Legal Consultancy Centres: Fines, Authority, Limitations

What fine applies to a legal consultancy centre operating outside its registered fields?

Under Clauses 3, 5, and 6, Article 9 of Decree 82/2020/ND-CP, which provides:

Acts violating regulations on the operation of legal consultancy centres and their branches:

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3. A fine of VND 7,000,000 to VND 10,000,000 for one of the following acts:

a) Operating outside the scope prescribed by law or outside the fields stated in the operation registration certificate;

b) Failing to register the operation of a legal consultancy centre or its branch with the competent authority.

4. A fine of VND 30,000,000 to VND 40,000,000 for an organisation without legal consultancy functions conducting legal consultancy in any form.

5. Additional penalties:

a) Suspension of operation for 01 to 03 months for violations prescribed at point e, Clause 2 and point a, Clause 3 of this Article;

b) Confiscation of the operation registration certificate that was altered or corrected to falsify contents, for violations prescribed at point g, Clause 2 of this Article.

6. Remedial measures:

a) Recommending competent agencies, organisations, or persons to consider and handle documents altered or corrected to falsify contents prescribed at point g, Clause 2 of this Article;

b) Forced return of illegal gains obtained from violations prescribed at point h, Clause 2, point a, Clause 3, and Clause 4 of this Article.

Accordingly, a legal consultancy centre or its branch operating outside the scope prescribed by law or outside the fields stated in the operation registration certificate shall be fined from VND 7,000,000 to VND 10,000,000, have its operation suspended for 01 to 03 months, and be forced to return illegal gains obtained.

Accordingly, a legal consultancy centre operating outside the fields stated in its operation registration certificate shall be fined from VND 7,000,000 to VND 10,000,000, have its operation suspended for 01 to 03 months, and be forced to return illegal gains obtained.

Does the provincial People’s Committee chairman have authority to penalise such a centre?

Under point c, Clause 1, Article 88 of Decree 82/2020/ND-CP, which provides:

Determination of authority to impose administrative penalties

1. Authority to impose administrative penalties of People’s Committee chairmen at all levels:

a) Commune-level People’s Committee chairmen impose penalties for administrative violations prescribed at Clause 1, Article 48; Clause 1, Article 58; Clause 1, Article 61; and points b and c, Clause 1, Article 62 of this Decree;

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c) Provincial-level People’s Committee chairmen impose penalties for administrative violations prescribed in Chapters II, III, and IV; Articles 78, 79, and 80; and Chapter VII of this Decree.

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Under Clause 3, Article 83 of Decree 82/2020/ND-CP:

Authority to impose administrative penalties of People’s Committee chairmen at all levels

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3. Provincial-level People’s Committee chairmen have the right to:

a) Issue warnings;

b) Impose fines up to VND 30,000,000 for administrative violations in the field of judicial administration and marriage and family; up to VND 40,000,000 for administrative violations in enterprise and cooperative bankruptcy; up to VND 50,000,000 for administrative violations in the field of judicial support;

c) Suspend operations for a definite period or revoke the right to use licenses, practice certificates, practice registration certificates, legal consultant cards, notary cards, bailiff cards, or legal aid collaborator cards;

d) Confiscate exhibits and means of administrative violations;

dd) Apply remedial measures prescribed at Clause 3, Article 3 of this Decree.

Under the determination of penalty authority, a provincial People’s Committee chairman may impose fines up to VND 50,000,000 for administrative violations in the field of judicial support; suspend operations for a definite period or revoke the right to use licenses, practice certificates, practice registration certificates, legal consultant cards, notary cards, bailiff cards, or legal aid collaborator cards; and apply remedial measures prescribed at Clause 3, Article 3 of this Decree.

Accordingly, a legal consultancy centre operating outside the fields stated in its operation registration certificate shall be fined from VND 7,000,000 to VND 10,000,000, have its operation suspended for 01 to 03 months, and be forced to return illegal gains obtained.

Therefore, a provincial People’s Committee chairman has the authority to penalise a legal consultancy centre operating outside the fields stated in its operation registration certificate.

What is the statute of limitations for penalising such a centre?

The statute of limitations for penalising a legal consultancy centre operating outside the fields stated in its operation registration certificate, under point a, Clause 1, Article 6 of the 2012 Law on Handling of Administrative Violations, as amended by point a, Clause 4, Article 1 of the 2020 amended Law on Handling of Administrative Violations, provides:

Statute of limitations for handling administrative violations

1. The statute of limitations for imposing administrative penalties is prescribed as follows:

a) The statute of limitations for imposing administrative penalties is 01 year, except for the following cases:

Administrative violations regarding accounting; invoices; fees and charges; insurance business; price management; securities; intellectual property; construction; fisheries; forestry; investigation, planning, exploration, exploitation, and use of water resources; oil and gas activities and other mineral activities; environmental protection; atomic energy; management and development of houses and offices; land; dikes; the press; publishing; production, export, import, and trading of goods; production and trading of prohibited or counterfeit goods; and management of overseas workers shall have a statute of limitations of 02 years.

Administrative violations regarding tax shall follow the statute of limitations prescribed by tax administration law;

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Accordingly, the statute of limitations for imposing administrative penalties on a legal consultancy centre operating outside the fields stated in its operation registration certificate is 01 year.