The revocation of gold trading licenses is a risk that no business wants. Therefore, business owners need to know about cases where licenses can be revoked to avoid getting caught in trouble. The article below by Long Phan will provide information about cases of revocation of gold trading licenses.

Are businesses engaged in buying and selling gold required to apply for a license?

Enterprises engaged in buying and selling gold are required to apply for a business license. According to the law, gold trading is a conditional business under industry code 46624. Enterprises that want to participate in this activity must be licensed by the State Bank of Vietnam.

Specifically, businesses must meet the conditions of capital, experience, taxes and operating network. Gold trading license is issued by the State Bank of Vietnam after reviewing the business’s application dossier. Applying for a license helps strictly manage gold business activities, ensuring transparency and legal compliance of businesses in this field.

Cases of revocation of gold trading licenses

According to the provisions of Article 11 of Decree 24/2012/ND-CP, businesses that must register for gold trading activities must meet the following conditions:

• Is an enterprise established and operating in accordance with the law.
• Have a charter capital of 100 billion VND or more.
• Have experience operating in the field of gold buying and selling business for 2 (two) years or more.
• Have paid a tax amount for gold business activities of 500 (five hundred) million VND/year or more for the most recent 2 (two) consecutive years (certified by the tax authority).
• Having a network of branches and sales locations in Vietnam from 3 (three) provinces and centrally-run cities or more.

Therefore, gold trading businesses may have their licenses revoked in cases where they do not fully meet the licensing conditions as prescribed. Specifically, businesses must maintain conditions on charter capital, operating experience, tax amount paid and branch network. If these conditions are not met, the business’s license may be revoked.

In addition, according to the provisions of Clause 10, Article 24 of Decree 88/2019/ND-CP (amended by Point b, Clause 14, Article 1 of Decree 143/2021/ND-CP), referring to Clause 6, Article 24 of the Decree. 88/2019/ND-CP (amended by Point a, Clause 14, Article 1 of Decree 143/2021/ND-CP), enterprises may have their business license to buy and sell gold bars revoked for violations. Carry out the business of buying and selling gold bars through authorized agents in case of repeat violations.

Can the business re-register after the revocation of gold trading licenses

When the gold trading license is revoked, the enterprise is not allowed to continue doing business in this field. However, businesses can still apply for a new business license if they meet the prescribed conditions.

According to Article 24 of Decree 88/2019/ND-CP, businesses whose business licenses are revoked have the right to appeal or sue the license revocation decision. While waiting for the complaint or lawsuit to be resolved, the enterprise is not allowed to continue gold trading business.

To be re-issued with a gold trading license, businesses need to take the following steps:

Correct violations that led to previous license revocation. Prepare complete documents to request a license according to current regulations. Submit your application and wait for the competent authority to review and evaluate.

Re-issuance of a license depends on the level of previous violations and the ability of the business to meet business conditions at the time of re-issuance.

Consulting on legal business conditions for buying and selling gold for businesses

Long Phan will perform the following tasks to advise businesses on legal gold trading business conditions:

• Analyze regulations related to gold trading business conditions.
• Consulting on plans to meet missing or unmet conditions.
• Instructions for preparing documents to apply for a gold trading license.
• Support businesses in the process of submitting documents and explaining to competent authorities when being sanctioned.
• Consulting on building and perfecting the internal management system to meet requirements.

The revocation of gold trading licenses is a big risk for businesses. In order for business operations to not be affected, businesses need to comply with regulations and maintain business conditions. Customers who need detailed advice on this issue, please contact Long Phan via hotline 0906735386 for timely and professional support.