JOINT CIRCULAR No. 195-LB GUIDING THE REGISTRATION OF ACTIVITIES OF RESEARCH INSTITUTIONS AND TECHNOLOGY DEVELOPMENT ORGANIZATIONS

CIRCULAR

JOINT MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT - ORGANIZATION AND STAFF OF THE GOVERNMENT DECREE NO. 195/LB ON NOVEMBER 13, 1992
GUIDELINES FOR REGISTRATION OF ACTIVITIES OF ORGANIZATIONS
FOR SCIENTIFIC RESEARCH AND TECHNOLOGICAL DEVELOPMENT

On January 28, 1992, the Council of Ministers issued Decree No. 35-HĐBT on scientific and technological management work. The Decree affirms the initiative rights of all state agencies, economic organizations, social organizations, and every citizen belonging to all economic sectors in establishing scientific research and technological development organizations (hereinafter referred to as scientific and technological organizations).

In accordance with Article 15 of the Decree, these organizations must register their activities with the State Science Committee (now called the Ministry of Science, Technology and Environment) and at the provincial or centrally-administered city Science Committees.

This Joint Circular provides detailed guidance on the registration of activities of scientific and technological organizations as follows:

I. GENERAL PROVISIONS

The objects subject to this Circular are scientific and technological organizations of state agencies, armed forces units, economic organizations, social organizations, and every citizen.

Scientific and technological organizations are organizations that conduct the following activities:

- Research, experimentation, implementation, and application of new technologies, new techniques, new products, and new organizational methods;

- Production of single items or small quantities of new products with high technological levels that production facilities have not yet had the conditions to implement.

Production activities within scientific and technological organizations (except for independent experimental production organizations) must originate from the research results of the scientific and technological organization itself.

- Information - advisory services, training, and enhancement of expertise in science, technology, organization, and management.

Scientific and technological organizations may operate under the following forms: Institutes, centers, laboratories, experimental research stations as specified in Appendix IV.

Scientific and technological organizations conducting activities related to experiments on human and animal bodies; harmful substances causing environmental pollution; security, defense, etc., must necessarily obtain permission from the competent state management agency in writing for such fields and must present these documents when registering their activities.

Business units of scientific and technological organizations established in joint ventures with foreign countries are regulated by the Law on Foreign Investment and relevant guiding documents of the Board of Foreign Investment Cooperation; scientific and technological organizations established through bilateral or multilateral cooperative research between Vietnamese scientific and technological organizations and foreign organizations (including individuals with foreigners) must register their activities according to Article 15 of Decree No. 35-HĐBT dated January 28, 1992 (now the Government of the Socialist Republic of Vietnam).

Training schools and classes within scientific and technological organizations shall comply with regulations of the Ministry of Education and Training.

Business units specializing in commercial product and service production and sales within scientific and technological organizations (including organizations producing products outside their research field) are not subject to this Circular but must comply with regulations stipulated in Decree No. 388-HĐBT of the Council of Ministers regarding state-owned enterprises dated November 20, 1991, Decree No. 222-HĐBT dated July 23, 1991, and Decree No. 221-HĐBT dated July 23, 1991 of the Council of Ministers concerning specific provisions of the Company Law and the Law on Private Enterprises.

II. REGISTRATION PROCEDURES

2.1. Registration procedures.

The registration process is carried out in the following sequence:

1) All scientific and technological organizations must submit an application for registration (Appendix I) and a registration form (Appendix II) to the registration approval authorities along with the entire file as prescribed in Clauses 2 and 3 of Section 2 below, within three months from the date of the establishment decision. After this period, the establishment decision document will no longer be valid for registration purposes.

2) Upon receiving complete files, the registration approval authorities are responsible for reviewing and examining the files and must issue a certificate of registration activity to the scientific and technological organization within one month if the file is valid. If the file is invalid, they must notify the scientific and technological organization to promptly supplement the file.

If the deadline of one month is exceeded, the scientific and technological organizations have the right to appeal to the competent authorities to resolve the matter.

3) The following cases will be considered as having invalid files:

- Incomplete files as prescribed in Section 2.2 below;

- Files declared incorrectly compared to the actual review results of the competent authorities;

- Duplicate names of existing scientific and technological organizations. In this case, the registration approval authorities need to notify the organization submitting the later file (based on the date of receipt) to change its name.

4) After obtaining the certificate of registration activity, the newly established scientific and technological organizations can proceed with the procedures for engraving seals and opening accounts as stipulated in Section 2.5 below.

