Business license for retail distributions in Vietnam

Retail distribution is an important and basic activity of many foreign-invested enterprises and also domestic enterprises. Unlike domestic enterprises, foreign investors are required to meet the conditions for carrying out the retail distribution of goods. In this article, Viet An Law provides regulatory analysis and guidance for investors to apply for a business license to carry out retail distribution of goods.

Legal basis

• WTO commitments and international investment treaties to which Vietnam is a signatory to or joins;
• Investment Law 2020;
• Decree No. 09/201/ND-CP detailing the trade law and the law on foreign trade management on the purchase and sale of goods and activities directly related to the purchase and sale of goods by foreign investors and foreign-invested economic organizations in Vietnam.

Special groups of goods when applying for a business license to make retail distribution donations

Group 1: For goods not on the list of goods banned from export, import, and list of goods not distributed by Vietnamese law or not subject to restrictions under international commitments to which Vietnam is a member.

Group 2: For goods that are oil, lubricating grease;

Group 3: For goods that are rice; sugar; recorded items; books, newspapers, and magazines;

Procedures for applying for a business license for retail distribution

Application for a business license

• Application for a business license
• Explanation:
  • Explain the conditions for granting corresponding business licenses as prescribed.
  • Business plan: Describes the contents and methods of conducting business activities; presenting business plans and market development; labor needs; assessing the socio-economic impact and effectiveness of the business plan;
  • Financial plan: Report on business results based on audited financial statements of the most effective year in case it has been established in Vietnam for 01 years or more; explanation of capital, capital sources, and capital mobilization plans; enclosed with financial documents;
  • Business activities of goods trading and activities directly related to the purchase and sale of goods.
• Tax office documents prove that there is no overdue tax debt.
• Copy: Certificate of business registration; Certificate of investment registration for the sale and sale of goods and activities directly related to the purchase and sale of goods (if any).

Procedures for applying for a business license for retail distribution

• The application is sent in person or by post or by the electronic network (if eligible for application) to the Licensing Authority.
• Number of records
  • The schoolburpedthe business license to make retail distribution donations of goods in Group 1: 01 set;
  • In case of issuance of business licenses for the collection of retail distribution of goods belonging to Group 2: 02 ministries;
  • In case of issuance of business licenses for the collection of retail distribution of goods belonging to Group 3: 03 ministries.
• Within 28 working days from the date of receipt of the valid dossier, the licensing agency shall check the validity and send the dossier enclosed with the written opinion of the Ministry of Industry and Trade and the ministry of industry management for comments on the contents of the issuance of business licenses as prescribed.

Some questions about foreign investors applying for business licenses to carry out retail distribution in Vietnam

What additional conditions do companies exercise the right to distribute retail at retail establishments?

With a business license to carry out retail distribution, the company is conducted online retailing on company websites and e-commerce platforms. However, in order to retail at the retail establishment, the company must apply for a business license and establish a retail establishment.

Does the maximum ownership rate of foreign investors in the company carry out retail distribution?

Restrictions on capital contribution ratios are placed on certain conditional occupations that investors plan to register. However, the retail industry does not have a requirement for the ratio of capital contributed by investors. As such, investors can register a maximum capital ratio of 100%.

Consulting services for foreign investors applying for a business license to carry out retail distribution of Viet An Law Firm

• Advising on conditions and guiding investors to prepare necessary documents to carry out procedures for applying for business licenses;
• Representatives of investors and economic organizations to submit and process dossiers, arising with relevant agencies during the process of applying for business licenses;
• Supporting to advise and guide passengers on activities arising during the implementation of investment and business in Vietnam.

Please contact Viet An Law Firm for the fastest support.