- What types of enterprises can foreign investors establish?
According to the regulations on establishing economic organizations for foreign investors at point b, clause 1, Article 22 of the Investment Law 2020 as follows:
- A foreign investor establishing an economic organization shall satisfy market access conditions applicable to foreign investors specified in Article 9 of the Investment Law 2020;
- Before establishing an economic organization, a foreign investor must have an investment project and carry out the procedures for issuance or amendment of an Investment Registration Certificate (IRC), except for the establishment of a small or medium-sized creative start-up enterprise or creation of a creative start-up investment fund in accordance with the law on support for small and medium-sized enterprises.
Accordingly, with regard to foreign investors, specifically foreign organizations, when investing in Vietnam, must have an investment project and carry out procedures for the issuance and adjustment of IRC and the establishment of economic organizations (economic organizations must meet market access conditions for foreign investors specified in Article 9 of the Investment Law 2020).
Simultaneously, according to the regulations on enterprise registration documents in Articles 20, 21, and 22 of the Investment Law 2020 for the following types: partnerships, limited liability companies, and joint stock companies, a copy of the IRC is required when submitting the application for Enterprise Registration Certificate.
Therefore, a foreign organization can establish an enterprise in the form of a partnership, limited liability company, or joint stock company if he/she wishes to invest in Vietnam.
• What are the procedures for establishing various types of foreign investment enterprises (FDI)?
- Application dossier for an enterprise registration:
+ A partnership: Pursuant to Article 22 of Decree 01/2021/ND-CP;
+ A limited liability company with two or more members, Joint Stock Company: Pursuant to Article 23 of Decree 01/2021/ND-CP;
+ A one-member limited liability company: Pursuant to Article 24 of Decree 01/2021/ND-CP.
- Application procedures
+ Submit directly at counters 15, 16, 17, One-Stop shop at Da Nang City Administration Center (24 Tran Phu, Thach Thang Ward, Hai Chau District, Da Nang City).
+ Submit the application dossier via the National Business Registration Portal (http://dangkykinhdoanh.gov.vn)
- Competent agency: Da Nang City Business Registration Office.
- Processing time: 03 working days.
- Result: Enterprise Registration Certificate.
- Note:
+ For members that are foreign organizations, copies of the organization's legal documents must be consularly legalized.
+ The passport of the legal representative/authorized representative must be notarized and translated into Vietnamese.
+ For owners, members, and shareholders who are organizations, the List of Legal Representatives or Authorized Representatives in Appendix I-10 Circular 01/2021/TT-BKHDT must be attached to the application.
- What are the conditions for establishing a joint stock company?
Condition | Specific content |
Establishment entity | - To establish a joint stock company, there must be a minimum of 03 founding shareholders, with no maximum limit on the number. Accordingly, during its operation, a joint stock company must always have at least 03 shareholders (point b, clause 1, Article 111 of the Investment Law 2020). - Shareholders can be organizations or individuals (point b, clause 1, Article 111 of the Investment Law 2020). |
Company name | - The enterprise's Vietnamese name must include two components in the following order (Article 37 of the Investment Law 2020): + Type of enterprise: written as “Cong ty co phan” or “Cong ty CP.” + Proper name: Proper name is written with letters in the Vietnamese alphabet, such as the letters F, J, Z, and W, numerals, and symbols. - Before registering an enterprise name, kindly refer to the names of registered enterprises in the National Database on Business Registration. |
Charter Capital | Currently, no regulation on the minimum charter capital must be contributed when establishing an enterprise, Except for some cases where the law stipulates that enterprises must ensure a minimum amount of capital to operate in that business line; please refer to: Some business lines require capital when registering an enterprise. |
Business line | - The enterprise shall select the level 4 business lines in Vietnam Standard Industrial Classification issued with Decision 27/2018/QD-TT and write them on the Application for enterprise registration or Notification of changes to enterprise registration - Conditional business lines prescribed in other legal documents shall be written according to the business lines referred to in such legal documents. - Business lines not included in Vietnam Standard Industrial Classification but prescribed in other legal documents shall be written according to the business lines referred to in such legal documents. - Business lines neither included in Vietnam Standard Industrial Classification nor other legal documents, the business registration authority shall consider writing them to the National Enterprise Registration Database provided such business lines are not prohibited business investment and concurrently notify them to the Ministry of Planning and Investment (General Statistics Office of Vietnam) for addition as new business lines. |
For conditional business lines: Conditional business lines are the essential contents mentioned in the Investment Law 2020. Accordingly, a conditional business line is a sector in which the implementation of investment and business activities in that sector meet necessary conditions for national defence, national security, social safety, social ethics, and public health reasons |
- What to note when establishing a single-member limited liability company (LLC)?
