Corporate Legal Services

Letting a Sub-License Expire: Fines and Revocation Risks

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A sub-license that has expired without renewal while the business keeps operating is, in legal terms, operating without a license. There is no single fine for all sub-licenses: each sector has its own sanctioning decree, with consequences such as suspension, deprivation of license use rights, and even revocation. This article maps the current penalty framework and prevention principles.

1. What “expired without renewal” means legally

A sub-license is a condition for lawful operation in a conditional business line. When a license expires without extension or re-issuance, the business falls into a state of failing to meet business conditions — equivalent to operating without a license.

The legal consequences come in two layers:

  • Administrative penalties under the sector-specific sanctioning decree — there is no universal fine for all sub-licenses;
  • Remedial measures: being compelled to re-apply for/extend the license, suspension of operations for a definite period, deprivation of the right to use the license for a definite period.

2. The penalty principle: sector-specific decrees only

The key point to remember: each sector has its own sanctioning decree. Fine levels may not be cross-applied from one sector to another. Examples:

  • Tourism (accommodation, travel business…): penalized under Decree 45/2019/ND-CP — before citing specific fine levels, check whether this decree has been amended after 2025;
  • Security and order (operating without/no-longer-valid ANTT Certificate): penalized under Decree 282/2025/ND-CP (effective 15 December 2025) — replacing Decree 144/2021/ND-CP;
  • Fire safety: penalized under the current fire prevention, fighting and rescue sanctioning instrument — the relationship between instruments in this field is still being clarified; consult the original text before citing;
  • Construction and housing: Decree 339/2026/ND-CP (effective 26 August 2026) has replaced Decree 16/2022/ND-CP;
  • Commerce: Decree 98/2020/ND-CP (amended by Decree 17/2022/ND-CP) — verify its current validity before citing fine levels.

The golden rule: to find the fine for a specific license, open the sanctioning decree of that exact sector and read the exact article and clause. Never invent fine levels or cross-apply them.

3. Penalty framework for enterprise registration and investment

For violations in enterprise registration and investment (untruthful declarations, late change registration/notifications, continuing to operate after the enterprise registration certificate is revoked…), the current framework is Decree 122/2021/ND-CP as amended by Decree 288/2026/ND-CP (promulgated and effective 21 July 2026).

Per research, the maximum fine in the enterprise registration field is VND 100 million (Article 4), with detailed levels in Articles 43 and 44 (including a warning framework for delays of 1–10 days). Before citing any figure, you must open the full text of Decree 288/2026 and the consolidated text of Decree 122/2021, as the provisions changed after the 2026 amendment.

4. Revocation vs. suspension vs. deprivation of license use — distinctions

These three consequences are often confused, but differ in substance:

  • Suspension of operations for a definite period: operations pause for a set time; once the period ends and the violation is remedied (license extended/re-issued), the business may resume.
  • Deprivation of the right to use a license for a definite period: the license still exists but the business is deprived of the right to use it for a set time.
  • License revocation: the license is withdrawn and ceases to be effective — the business must restart the issuance procedure from scratch to continue operating.

Revocation risk is real — both as a supplementary penalty and as a consequence of no longer meeting issuance conditions. The specific revocation conditions sit in each licensing instrument, e.g., Article 39 of Decree 98/2021/ND-CP on revocation of medical device circulation numbers. There is no “general revocation” rule for all licenses.

5. Prevention: managing license validity

  • Maintain a license-expiry register for all sub-licenses (issue date, expiry date, issuing authority, amending instrument); set reminders at least 2–3 months before expiry, since extension/re-issuance dossiers take preparation time.
  • Extend before expiry: many licenses require the extension dossier to be filed a set period before the expiry date — late filing may be treated as a fresh application.
  • Review after each legal amendment: licensing instruments and sanctioning decrees change constantly (as the 2025–2026 replacements above show); periodically verify validity so you never rely on an expired instrument.
  • Do not “run” on an expired license: continuing to operate after expiry risks not only fines but suspension and revocation — remediation always costs more than timely renewal.

Frequently asked questions

What is the fine for operating on an expired sub-license?

There is no universal fine. The fine depends on the license type and is set in the sector-specific sanctioning decree. Consult the decree of the exact sector — never cross-apply.

Can an expired license lead to revocation?

Yes, potentially. Revocation is both a supplementary penalty and a consequence of no longer meeting issuance conditions — the specific conditions are in the licensing instrument for each license type.

Is Decree 144/2021 still used for ANTT penalties?

No. Decree 144/2021/ND-CP was replaced by Decree 282/2025/ND-CP effective 15 December 2025.

Which is the current penalty framework for enterprise registration?

Decree 122/2021/ND-CP as amended by Decree 288/2026/ND-CP (effective 21 July 2026). When looking up specific fines, use the post-amendment text.

Sources

  • Law on Handling of Administrative Violations 15/2012/QH13 (amended by Law 67/2020/QH14) — general penalty framework.
  • Decree 122/2021/ND-CP (amended by Decree 288/2026/ND-CP, effective 21 July 2026) — penalties in the planning and investment field.
  • Decree 282/2025/ND-CP (effective 15 December 2025) — penalties in the security and order field; replacing Decree 144/2021/ND-CP.
  • Decree 339/2026/ND-CP (effective 26 August 2026) — penalties in construction and housing; replacing Decree 16/2022/ND-CP.
  • Decree 45/2019/ND-CP — penalties in tourism (check post-2025 amendments before citing).
  • Decree 98/2021/ND-CP — Article 39 (revocation of medical device circulation numbers).

Contact us

Facing expiring sub-licenses, or dealing with a penalty, suspension, or revocation decision? Contact FLAT Law Firm for a risk review and remediation plan under current regulations.


Disclaimer: This article provides general legal information for reference only and does not substitute legal advice for your specific case. Legal instruments may be amended; always verify the version in force at the time of application or consult a lawyer.

Transparency note: This content was quality-reviewed (QA) by FLAT’s AI Legal Council under internal procedures and submitted for approval before publication; it has not been reviewed by a human lawyer.