Establish coffee shops in Vietnam

Nowadays, in large cities of Vietnam, coffee shops have become a lifestyle and everyday habit of the major citizen. Foreign coffee brands as well as local ones are appearing in every corner. People come as they need a place to relax, chatting; some come to work or study alone; or maybe they take a cup of coffee while waiting until the rain stops. However, currently the coffee business sector in Vietnam has witnessed some death of large brands which were seriously invested. Meanwhile, some new entrants are successfully building their brands and become attentive. Coffee shops business is considered as a double-edged sword, which can bring huge revenue but may be not successful as you expect. However, this sector is still attractive as high demand of the market.

One important thing to which investors should pay attention is legal issue because all business activities is stipulated by the laws. Moreover, when our business is complied with the law, we will feel comfortable to run our business. In order to give our Clients a hand during their preparation time, Viet An Law Firm collects and provides some information as follows:

Step 1: Establish catering company (coffee shops business)

If investors are Vietnamese, the procedures for establishment of the company are simple and can be done quickly, just need to apply for the Business Registration Certificate at the Department of Planning and Investment of provinces where the head office is located.

If investors are foreigners, there are two options: establish foreign-owned companies or purchase shares, purchase capital to Vietnamese companies.

If foreign investors want to directly establish foreign-owned companies, they have to apply for the Investment Registration Certificate first, then apply for the Business Registration Certificate.

If foreign investors purchase shares, purchase capital contribution to Vietnamese companies, they do not have apply for the Investment Registration Certificate. They just need to register to contribute capital, purchase shares, purchase capital contribution at the Department of Planning and Investment. After being granted the approval, the company shall change members, shareholders as stipulated by the Law on Enterprises.

Step 2: Apply for the Food Safety Certificate

Because catering as well as coffee shops business are conditional business sectors, which means in order to legally provide catering services, the company must have the Food Safety Certificate. This sublicense is required as food and beverage directly affect our health.

An application for Food Safety Certificate includes:

• A written request for Food Safety Certificate;
• Copy of the Business Registration Certificate;
• Description on facilities, devices, equipment meeting requirements of food safety;
• Health certificates (issued by clinics of districts and above) of the owners and employees directly making food;
• Certificates of food safety training of the owners and employees directly making food.

Place of submission: Department of Health.

Within 15 days from the date of submission of full and valid application, Department of Health shall directly assess food safety satisfaction of the facilities; if the restaurant meets the requirements, the Food Safety Certificate shall be granted; in case of refusal, the Department shall issue written explanation providing reasons.

Some legal issues relating to coffee shops business that investors should pay attention to:

• Lease agreement;
• Hiring and training;
• Initial tax declaration, pay the license tax and annual tax payment;
• Contracts on material supply signed with suppliers;
• Protect intellectual property rights (the brand the coffee shops);
• Commercial franchise.

Investment and enterprise legal consulting services at Viet An Law Firm:

• Consult about regulations and procedures for establishment of company in Vietnam;
• Consult about regulations and procedures for foreign investors in Vietnam;
• Consult about application, documents for Investment Registration Certificate, Business Registration Certificate, sublicense…;
• Draft, submit the application and work with state-authorized agencies when Clients grant authorization;
• Consult about conditional business sectors;
• Consult about after-establishing issues: tax, labor, intellectual property, commercial franchise, contracts, social insurance…

If you need advice about regulations and procedures to establish coffee shops in Vietnam, please feel free to contact Viet An Law Firm for more information!