Note | Specific content |
Name | - The Vietnamese name of a single-member LLC must include two components in the following order: + Type of enterprise: written as “cong ty trach nhiem huu han” or “cong ty TNHH”. + Proper name: Proper name is written with letters in the Vietnamese alphabet, such as the letters F, J, Z, W, numbers, and symbols. - Before registering an enterprise name, kindly refer to the names of registered enterprises in the National Database on Business Registration. The Business Registration Office has the right to approve or reject the proposed name for registration according to the provisions of the Law, and the decision of the Business Registration Office is final. - Do not use a single-member LLC’s name (in both Vietnamese and foreign languages) and abbreviated names that are identical to or cause confusion with the name or abbreviated name of another enterprise, except for the names of enterprises that have been dissolved or declared bankrupt by the Court. - Cases, where a name is considered confusing with the name of a registered enterprise, are specifically stipulated in Article 41 of the Enterprise Law 2020. - Note that in cases where the enterprise name must not infringe on industrial property rights specified in Article 19 of Decree 01/2021/ND-CP. |
Headquarters | The headquarters of a single-member LLC is located in the territory of Vietnam, is the enterprise's contact address, is positioned on the basis of administrative boundaries and units and has a phone number, fax number, and email (if any). |
Business line | - Single-member LLC selects a level 4 business line in Vietnam Standard Industrial Classification issued with Decision 27/2018/QD-TT to fill in business lines. In case of registering more detailed business lines than a level four business line, the enterprise will select a level four economic industry first. Then, the enterprise writes down the detailed business line right below the level four one, which must be consistent with the selected level four business line. As such, the business line of the single-member LLC is the written one. - Conditional business lines prescribed in other legal documents shall be written according to the business lines referred to such legal documents. - Business lines not included in Vietnam Standard Industrial Classification but prescribed in other legal documents shall be written according to the business lines referred to in such legal documents. - Business lines neither included in Vietnam Standard Industrial Classification nor other legal documents, business registration agencies shall consider writing them in the National Enterprise Registration Database provided such business lines are not prohibited from business investment, and concurrently notify the Ministry of Planning and Investment (General Statistics Office of Vietnam) for addition as new business lines. |
Charter Capital | There is no minimum capital requirement when establishing a single-member LLC unless there are some cases where the law stipulates that enterprises must ensure a minimum amount of capital to operate in those business lines. |
- What are the advantages and disadvantages of a limited liability company?
- For single-member limited liability company
+ Advantages:
• Investors can be an individual or an organization (wider than compared to private enterprises);
• The owner has full authority to decide all issues related to the company's operations;
• Having legal entity status, the investor has limited liability within the scope of charter capital, thus limiting risks when conducting production and business activities;
• Could raise capital through bond issuance.
+ Disadvantages:
• When contributing capital, the owner must carry out procedures to transfer ownership of the contributed assets to the company, thereby limiting the investor's ability to use the contributed assets;
• Capital cannot be raised by issuing shares thus, the company will not have much capital to carry out large-scale business activities;
• If there is a need to mobilize additional capital contributions from other individuals or organizations, the company has to implement procedures to convert the enterprise type to a limited liability company with two or more members or a joint stock company.
- For limited liability companies with two or more members
+ Advantages:
• The number of members is neither too small nor too many (from 2 - 50 members), and members are usually people who know and trust each other, so managing and operating the company is more straightforward and not too complicated as a joint stock company;
• Having legal entity status, company members only have limited liability for the company's activities within the scope of their contributed capital, thereby limiting the risk;
• Regulations on the purchase and transfer of capital contributions among company members are strictly regulated by law. Accordingly, the company can easily control members' capital contribution, limiting the entry of strangers into the company.
+ Disadvantages:
• Capital mobilization is limited due to not being able to issue shares, thus limiting the scale and ability to expand industry sectors;
• The limitation of 50 capital contributors restricts the ability to raise capital of this business form compared to a joint stock company.;
• The limited liability regime, in some cases, reduces the trust of partners that are willing to associate and cooperate with the company.
- What are the advantages and disadvantages of a joint stock company?
