Conditions for establishing an online game company in Vietnam

What is oline game business company

• An online video game service (a video game service) is the provision of players with the ability to access the network and play online video games.
• Online games are also known as online games. To play online games, it is mandatory to have a connection to the internet. Gamers will interact with each other or interact with the game’s server system in real time.
• Online game business, in other words, online video game service business is the release and supply of video games to users.
• An enterprise providing online video game services (referred to as an enterprise providing video game services) is an enterprise established under the law of Vietnam that provides video game services through the establishment of equipment systems and lawful use of video game software.

Classification of video games according to the method of provision and use of services in Vietnam

• Video games with interaction between many players simultaneously through the enterprise’s game server system (referred to as G1 games for short);
• Video games only have interaction between the player and the game server system of the enterprise (referred to as G2 games for short);
• Video games with interaction between many players but no interaction between players and the game server system of the enterprise (referred to as G3 games for short);
• Video games are downloaded over the network, without interaction between players and between players and the enterprise’s game server system (referred to as G4 games).

Principles of managing online video games

• An enterprise may provide G1 game services when it has a license to provide video game services and a Decision approving contents and scripts for each video game issued by the Ministry of Information and Communications.
• Enterprises may provide G2, G3, G4 game services when having a Certificate of registration for providing video game services and a notice of service provision for each video game.

Conditions for establishing an oline game company in Vietnam

Conditions for establishing a company

Conditions on the entity establishing the company

All organizations and individuals establishing enterprises must satisfy the following conditions:

• Organizations with legal status;
• Individuals from full 18 years old; have full capacity for civil acts;
• Not subject to the state’s prohibition from establishing an enterprise as prescribed in Clause 2, Article 17 of the Law on enterprises 2020.

Conditions on charter capital

• Depending on the industry and business size, enterprises can apply for charter capital in accordance with their financial capabilities.
• Enterprises must ensure sufficient capital contribution and the right type of assets committed when registering for business establishment within 90 days from the date of issuance of the Certificate of Business Registration, excluding the time for transporting and importing assets contributed as capital, carrying out administrative procedures to transfer ownership of assets.
• In case after 90 days from the time of commitment to contribute capital, when the actual capital contribution is insufficient, the enterprise must carry out procedures for reducing charter capital.

Conditions on the name of the business

• According to Article 37 of the Enterprise Law 2020, the name of the enterprise must ensure two elements: type of enterprise and proper name;
• The enterprise name must be affixed at the head office, branch, representative office, business location of the enterprise.
• The business name must be printed or written on transaction papers, documents and publications issued by the enterprise.
• Not falling into the prohibited cases as prescribed in Article 38 of the Enterprise Law 2020.

Conditions for head office

• The head office of the enterprise is located in the territory of Vietnam, is the contact address of the enterprise and is determined according to the boundaries of administrative units; have a phone number, fax number and email (if applicable).
• Do not locate the business office at the address of an apartment (except for apartments with commercial functions) or a group house.

Oline game trading conditions in Vietnam

G1 Game Services License Conditions

An enterprise shall be granted a license to provide G1 video game services on the network when fully meeting the following conditions:

• Being an enterprise established under the provisions of Vietnamese law, having an industry providing online video game services that has been posted on the enterprise’s National Business Registration Portal;
• Registered domain name used to provide services;
• Having sufficient financial, technical and personnel capabilities suitable to the scale of operation and according to the provisions of law;
• Take measures to ensure information security and information security.

Conditions on organizations and personnel providing G1 video game services

• Have a head office with a clear address and contact phone number.
• Having a team of video game administrators suitable to the scale of operation, ensuring at least 01 personnel to manage 2 servers.

G1 video game service provision technical conditions

The system of equipment providing video game services for all games of the enterprise must meet the following conditions:

