Conditions for setting up a company in Vietnam for express delivery service

The express delivery service industry is an industry with great potential for development in today’s open and integrated economy. Express delivery services help businesses save time, costs and facilitate business activities to take place smoothly and quickly. However, because express delivery services involve valuable assets and goods of businesses, the law requires owners to Express delivery businesses need to meet certain conditions. What are conditions for setting up a company in Vietnam for express delivery service?

Legal basis

• Law on Postal 2010;
• Law on Enterprise 2020;
• Decree 06/VBHN-BTTTT detailing the implementation of a number of contents of the Law on Postal.
• Decree No. 01/2021/ND-CP on business registration.

Market access conditions for express delivery services

According to Vietnam’s commitments in the WTO, Vietnam is open to foreign investors to access the market for express delivery services in Vietnam. Express delivery service means a service including: collection, transportation and delivery domestically or internationally.

Vietnam commits unlimitedly to express delivery services, except for the commercial presence method that needs to ensure:

• Capital contribution ratio: not more than 51%.
• 5 years after joining WTO, it is allowed to set up a company with 100% foreign investment capital.

Conditions for setting up a company in Vietnam for express delivery service

Pursuant to Clause 3, Article 3 of the Law on Postal 2010 stipulates: “Postal service is a service of accepting, transporting and delivering postal items by methods from the sender’s location to the recipient’s location via the postal network, excluding electronic means”. Thus, in legal language, express delivery services are understood as a part of postal services.

Conditions for establishing a express delivery company include:

Firstly, have an Enterprise Registration Certificate for postal activities or an Investment Registration Certificate in the postal sector;

Secondly, having financial capacity and personnel suitable to the business plan according to the content of the license application:

• For the case of providing postal services within the province, inter-province, the enterprise must have a minimum legal capital of 02 billion Vietnam dong;
• In case of providing international postal services, enterprises must have a minimum legal capital of 5 billion Vietnam dong (The minimum capital must be shown in the postal business registration certificate or the postal Investment Investment Certificate in Vietnam).

Thirdly, have a feasible business plan in line with regulations on postal rates and quality of postal services.

Finally, take measures to ensure information security and safety for people, postal items and the postal network.

Prepare documents to apply for a postal license for an international express delivery company

Pursuant to Clause 4, Article 1 and Clause 2, Article 2 of Decree No. 25/2022/ND-CP amending and supplementing Article 6 of Decree 47/2011/ND-CP stipulating that the dossier for a postal license is made into 1 set is the original. Which includes:

• An application for a postal license (made according to the form in Appendix I);
• Copy of Enterprise Registration Certificate, company charter (if any); Business plan;
• Form of contract for provision and use of postal services in accordance with the provisions of the law on post.
• Samples of logos, trademarks, special symbols or elements of the enterprise’s identification system displayed on postal items (if any) .
• The postal service tariff list is in accordance with the provisions of the law on postal services.
• The published postal service quality standards apply in accordance with the provisions of the law on post.
• Regulations on the limit of liability for compensation in case of damage, the customer complaint settlement process, and the time limit for complaint settlement in accordance with the postal legislation;
• Agreement with other enterprises, foreign partners in Vietnamese, for the case of cooperation in providing one, several or all stages of the postal service requested for a license;
• Documents on legal status of foreign partners have been consular legalized.
• Franchise contract with enterprises providing postal services (if any) .

The express delivery company must be solely responsible for the legality, accuracy and truthfulness of the declared records and information. When fully preparing the application, the business entity submits the application through the online public service system to the competent state agency in charge of post. Within 20 days from the date of receipt of the dossier, the competent state agency shall verify and grant the postal license to the company.

Procedures for granting a postal license to an international express delivery company

Pursuant to Clause 6, Article 1 of Decree No. 25/2022/ND-CP amending and supplementing Article 8 of Decree 47/2011/ND-CP stipulating the order and procedures for granting postal permits and written notification of postal operations:

• Enterprises and organizations applying for a postal license and a written confirmation of the notice of postal activities shall submit their dossiers via the online public service system to the competent state agency in charge of post as prescribed in Article 9. and take responsibility for the legality, accuracy and truthfulness of the records.

The notification of postal activities shall be made within 07 working days from the first day of postal operation.

• Within 03 working days from the date of receipt of the dossier, the postal competent state agency shall refuse to grant the postal license and the written confirmation of the notice of postal operations in the case of incorrect competent authority and clear the reasons.
• From the day on which the application is received, the grant of a postal license and a written confirmation of the notice of postal activities shall be effected within the following time limit:
  • 20 days for verification postal license;
  • 10 working days for verification and issuance of written confirmation of postal activity notice.
• Within the above-said time limit, in case the dossier does not meet the requirements, the competent state agency in charge of postal services must notify the enterprise or organization of the contents that need to be amended and supplemented.
• Within 15 working days from the date of notification, the enterprise or organization is responsible for amending and supplementing the dossier as required.
• In case an enterprise or organization fails to amend or supplement the application file as required or has modified or supplemented it but fails to meet the requirements, the postal competent state agency shall issue a notice of refusal to grant a postal license, a written confirmation of the notice of postal operations and clearly stating the reason.
• The notification of the postal competent state agency according to the above mentioned timelines shall be made in writing through the online public service system.
• The results of handling procedures for granting postal licenses, written confirmations of postal activities are paid directly or via the public postal service.

Business registration dossier

Enterprises prepare full business registration dossiers including:

• Enterprise registration application form;
• Company charter;
• List of members of limited liability companies with two or more members, partnerships, list of founding shareholders and shareholders being foreign investors, for joint-stock companies. List of authorized representatives for foreign shareholders being organizations;
• Valid copies of documents certifying membership.

Within a period of 03-05 working days from the date of receipt of a valid application, the Business Registration Office will issue a Enterprise Registration Certificate to the enterprise.

Customers wishing to advice on conditions for setting up a company in Vietnam for express delivery service, please contact Viet An Law Firm for the fastest and best support!