The latest form of notice on leasing a private gold business? Will there be a penalty for not notifying?

When leasing a private gold business, within what time limit must the business owner notify the Business Registration Authority?

Leasing to private enterprises is regulated in Article 191 of the Law on Enterprises 2020 as follows:

Leasing a private enterprise

The owner of a private enterprise has the right to lease his entire private enterprise but must notify in writing with a notarized copy of the lease contract to the Business Registration Authority and tax authority within 03 working days from the effective date of the lease contract. During the lease term, the private business owner is still responsible before the law as the owner of the private business. The rights, obligations and responsibilities of the owner and tenant for the business activities of a private enterprise are specified in the lease contract.

According to the above regulations, when leasing a private enterprise to trade in gold, the business owner must notify the Business Registration Authority and the tax authority within 03 working days from the effective date of the lease contract.

Note: during the lease term, the owner of a private gold business is still responsible before the law as the owner of a private business.

The rights, obligations and responsibilities of the owner and tenant of a private enterprise for the business operations of this enterprise are specified in the lease contract.

Latest form of notification on leasing private gold trading enterprises?

According to Appendix II-6 Issued together with Circular 01/2021/TT-BKHDT, the latest form of notice on leasing private gold trading enterprises currently has the following form:

Is there a penalty for not notifying a private gold trading enterprise?

Penalties for leasing private enterprises to trade in gold without notifying the business registration authority are specified in Point a, Clause 1, Article 50 of Decree 122/2021/ND-CP as follows:

Violation of other notification obligations

1. Fine from 10,000,000 VND to 15,000,000 VND for one of the following acts:

a) Failure to notify or not notify on time to the business registration authority or tax agency about business leasing for private enterprises.

In case there is a violation of tax laws, it will be handled according to regulations on sanctioning administrative violations in the tax field;

b) Failure to notify or not notify on time to the business registration authority where the enterprise is headquartered when there is a change in information about the authorized representative of the owner or member of the limited liability company who is an organization or company;

c) Failure to notify or not notify on time to the business registration authority about the time and duration of business suspension or resumption.

2. Remedial measures:

a) Force notification of private enterprise leasing to the business registration authority and tax agency in case of failure to notify for violations specified in Point a, Clause 1 of this Article;

b) Force notification when there is a change in information about the authorized representative of the owner or member of a limited liability company that is an organization or company to the business registration authority in case of failure to notify for violations specified in Point b, Clause 1 of this Article;

c) Force notification of the time and duration of business suspension or business resumption to the business registration authority in case of failure to notify for violations specified in Point c, Clause 1 of this Article.

According to Clause 2, Article 4, Decree 122/2021/ND-CP stipulates the fine levels as follows:

Fine level

…

2. The fines specified in this Decree are the fines applicable to organizations (except the fines specified in Point c, Clause 2, Article 28; Points a and b, Clause 2, Article 38; Article 62 and Article 63 of this Decree are the fines applicable to individuals). For the same administrative violation, the fine for individuals is equal to 1/2 (one-half) of the fine for organizations.

Thus, failure to notify about leasing a private gold business can result in an administrative violation with a fine ranging from 10,000,000 VND to 15,000,000 VND.

In case there is a violation of tax law, it will be handled according to regulations on sanctioning administrative violations in the tax field.