2.2. Provisions on files

When registering activities, scientific and technological organizations must present the following files:

1) Regarding the establishment decision

Scientific and technological organizations belonging to which level (or economic sector) shall be established by that level (or economic sector) and must comply with the specific provisions below:

a. For state scientific and technological organizations:

These organizations, which are centrally invested in, equipped, and provided with operational funds by the state, must have an establishment decision from the competent authority when registering their activities, accompanied by a written opinion from the Ministry of Science, Technology and Environment (for central agencies) or the provincial or centrally-administered city Science and Technology Management Agency (for local agencies), specifically:

- National science and technology centers (for natural sciences, social sciences, and humanities), specialized science and technology agencies with national significance, regional science centers, and territorial centers must have a decision of the Prime Minister accompanied by a document expressing the opinion of the Ministry of Science, Technology, and Environment, and a report to the Prime Minister from the Government Organization and Cadre Management Board;

- Science and technology organizations under ministries and ministerial-level agencies (which are funded and provided operational funds by the State) must have a decision of the Prime Minister, accompanied by a document expressing the opinion of the Ministry of Science, Technology, and Environment, and a report to the Prime Minister from the Government Organization and Cadre Management Board. In cases where the ministry or sector invests in equipment and provides operational funds not from the State budget, the science and technology organization only needs to present its establishment decision issued by the ministry or the head of the directly managing ministerial-level agency;

- Science and technology organizations funded and provided operational funds by the provincial budget must have a decision of the Chairman of the Provincial People's Committee or the Municipal People's Committee directly under the Central Government, accompanied by the opinion of the local science and technology management agency and a report from the Provincial Government Organization Board and the main management department;

- Science and technology organizations of state agencies after reorganization according to the spirit of Decision 324-CT dated September 11, 1992, of the Council of Ministers' Chairman, must have a decision of the managing agency if the managing agency ensures the operation of the science and technology organization through its own capital. In cases where the managing agency can only ensure part of the funding (through its own capital or assets previously provided by the State), the science and technology organization registers in the form of a collective organization, and one of the founders will be appointed by that state agency as representative in accordance with Point b, Part 3 of Circular No. 40-TC/TCT/CS dated August 22, 1992, guiding the implementation of Decision 196-CT;

b. Science and technology organizations of mass organizations and social organizations:

When registering for operation, these organizations must present their establishment decision issued by the managing agency;

c. Science and technology organizations in the collective sector:

Must have an establishment decision of the managing collective body (such as small-scale industrial cooperatives, agricultural cooperatives, etc.), or a registration application (see Appendix I) signed by all founders if the organization is a voluntary collective of scientists;

d. For science and technology organizations of private individuals:

Private individuals must submit a registration application (Appendix I) and a registration declaration (Appendix II) with the following conditions:

- Having citizen rights as prescribed by law;

- Holding a certificate of professional qualifications in the field of the applied registration;

- Not being a civil servant of the State or working in State science and technology organizations or holding positions in the administrative machinery at various levels under the election system;

- Not being an active officer in the Vietnamese armed forces;

2. The charter of the science and technology organization.

For all science and technology organizations, the charter must not contravene current laws and must clearly specify:

- The name of the science and technology organization;

- Functions, tasks, and fields of activity;

- Relationships;

- The official registered office;

- Capital, assets, and ownership regime;

The ownership regime of assets will serve as the basis for determining which economic sector the science and technology organization belongs to and will serve as the basis for stamping seals.

a. For state scientific and technological organizations:

The Charter must be issued by the Prime Minister or by the Minister or the Head of Ministries at the same level upon the authorization of the Prime Minister.

b. For social organizations and mass organizations: The Charter must be issued by the authority that decides on the establishment of the organization.

c. For collective scientific and technological organizations: The Charter shall be issued by the managing collective or approved by the Founding Council with signatures from all founding members.

d. For private scientific and technological organizations: The Charter shall be proposed by the private entity or approved by the General Meeting of Founding Members or Shareholders, with their signatures.

3) Regarding scientific manpower

All scientific and technological organizations must have a list of scientific personnel with at least ten people, and two-thirds of the total manpower must hold a bachelor's degree or higher in the field for which they seek to register activities. The list must clearly state:

+ Full name, professional qualifications, workplace (if applicable), employment status (full-time, part-time) of staff members;

+ Leadership personnel:

Leadership personnel must have a scientific curriculum vitae according to the model prescribed by the Ministry of Science, Technology, and Environment as stipulated in Appendix V and a personal curriculum vitae confirmed by the local authority.

a. For state scientific and technological organizations, leadership must have a professional qualification of associate professor or higher and management capability;

b. For scientific and technological organizations belonging to other economic sectors, leadership must have a bachelor's degree or higher (except in cases where they are recognized artisans or individuals specially acknowledged by society) while also meeting the conditions specified in Section d regarding the Decision on Establishment above.

4) Regarding capital

When registering activities, scientific organizations must have a certificate of capital from financial authorities and banks according to the statutory capital requirement - the minimum level necessary to carry out activities in the fields of scientific research and technological development as specified in Appendix III. Appendix III only specifies statutory capital for organizing activities from scientific research to experimental production and related information and advisory activities. In cases where scientific and technological organizations seek to register production activities (as defined in Part I above), the registration approval levels must apply the statutory capital categories for each industry sector issued together with Decree No. 221-HĐBT dated July 23, 1991 of the Council of Ministers detailing certain provisions of the Law on Private Enterprises; Decree No. 222-HĐBT dated July 23, 1991 of the Council of Ministers detailing certain provisions of the Law on Joint Stock Companies.

