What is service provision? How are the conditions for providing consulting services regulated in commercial law?

What is service provision? What is consulting activity?

Pursuant to the provisions of Clause 9, Article 3 of the 2005 Commercial Law, the concept of service provision is as follows:

Service provision is a commercial activity, whereby one party (hereinafter referred to as the service provider) is obliged to perform services for another party and receive payment; The service user (hereinafter referred to as the customer) has the obligation to pay the service provider and use the service according to the agreement.

Pursuant to the provisions in Clause 1, Article 5 of Decree 87/2002/ND-CP on the concept of consulting activities as follows:

Consulting activities are activities of collecting and processing information, applying professional knowledge, detecting problems, proposing solutions, plans, planning projects and monitoring and evaluating by Vietnamese professional organizations and individuals carried out independently and objectively at the request of consulting users.

What are the conditions for providing consulting services?

Pursuant to the provisions of Article 6 of Decree 87/2002/ND-CP on conditions for providing specific consulting services as follows:

– For consulting organizations:

+ Be an enterprise, science and technology organization or other organization with professional capacity and experience in the field of consulting, established and registered to operate in accordance with the provisions of law;

+ Have headquarters and working facilities;

+ There are at least 02 people who meet the conditions specified in Clause 2 of this Article.

– For individuals engaged in consulting activities:

+ Have a college, university or higher degree in the field of consulting practice or have a certificate of consulting practice in cases where it is required by law;

+ Have good moral character;

+ Have full civil act capacity;

+ Not in a state of being prosecuted for criminal liability or being subject to administrative measures in the field of consulting practice.

+ Must work in a certain consulting organization.

– Officials and civil servants are allowed to participate in providing consulting services in cases where such participation does not contravene the Ordinance on Cadres and Civil Servants.

Principles of consulting activities are specified in Article 7 of Decree 87/2002/ND-CP specifically as follows:

– Comply with the law.

– Be responsible before the law for all your professional activities.

– Comply with professional ethics.

– Ensuring independence, honesty, objectivity and science of consulting activities.

– Keep confidential information received from consulting service users during the process of providing consulting services unless the customer agrees or is otherwise prescribed by law.

How are the rights and obligations of consultants regulated?

Regarding rights, based on Article 8 of Decree 87/2002/ND-CP, the rights of consultants are specifically stipulated as follows:

– Participate equally in the selection or bidding for consultant selection.

– Negotiate and sign consulting contracts.

– Collect consulting fees as agreed in the consulting contract.

– Cancel or unilaterally suspend the implementation of the consulting contract and request compensation for damages in case the consulting service user violates the obligations committed in the consulting contract.

– Request consulting service users to provide information and documents necessary for the implementation of the consulting contract.

– Hire domestic and foreign experts to carry out consulting contracts.

– Conduct activities to promote the export of consulting services.

– Establish a consulting organization according to the provisions of Clause 1, Article 6 of this Decree.

– Participate in domestic, regional and international consulting associations according to the provisions of law.

– Exercise other rights as prescribed by law.

Regarding obligations, based on Article 9 of Decree 87/2002/ND-CP, the obligations of consultants are specifically stipulated as follows:

– Fulfill all obligations in the consulting contract.

– Create favorable conditions for users of consulting services to file requests for intellectual property rights protection for results received from the process of implementing consulting contracts, unless otherwise specified in the consulting contract.

– Compensate for damages to users of consulting services when violating the obligations committed in the consulting contract.

– Implement professional liability insurance.

– Fulfill all financial obligations according to the provisions of law.

From the legal bases given above, in order to be able to provide consulting services, your company needs to meet the conditions in Article 6 of Decree 87/2002/ND-CP and pay attention to your rights and obligations when participating in providing consulting services.