Not doing business at the registered address?
Recently, a group of dozens of students spoke out against LeaderTalks English Center and Study Abroad Consulting (LeaderTalks for short) for false advertising, violating its commitment to teaching the online English course "English Mastery" and shirking responsibility despite the tuition fees ranging from 39.95 million VND to 44 million VND, depending on the form of payment, whether in one or multiple installments.
Information published on LeaderTalks' website on June 4 said the center is located in Hiep Thanh Ward, District 12 (HCMC).
In addition to being upset about the quality of teaching and the behavior of LeaderTalks, students also expressed doubts about the center's operating license. Accordingly, on the website and in the memorandums with students, LeaderTalks said that this is a brand owned by An Ca Company Limited, later An Ca Joint Stock Company (An Ca), both located in Hiep Thanh Ward, District 12, Ho Chi Minh City.
However, when they arrived at the headquarters to work directly, many students were shocked because this address was a private residence and the homeowner did not know about the existence of LeaderTalks or An Ca. "We really hope that the authorities will intervene to verify and clarify and protect the rights of me and hundreds of other students studying at LeaderTalks," said Ms. Nguyen Thi Thanh Huong (living in Ho Chi Minh City), representative of the group of students.
When investigating the address that LeaderTalks listed on the website, Thanh Nien reporters realized that this was actually just a residential address.
Speaking to Thanh Nien Newspaper reporter, Mr. Ho Tan Minh, Chief of Office of the Department of Education and Training of Ho Chi Minh City, confirmed that LeaderTalks English Center and Study Abroad Consulting has not been licensed to operate in Ho Chi Minh City. At the same time, Mr. Minh also said that to know which units have been licensed, citizens can look them up online on the Education Services Information Page of the Department of Education and Training of Ho Chi Minh City at dichvugiaoduc.hcm.edu.vn.
"In addition to foreign language centers, IT training units, life skills and other educational activities must apply for an operating license from the Department. In cases where the Department does not grant a license, state management rights belong to the district or county agency where the unit is registered to do business," Mr. Minh informed.
In the "English Mastery" course, each student will be given an account to log into LeaderTalks' private system to receive a link to the daily Zoom class, access learning materials and submit assignments.
Responding to the reason why LeaderTalks does not have a license to operate in Ho Chi Minh City, Ms. Dao Thi Hang, Director of the center, responded to Thanh Nien Newspaper reporters that the company operates in any location, then registers for an operating license in the locality where the branch is located. Specifically, Ms. Hang said that the An Ca branch located in Gia Nghia City, Dak Nong Province has been licensed to operate by the Dak Nong Department of Education and Training.
The female director added that since the beginning of March, An Ca branch has transferred the management rights of LeaderTalks to LeaderTalks Company Limited, a unit with the same operating address as An Ca branch in Gia Nghia City, Dak Nong province.
Branches do not have the right to apply for a license?
Citing Article 84 of the 2015 Civil Code and Clause 1, Article 44 of the 2020 Enterprise Law, lawyer Nguyen Ngoc Phu, Director of NPLaw Law Firm (HCMC), said that a branch has no legal status, operates entirely dependent on the company, and is only allowed to conduct conditional business lines when the company has been granted a license. Thus, the obligation to carry out licensing procedures belongs to the company, not the branch.
"The application for a conditional business license must be made at the state agency where the company is headquartered. For example, if the company has an address on its business registration certificate in Ho Chi Minh City and wants to establish a foreign language center to operate in the education sector, then according to Clause 20, Article 1 of Decree 135/2018/ND-CP, the company must apply for an operating license from the Ho Chi Minh City Department of Education and Training," Mr. Phu gave an example.
Lawyer Nguyen Ngoc Phu, Director of NPLaw Law Firm (HCMC), provides legal advice on the issue of applying for a conditional business license.
Lawyer Ngoc Phu also said that many businesses not only operate at headquarters and branches but also do business online and this form is very popular. "Online courses are considered e-commerce products, so in addition to meeting the criteria for educational activities according to legal regulations, companies must also pay attention to the conditions and procedures for doing business in the online environment," lawyer Phu shared.
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