Conditions for establishing an online game company in Vietnam

Nowadays, due to the demand for online game services and online games, the online game business is growing. This has led to the establishment of many online game companies. What should organizations and individuals pay attention to when establishing a business company in this field? In the article below, Viet An Law will analyze some conditions for establishing an online game company in Vietnam.

Vietnam regime governing online game business

Current legal regulations governing online game business include:

• Decree 103/2009/ND-CP on regulations on cultural activities and public cultural service business, amended and supplemented by Decree 01/2012/ND-CP, Decree 79/2012/ND-CP, Decree 113/2013/ND-CP, Decree 110/2018/ND-CP, Decree 142/2018/ND-CP;
• Decree 72/2013/ND-CP on management, provision, and use of Internet services and online information, amended and supplemented by Decree 27/2018/ND-CP;
• Decree 121/2021/ND-CP on the business of online games with prizes for foreigners.

List of business lines related to online games

Conditions for establishing an online game company in Vietnam

In addition to the conditions for establishing an enterprise under the Enterprise Law 2020 such as name, head office address, type, founding entity, etc., organizations and individuals establishing an online game business company need to pay attention to the following conditions:

Conditions for online game business

Pursuant to Article 35 of Decree 103/2009/ND-CP, amended and supplemented over time, the conditions and business activities of online games include:

• Online game stores must be at least 200m away from primary, secondary, and high schools;
• Equipment must ensure sound and image quality; the form of equipment must be suitable for Vietnamese aesthetics.

When operating, organizations and individuals doing business in online games must comply with the following regulations:

• The content of the online game must be healthy and not violate the prohibitions in Article 3 of Decree 103/2009/ND-CP;
• It must not operate after 10 pm to 8 am.
• It is strictly forbidden to organize the business of online games with a gambling nature.

Conditions for online game business

Online gaming services provide players with access to the network and the ability to play online games. Pursuant to Article 35 of Decree 72/2013/ND-CP, online gaming includes:

• Electronic games with interaction between many players simultaneously through the enterprise’s game server system (referred to as G1 games);
• Electronic games with interaction only between players and the enterprise’s game server system (referred to as G2 games);
• Electronic games with interaction between many players but no interaction between players and the enterprise’s game server system (referred to as G3 games);
• Electronic games are downloaded over the network, with no interaction between players and between players and the business’s game server system (referred to as G4 games).

Accordingly, enterprises are allowed to conduct business in G1 online electronic game services when they meet the following conditions:

• Is an enterprise established pursuant to Vietnamese law, with the business line of providing online electronic game services that have been posted on the enterprise’s National Business Registration Information Portal;
• Registered domain name used to provide services;
• Have sufficient financial, technical, and human resources capacity suitable for the scale of operation and according to regulations: Have a head office with a clear address and contact phone number; Have a team of online game administrators suitable for the scale of operation, ensuring at least 01 administrator for 2 servers;
• Have measures to ensure information safety and information security.

Enterprises are allowed to provide online game services G2, G3, and G4 when they meet the following conditions:

• Is an enterprise established pursuant to Vietnamese law, with the business line of providing online electronic game services that have been posted on the enterprise’s National Business Registration Information Portal.
• Registered domain name used to provide services in case of providing services on the Internet.
• Conditions for personnel providing online game services include: Having a head office with a clear address and contact phone number and having a team of online game administrators suitable for the scale of operation and type of service provision.
• Have sufficient financial capacity to provide electronic game services appropriate to the scale of operations.
• Technical conditions for providing online game services G2, G3, and G4 include: The payment management system for online games (if any) of the enterprise must be located in Vietnam and connected to Vietnamese payment support service providers, ensuring accuracy, completeness, and allowing players to look up detailed information about their payment accounts; Having a plan to ensure service quality and player rights; Having measures to ensure information safety and information security.

Conditions for the business of online games with prizes

Online games with prizes are games of chance organized on online game machines with prizes in which players pay money to participate and can win prizes in money. Subjects allowed to play at business locations are foreigners and Vietnamese people residing abroad who legally enter Vietnam with a passport or international travel document issued by a competent foreign authority and have a valid residence period in Vietnam.

Pursuant to Article 5 and Article 20 of Decree 121/2021/ND-CP, conditions for conducting business in electronic games with prizes include:

• Enterprises with tourist accommodation establishments that have been ranked 5 stars by competent state management agencies pursuant to the provisions of the Law on Tourism and guiding documents;
• Have an area to arrange a Business Point that meets all the prescribed conditions;
• Have a person to manage and operate the Business Point that meets the prescribed conditions and standards;
• Have a minimum charter capital of 500 billionVND and in the fiscal year immediately preceding the year the enterprise submits the application for a Certificate of eligibility to do business, the enterprise must have made a profit;
• Have a business plan for electronic games with prizes that ensure maintaining security, order, and social safety according to the provisions of law.

Note the conditions for establishing an online game company in Vietnam

Enterprise registration procedures

To establish an online game business company, it is necessary to apply for an enterprise registration certificate at the Business Registration Office of the Department of Planning and Investment where the head office is located.

• Enterprise registration dossier depending on the type of enterprise under Decree 01/2021/ND-CP.
• Enterprise establishment dossiers are submitted in one of the following ways: directly, via postal service, or electronically at the National Business Registration Information Portal (https://dangkykinhdoanh.gov.vn).
• Time to process business registration dossier: 03 working days.
• Note for foreign direct invested companies (FDI), before carrying out the procedure of registering to establish a business, it is necessary to apply for an Investment Registration Certificate.

Procedures for applying for a license to provide online game services

Pursuant to Article 35 of Decree 72/2013/ND-CP, as amended and supplemented by Decree 147/2024/ND-CP, enterprises providing G1 game services must carry out the following procedures:

• Apply for a License to provide online game services
• Apply for a Decision to release the G1 video game online.

For enterprises providing G2, G3, and G4 game services, it is necessary to apply for a Certificate of registration for providing online game services and a notification of service provision for each online game.

Accordingly, the application for a license in the above cases is submitted to the Ministry of Information and Communications (Department of Radio, Television and Electronic Information).

Procedures for applying for a license to operate electronic games with prizes

After registering to do business in the field of electronic games with prizes, enterprises that do business in electronic games with prizes must apply for a Certificate of eligibility to do business in electronic games with prizes.

Accordingly, the enterprise submits 01 set of documents requesting a Certificate of eligibility for business to the Ministry of Finance.

Note, at least 15 days before opening a prize-winning electronic game business, the enterprise must notify in writing the Ministry of Finance, the business registration agency, the Department of Finance, the Provincial Police, and the local Tax Department for monitoring and management.

Above are some notes when establishing an online game business company conditions for establishing an online game company in Vietnam. For any difficulties or problems, please contact Viet An Law for the best advice and support.