- Advantages:
+ Shareholders only take limited liability for the company's debts and other property obligations within the scope of their capital contribution, which will minimize the risks of damaging personal assets;
+ Ability to raise capital is high through issuing shares to the public, which is a unique characteristic that only joint stock companies have;
+ There is no limit to the number of shareholders; it can mobilize capital worldwide. Therefore, joint stock companies have the most extensive ability to mobilize capital;
+ Shareholders can easily and flexibly transfer, purchase, sell, and inherit shares through purchasing shares on the stock market;
+ Large scale of operations and ability to expand business in most industry fields;
+ The company's operations are highly effective due to the independence between management and ownership;
+ Compensation of shareholders in management positions can be included in company operating expenses to reduce corporate income tax payable;
+ All business decisions are collected with shareholders' opinions, so management and administration are highly transparent.
- Disadvantages:
+ The management and operation of a Joint Stock Company is complicated due to a large number of shareholders, in which many people do not know each other, and there could even be a division into shareholder groups with antagonistic interests;
+ Business and financial confidentiality is limited because the company must disclose and report to shareholders;
+ The management and operation of joint stock companies are also more complicated, especially in terms of finance and accounting.
- What are the advantages and disadvantages of a partnership?
- Advantages:
+ A partnership combines the personal credibility of many people. Due to the partnership regime, the partnership members have unlimited liability. Partnership members are usually individuals with high professional qualifications and reputations. Therefore, the Partnership Company easily creates trust for business partners.
+ Company management is not too complicated due to the limited number of members.
+ A compact and easy-to-manage organizational structure suitable for small and medium enterprises.
+ It is easier for banks to lend capital and postpone debt due to the unlimited liability regime of partnership members.
+ Having legal entity status (clause 2, Article 177 of the Enterprise Law 2020), the partnership is recognized as a legal entity and can independently participate in relationships on its behalf. This maintains enterprises’ stability and protects them from unexpected changes, such as events happening to its members.
- Disadvantages:
+ Due to the partnership regime with unlimited liability (point dd, clause 2, Article 181 of the Enterprise Law 2020), the risk level of partnership members is high.
+ The general partners are the legal representatives of the company and jointly organize the company's daily business operations (clause 1, Article 184 of the Enterprise Law 2020), so they are not capable of transferring their/contributed capital to another individual or organization without the consent of the other general partner.
+ Partnership companies are not allowed to issue any securities (clause 3, Article 177 of the Enterprise Law 2020). Therefore, the company's capital mobilization will be limited, and members will add their own assets or accept new members.
+ General partners may not act as the owner of a sole proprietorship. They may not act as a general partner of another partnership unless he/she obtains consent from other general partners (clause 1, Article 180 of the Enterprise Law 2020).
+ A general partner who withdraws from the company shall still be jointly liable with all his/her assets for the partnership’s debts arising prior to the termination date of the partner status within 02 years (clause 5, Article 185 of the Enterprise Law 2020).
+ A partnership does not have a clear distinction between company assets and personal assets; thus, despite its legal entity status, it is not independent in being liable for the company's debts.
- Document applications for capital contribution, share purchase, and capital contribution purchase?
After receiving written approval for capital contribution, share purchase, or capital contribution purchase from the Investment Registration Agency:
- In case of enterprise registration amendment due to conversion of enterprise type: Document applications shall comply with Clauses 1, 2, 3, 4, Article 26 of Decree 01/2021/ND-CP.
- In case of enterprise registration amendment due to change in charter capital, stake, and holdings, Document applications shall comply with Article 51 of Decree 01/2021/ND-CP.
- In case of enterprise registration amendment due to changing members of a limited liability company with two or more members: Document applications shall comply with clauses 1 and 2, Article 52 of Decree 01/2021/ND-CP.
- In case of enterprise registration amendment due to the replacement of the owner of a single-member limited liability company, Document applications shall comply with clause 1, Article 53 of Decree 01/2021/ND-CP.
- What are the differences between branches, representative offices, and business locations?