The statutory capital of state scientific and technological organizations must not be lower than the statutory capital of scientific and technological organizations in the collective and private sectors.

5) A certificate from the locality regarding the location of the scientific and technological organization's headquarters.

6) Application form for registration: as stipulated in Appendix II.

The application form must be signed by the leader of the organization.

7) Plan for organizing scientific research and technological development activities.

2.3. Hierarchical Approval Levels

According to Article 15 of Decree No. 35-HĐBT, the approval process for issuing registration certificates is as follows:

1. For scientific and technological organizations under the state and mass organizations established by central-level authorities, registration shall be made with the Ministry of Science, Technology, and Environment;

2. For scientific and technological organizations at the grassroots level, in localities, and voluntary collectives, registration shall be made with the provincial or city science and technology management agency where the organization's headquarters is located;

3. For private scientific and technological organizations, registration shall be made with the provincial or city science and technology management agency where the organization's headquarters is located.

2.4 Registration Fee Regulations

To conduct examination and evaluation procedures, the registration approval levels are permitted to collect a registration fee as prescribed by the Ministry of Finance in Circular No. 61-TC/TCT dated November 8, 1991 concerning the collection of registration fees for business operations.

2.5 Procedures for Registering Seals and Accounts.

1. The approval process for seals for scientific and technological organizations is divided according to the current regulations of the Ministry of Home Affairs. To obtain a seal, scientific and technological organizations must have the following complete documents:

- Certificate of registration for operation;

- Decision on establishment and charter of the organization as stipulated in Section 2.2 of this Circular;

After receiving all the above documents, the seal approval levels must issue seals to scientific and technological organizations within no more than ten days.

2. The registration of various types of accounts is carried out according to the current procedures stipulated in Circular No. 1950-TC/HCVX of the Ministry of Finance dated October 21, 1992 and Circular No. 505-KT/TC2 of the State Bank of Vietnam, based on the income and expenditure sources of scientific and technological organizations. Specifically, based on the capital of scientific and technological organizations as stipulated in Article 10 of Decree No. 35-HĐBT, the registration of opening various types of accounts is regulated as follows:

- For capital sourced from the state budget, the regulations of the State Treasury must be followed;

- For other sources of capital (funds from contract implementation, joint venture capital, bank loans, international organization aid...), scientific and technological organizations may open various types of accounts (including foreign currency accounts) at specialized banks.

2.6. Provisions on the Validity Period of the Registration Certificate.

The validity period of the registration certificate depends on the registered activity field:

- For specialized operational fields with practical applications, the period is two to three years;

- For long-term research fields, especially basic research, the period is five years.

2.7. Inspection and Handling of Violations

1) Forms of violation of registration regulations

- Operating without a registration certificate;

- Operating outside the registered field;

- Continuing to operate after the registration certificate has expired;

- Other activities that do not directly violate the registration regulations such as illegal activities, smuggling, tax evasion, environmental pollution, endangering national security and defense...

2) Handling violations

The levels responsible for reviewing registration shall coordinate with relevant agencies to periodically inspect the activities of scientific and technological organizations. In cases where violations are detected, these levels may apply measures ranging from administrative penalties (warnings, written reprimands) to revoking the registration activity certificate and recommending that related authorities suspend operations, confiscate seals, freeze accounts, etc., depending on the scale and severity of the registration regulation violations.

When a scientific and technological organization has its registration activity certificate revoked and its operations suspended, the levels responsible for reviewing registration must announce this through mass media (radio, television, or daily newspapers of central and local authorities at least five consecutive issues).

III. DUTIES AND RIGHTS

3.1. Duties:

Scientific and technological organizations (including those currently operating) within the scope regulated by this Circular must obtain a new registration activity certificate to operate from now on. Otherwise, their activities will be considered illegal.

Currently operating scientific and technological organizations must complete the registration process no later than three months from the date of issuance of this Circular. For state-owned scientific and technological organizations within this category, while awaiting restructuring in accordance with Decision 324-CT dated September 11, 1992 of the Council of Ministers on "Reorganizing the Network of Research Institutions and Technological Development," they may temporarily use the original establishment decision of the Council of Ministers (with confirmation from the managing agency) to proceed with registration procedures.

Within thirty days of receiving the registration activity certificate, the scientific and technological organization must publish in central and local daily newspapers at the location of its headquarters at least five consecutive issues regarding the name of the organization, address, registered field of activity, bank account numbers, telephone, telegraph, etc.

3.2. Rights: After obtaining the registration activity certificate, scientific and technological organizations will be protected by law, enjoying equal rights in scientific and technological activities such as participating in or leading state tasks, international cooperation, applying appropriate tax policies, and other benefits as stipulated by law.