree No. 155/2013/ND-CP.
Some notable matters in Decree 50 include:
- To be in line with the 2014 Law on Investment and Law on Enterprises, Decree 50 introduces some violations which are subject to administrative penalties such as failure to register an investment (in the form of share purchase or capital transfer), failure to comply with investment restrictions; failure to register additional legal representative(s) or failure to obtain an establishment licence for an operating office of a foreign party in a business cooperation contract
and so on;
- The penalties for various violations have been increased (e.g. failure to register changes in business registration details is subject to VND15 million penalty instead of VND5,000,000 as stated in Decree 155).
For more information, click PwC Legal Vietnam NewsBrief_New Decree on administrative penalties for_ violations in investment activities.
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