Criteria | Branch | Representative office | Business location |
Concept | A dependent unit of the enterprise with the task of performing all or part of the functions of the enterprise, including the function of authorized representative. The branch's business line must be consistent with those of the enterprise (clause 1, Article 44 of the Enterprise Law 2020). | A dependent unit of the enterprise with the task of acting as the authorized representative in the interests of the enterprise and protecting those interests. A Representative office is not permitted to conduct business functions of the enterprise (Clause 2, Article 44 of the Enterprise Law 2020). | The location where an enterprise conducts specific business activities (clause 3, Article 44 of the Enterprise Law 2020). |
Business functions | Yes. | No. | Yes. |
Business line | Registered in all business lines registered by the head office | Authorized representatives only | Registered for a number of business lines that the head office has registered. |
Location | Can be located in a different province/city from where the enterprise is headquartered and can be established domestically or abroad. (clause 1, Article 45 of the Enterprise Law 2020) | Can be located in a different province/city from where the enterprise is headquartered, can be established domestically or abroad. (clause 1, Article 45 of the Enterprise Law 2020) | Enterprises can establish a business location at a different address where the enterprise's head office or branch is located (point a clause 2, Article 31 of Decree 01/2021/ND-CP) |
Seal, operating license | - Have its own seal (clause 2, Article 43 of the Enterprise Law 2020); - Have a separate certificate of operation. | - Have its own seal (clause 2, Article 43 of the Enterprise Law 2020); - Have a separate certificate of operation. | - No private seal. - Have a separate certificate of operation. |
Name | The name of the branch must include the name of the enterprise with the phrase "Chi nhanh" for the branch (Article 40 of the Enterprise Law 2020) | The name of the representative office must include the name of the enterprise with the phrase "Van phong dai dien" for representative offices (Article 40 of the Enterprise Law 2020) | The name of the business location must include the name of the enterprise with the phrase ‘Dia diem kinh doanh’ for a business location (Article 40 of the Enterprise Law 2020) |
Sign the contract; invoice | - Allowed to sign economic contracts; - Allowed to use and issue invoices. | - Not allowed to sign economic contracts; - Not allowed to register or use invoices. | - Not allowed to sign economic contracts; - Not allowed to register or use invoices. |
Tax obligations | - Have a separate 13-digit tax code on the Certificate of Registration (clause 5 Article 8 of Decree 01/2021/ND-CP); - Independent accounting (must have separate invoice) or dependent accounting. | - Have a separate 13-digit tax code on the Certificate of Registration (clause 5 Article 8 of Decree 01/2021/ND-CP); - Not allowed to register or use invoices - Declare taxes independently of the company at the tax authority where the representative office is located; - Dependent accounting. | - No separate tax code (clause 6, Article 8 of Decree 01/2021/ND-CP; - Location in the same province as the head office: Head office declares and pays taxes; - Location other than the province with the head office: register for a dependent tax code and declare at the local Tax Department; - Dependent accounting. |
Payable taxes and fees | - License fees; - VAT tax; - Corporate income tax; - Personal income tax. | - Personal income tax. |
- Licensing fee |
Establishment procedures | Establishment applications according to clause 1, Article 31 of Decree 01/2021/ND-CP | Establishment applications according to clause 1, Article 31 of Decree 01/2021/ND-CP | Establishment applications according to clause 2, Article 31 of Decree 01/2021/ND-CP |
Change of business registration information | - Must follow tax procedures related to the relocation in accordance with regulations of the Law on taxation. - Send a notification of changes in registration information to the Business Registration Office where the branch is located (Article 62 of Decree 01/2021/ND-CP). | - Must follow tax procedures related to the relocation in accordance with regulations of the Law on taxation. - Send a notification of changes in registration information to the Business Registration Office where the representative office is located (Article 62 of Decree 01/2021/ND-CP. | - Only need to send a notification of changes in registration information to the Business Registration Office where the business location is located (Article 62 of Decree 01/2021/ND-CP). |
Purpose of establishment | Enterprises wishing to open a business in many fields can sign contracts and issue invoices to customers; Operating facilities in provinces and cities other than the province and city where the company's headquarters is located. | For enterprises wishing to explore market research, monitor trademark violations, and not do business at their facilities in provinces and cities where their headquarters are not located without business needs. | For enterprises wishing to open a facility specialized in one field with simple procedures and operations, operating in the same province/city where the company's headquarters is located. |
- Is it possible to register the same headquarters address of two or more enterprises?
According to Article 42 and other provisions of the Enterprise Law 2020, no law prohibits two or more companies from registering their headquarters at the same location, providing that this location is exact and is truly the headquarters of 2 or more of these enterprises. For example, in case both companies rent offices in the same building, and on the same floor, the enterprise must clearly write the address number on which floor or the symbol at the place where this enterprise works is different from other companies.
The company must prepare relevant documents to confirm business location when registering for a Business License. As such, companies can depend on the rental contract of the house or office where their headquarters is located. Thus, each company will have a different lease contract, which clearly shows that the lease of this location for the two companies is different.