• Ability to fully store and update players’ personal information including: Full name; date, month, year of birth; permanent registered address; ID card number/citizen identification card/passport, date of issue, place of issue; phone number, email address (if any). In case the player is under 14 years old and does not have an identity card/citizen identification card/passport, the player’s legal guardian shall decide on the registration of the guardian’s personal information to express his consent and take responsibility before law for such registration;
• The payment management system for electronic games of enterprises must be located in Vietnam and connected with Vietnamese payment support service providers, ensuring accurate and complete updates and stores and allowing players to look up detailed information about their payment accounts;
• Manage player play time from 00h00 to 24h00 daily and ensure that the total playing time of all G1 video games of a business for each player under the age of 18 does not exceed 180 minutes in 24 hours per day;
• Continuously display the results of classification of video games by age for all games provided by businesses when introducing, advertising games, providing video game services; There is a warning information with the content “Playing more than 180 minutes a day will adversely affect health” in a recognizable place in the forum of the game and on the screen of the player’s device during the game.
• There is a plan to ensure service quality, ensure the interests of players.
• Take technical and professional measures to manage the content of the game forum (if any), comply with the provisions of Clause 2 Article 23d of Decree 27/2018/ND-CP.
• There is a backup plan for equipment and connection, a data backup plan to ensure system safety when problems occur.
• There is a plan to ensure the safety and security of information and confidentiality of players’ personal information.

Conditions for granting decisions approving G1 video game contents and scripts

An enterprise shall be granted a Decision approving video game contents and scripts when fully meeting the following conditions:

• Have a license to provide video game services with a minimum validity of 01 year;
• Video game contents and scripts do not violate the provisions of Clause 1 Article 5 of Decree Decree 27/2018/ND-CP; There are no images and sounds that specifically depict acts of murder, torture, incitement to violence, bestiality, pornography, obscenity, contravention of moral traditions, culture, fine customs and customs of the nation, misrepresentation, destruction of historical traditions, violation of sovereignty and territorial integrity, inciting suicide, drug use, drinking, smoking, gambling, terrorism, ill-treatment, abuse, trafficking, women, children, and other harmful or prohibited acts;
• Video games have results classified by age suitable to game contents and scenarios as prescribed in Clauses 1 and 2, Article 31a of Decree 27/2018/ND-CP.

Take measures to manage the player’s account information that meets the following requirements:

• Connect directly in sync with the player’s personal information management system;
• Directly connect synchronously with the general game service payment system of the enterprise;
• Fully store, continuously and accurately information about the player’s use of the service including: Account name, service use time, information related to the player’s ownership of virtual items, virtual units, reward points.

Conditions for registration for providing game services G2, G3, G4

• Being an enterprise established under the provisions of Vietnamese law, having an industry providing online video game services that has been posted on the National Business Registration Portal.
• Registered domain name used to provide services in case of provision of services on the Internet.
• Conditions on personnel providing video game services
• Have sufficient financial capacity to provide video game services in accordance with the scale of operations.

Conditions on personnel providing video game services include:

• Have a head office with a clear address and contact phone number;
• Have a team of video game management personnel suitable to the scale of operation and type of service delivery.

Technical conditions for providing G2, G3, G4 video game services include:

• The payment management system for electronic games (if any) of the enterprise must be located in Vietnam and connected with Vietnamese payment support service providers, ensuring accuracy, completeness and allowing players to look up detailed information about their payment account;
• Have a plan to ensure the quality of service and the interests of players;
• Take measures to ensure information security and information security.

G2, G3, G4 Video Game Service Announcement

• At least 30 working days before officially providing G2, G3, G4 video game services, enterprises must send a notice according to Form No. 21 in Appendix I enclosed with Decree 27/2018/ND-CP for each video game to the Ministry of Information and Communications (Department of Radio, television and electronic information).
• Within 10 working days after receiving a valid notification, the Ministry of Information and Communications (Department of Radio, Television and Electronic Information) shall issue a certificate of notification of provision of online video game services according to Form No. 22 in Appendix I enclosed with Decree 27/2018/ND-CP. After the above-mentioned time, if the Ministry of Information and Communications (Department of Radio, Television and Electronic Information) has not received comments, the enterprise may provide the game according to the expected date stated in the notification.
• Enterprises must additionally notify the Ministry of Information and Communications (Department of Radio, Television and Electronic Information) if in the process of providing video game services one of the following contents changes:
• Game name;
• Results of classification of video games by player age;
• Type of video games being offered (G2, G3, G4);
• Scope and method of service provision: Domain name, IP address (when provided on websites), video game distribution channel (for mobile devices).

Conditions for foreign investors to access the Vietnamese market

Currently, according to WTO commitments, foreign investors are not allowed to establish 100% of companies for online game business, but are only allowed to enter into a joint venture with a Vietnamese company that has been granted a G1 game license to release its video games. Specifically, the capital contribution ratio of foreign investors is only allowed to account for a maximum of 49%.

If you want to set up an online game company, please contact Viet An Law Firm for specific support!