Thus, as the law does not restrict 02 or more companies from registering their headquarters in the same location, 02 companies can still register one location as their headquarters.
- What are the procedures for the change to the contents of enterprise registration?
- Relocation of headquarters address: comply with clause 2, Article 47 of Decree 01/2021/ND-CP.
- Change of enterprise name: comply with cause 1, Article 48 of Decree 01/2021/ND-CP.
- Change of general partners: comply with clause 1, Article 49 of Decree 01/2021/ND-CP.
- Replacement of legal representatives of a Limited Liability Company or Joint Stock Company: comply with clause 1, Article 50 of Decree 01/2021/ND-CP.
Note:
+ In case of relocating an enterprise’s headquarters address to a district, province, or central-affiliated city other than where the enterprise is headquartered, which leads to the change of its tax authority, the enterprise must carry out all tax procedures related to relocation in accordance with the provisions of the law on taxation.
+ The change of the enterprise’s name does not affect the enterprise’s rights and obligations, and the Enterprise Code Number remains the same.
+ Decisions signed and sealed by the Company Owner being the organization (if any) of the Foreign Company.
+ The enterprise is responsible for registering such change within ten (10) days from the change date (clause 2, Article 30 of the Enterprise Law 2020).
- What is an export processing enterprise? What are the characteristics of export processing enterprises?
According to clauses 20 and 21, Article 2 of Decree 35/2022/ND-CP, export processing enterprises refer to enterprises performing export processing functions in an export processing zone, industrial park, and economic zone. In particular, export processing refers to manufacturing exported commodities and providing services for producing exported products and exportation.
The operating area of export processing enterprises is specified in clause 2, Article 26 of Decree 35/2022/ND-CP.
- Characteristics of export processing enterprises
+ Export processing enterprises specialize in the production of consumer goods for the purpose of exporting them to foreign markets.
+ Export processing enterprises must belong to export processing zones.
+ All goods processed by the enterprise must be exported abroad.
+. Enterprises wishing to become an export processing enterprise must declare to the Customs authority.
+ Export processing enterprises play a critically important role in the development of countries and territories.
- What are the procedures for establishing an export processing enterprise?
Pursuant to clause 1, Article 26 of Decree 35/2022/ND-CP, the procedures for establishing an export processing enterprise are prescribed as follows
(1) Where the process for the establishment of an export processing enterprise coincides with the process of granting the investment registration certificate
- The investor shall be required to submit the full text of commitment regarding its competence in conformance to customs inspection and supervision conditions under the law on customs duties, together with application documents for the grant of the investment registration certificate under the law on investment.
- Investment registration agencies issuing investment registration certificates shall inscribe the objectives of the establishment of an export processing enterprise on the investment registration certificate when issuing that investment registration certificate
(2) Where the process for establishment of the export processing enterprise does not coincide with the process for granting the investment registration certificate
- The investor must submit a set of application documents to the investment registration agency where the export processing enterprise is located. The set of application documents shall include the following:
+ Documents on the investment project required by law on investment;
+ The full text of the commitment regarding its competence in conformance to customs inspection and supervision conditions under the law on customs duties.
- The investment registration agency shall grant the certificate of registration of the export processing enterprise to the investor within 03 working days of receipt of all required documents prescribed herein with respect to the investment projects that are not classified into the group of investment projects not subject to the requirements for the grant of the investment registration certificate under the law on investment;
(3) With respect to the investment project of the investor of which consent to the investment policy is required under the law on investment
- The investor must submit the commitment regarding its competence in conformance to customs inspection and supervision conditions under the law on customs duties, together with the request documentation for consent to the investment policy for the investment project under the law on investment.
- The investment registration agency shall grant the certificate of registration of the export processing enterprise to the investor within 03 working days of receipt of the written consent to the investment policy:
+ Not classified into the group of investment projects subject to the requirement concerning application for the investment registration certificate;
+ Entry of objectives of establishing the export processing enterprise in the investment registration certificate when granting the investment registration certificate under the law on investment.
The authority to issue, amend, and revoke investment registration certificates: According to Article 39 of the Investment Law 2020.
- When should preferential policies for export processing enterprises be applied?
Pursuant to Article 26 of Decree 35/2022/ND-CP regulating export processing zones and export processing enterprises, in addition to the investment objective of establishing an export processing enterprise stated in the Certificate, to enjoy investment incentives and tax policies applicable to free trade zones, the enterprise needs confirmation from a competent customs agency that it conforms to customs inspection and supervision conditions according to the provisions of the law on custom duties before its official entry into operation. This is stipulated in clause 10 Article 1 of Decree 18/2021/ND-CP. After completing the inspection and confirming that it meets all conditions, the enterprise can enjoy the preferential policies of the free-trade zone.
- What is the conversion of an enterprise?
- Conversion of a limited liability company into a joint stock company
- The conversion of a state-owned enterprise into a joint stock company shall comply with relevant laws.
- A limited liability company can be converted into a joint stock company (Article 202 Enterprise Law 2020) by the following methods:
+ Without raising additional capital from other organizations and individuals or selling stakes;
+ By raising additional capital from other organizations and individuals;
+ By selling all or part of the stakes to one or some organizations and individuals;
+ Combining the above methods and other methods.
- The conversion shall be registered with the business registration authority within 10 days from the day the conversion is complete.
- Conversion of a joint stock company into a single-member limited liability company (Article 203 Enterprise Law 2020)
- A joint stock company can be converted into a single-member limited liability company as follows :
+ A shareholder receives all shares of the other shareholders;
+ An organization or individual other than a shareholder receives all shares of all shareholders;
+ Only 01 shareholder remains in the company.
- Within 15 days from the time only 01 shareholder remains in the company, an application for conversion shall be submitted to the business registration authority where the enterprise is registered.
- Conversion of a joint stock company into a multiple-member limited liability company (Article 204 Enterprise Law 2020)
- A joint stock company can be converted into a multiple-member limited liability as follows:
+ Without raising additional capital or selling stakes;
+ By raising additional capital from other organizations and individuals;
+ By transferring all or part of the shares to other organizations and individuals;
+ When only 02 shareholders remain in the company;
+ Combine the above methods and other methods.
- The conversion shall be registered with the business registration authority within 10 days from the day the conversion is complete.
- Conversion of a sole proprietorship into a limited liability company, joint stock company, or partnership (Article 205 Enterprise Law 2020)
The owner of a sole proprietorship may convert it into a limited liability company, joint stock company, or partnership if the following conditions are fully satisfied:
- The converted enterprise must satisfy all conditions to be granted an enterprise registration certificate:
+ Registered business lines are not prohibited from business investment.
+ The name of the enterprise is set in accordance with Articles 37, 38, 39, and 41 of the Enterprise Law 2020.
+ Have valid enterprise registration documents.
+ Fully pay the enterprise registration fee according to the law on fees and charges.
- The owner makes a written commitment to take personal responsibility for all unpaid debts and pay them when they are due with all of their assets;
- The owner has a written agreement with the parties of ongoing contracts that the new company will take over and continue executing these contracts.
- The owner has a written commitment or agreement with other limited partners to continue hiring the existing employees of the sole proprietorship.
Note:
- For cases where a limited liability company is converted into a joint stock company, A joint stock company converts into a one-member limited liability company, or a limited liability company with two or more members, The converted company obviously inherits all lawful rights and interests and is responsible for debts, including tax debt, labor contracts and other obligations of the converted company.
- For cases where a sole proprietorship is converted into a limited liability company, joint stock company, or partnership, the converted company obviously inherits all lawful rights and obligations of the sole proprietorship from the date of issuance of the enterprise registration certificate. The owner of a sole proprietorship is personally responsible for all of his or her assets for all debts incurred before the date the converted company is granted an enterprise registration certificate.
- What needs to be done after establishing a company?
The company needs to conduct the following procedures after establishment:
- Posting announcement of enterprise establishment (Article 32 of the Enterprise Law 2020).
- Display the enterprise’s name its headquarter (Clause 4, Article 37 of the Enterprise Law 2020).
- Declare and pay license fees. Currently, newly established enterprises are exempt from license fees in the first year of establishment or production - business according to Article 3 of Decree No. 139/2016/ND-CP amended and supplemented by point c Clause 1 Article 1 Decree 22/2020/ND-CP. However, the enterprise still needs to submit a license fee declaration.
- Register and activate an electronic digital signature (USB Token). (Decree 123/2020/ND-CP)
- Open a bank account and register to declare and pay taxes electronically.
- Register to purchase and issue electronic invoices.
- Choose the value-added tax (VAT) calculation method.
- Organization of the accounting apparatus (Article 1 and Article 2 of the Law on Accounting 2015)
