Establish a Company in the New Phu Dien Ward

Following the merger and administrative boundary adjustments under the Resolution of the Hanoi People’s Council (HDND), many wards and communes in the capital have been reorganized to streamline the administrative system and enhance state management efficiency. Among them, the New Phu Dien Ward of Phu Dien District has been officially established through the consolidation of several neighboring wards.

This development requires organizations and individuals planning to establish a company in the New Phu Dien Ward to update relevant information to ensure compliance with legal regulations while saving time and costs. The following article by Viet An Law Firm provides the latest updates and detailed guidance for clients wishing to establish a company in the New Phu Dien Ward.

Updated Information about the New Phu Dien Ward

On April 29, 2025, the Hanoi People’s Council issued Resolution No. 19/NQ-HDND (2025) on the reorganization of commune-level administrative units and the establishment of 126 new wards and communes in Hanoi.

On April 24, the People’s Council of Bac Tu Liem District (Term III, 2021–2026) held its 21st session, during which the Council discussed and approved several important matters. One of them was the resolution on the plan to reorganize commune-level administrative units in Bac Tu Liem District.

According to the approved plan, Bac Tu Liem District will restructure its current wards into five new grassroots administrative units, including: Tay Tuu, Phu Dien, Xuan Dinh, Dong Ngac, and Thuong Cat.

The New Phu Dien Ward was established by merging:

• The entire natural area and population of the former Phu Dien Ward (Bac Tu Liem District);
• Most of the natural area and population of Phuc Dien Ward (Bac Tu Liem District) and Mai Dich Ward (Cau Giay District);
• Part of the natural area and population of Co Nhue 1 Ward (Bac Tu Liem District).

The New Phu Dien Ward after the Merger

With a total natural area of 7.28 km² and a population of 43,346 people, the current headquarters of the Phu Dien Ward Party Committee and People’s Committee will continue to serve as the new headquarters of the Party Committee, People’s Council, and People’s Committee of Phu Dien Ward.

The current Phu Dien Ward Cultural and Sports Center will serve as the headquarters of the Fatherland Front and other socio-political organizations in the new ward.

Administrative boundaries:

• To the East: adjacent to the grassroots administrative units of Cau Giay and Nghia Do, along Pham Van Dong Street;
• To the West: adjacent to Tay Tuu Ward, following the existing administrative boundary;
• To the South: adjacent to Tu Liem and Xuan Phuong, along Ho Tung Mau Street and National Highway 32;
• To the North: adjacent to Dong Ngac Ward, following the current ward boundary.

Change of Business Registration Authority in the New Phu Dien Ward

According to Official Dispatch No. 24/CV-BCDTKNQ18 on the orientation for organizing specialized agencies under the Provincial and District People’s Committees, and Official Dispatch No. 05/CV-BCDTKNQ18 on supplementing and finalizing the plan for administrative restructuring, the Department of Planning and Investment has been merged into the Department of Finance, unified under the name Department of Finance.

Previously, the Business Registration Office under the Department of Planning and Investment was responsible for handling business registration procedures and issuing or adjusting Enterprise Registration Certificates.

Currently, the competent authority for issuing Enterprise Registration Certificates in Hanoi is the Business Registration and Corporate Finance Office – Hanoi Department of Finance.

This office is responsible for receiving and processing enterprise registration applications within the New Phu Dien Ward area and throughout Hanoi city.

Update on Tax Procedures and New Tax Administration by Area

From March 1, 2025, Vietnam’s tax administration system has undergone significant restructuring to streamline operations and enhance management efficiency.
Specifically, under Decision No. 381/QD-BTC dated February 26, 2025, the General Department of Taxation has officially been renamed the Department of Taxation.

Previously, each province and centrally governed city had its own Tax Department, totaling 63 provincial Tax Departments nationwide.

However, as of March 1, 2025, these 63 departments have been reorganized into 20 Regional Tax Sub-departments and no more than 350 district or inter-district tax teams.

Accordingly, Hanoi falls under Regional Tax Sub-department I, comprising 25 tax teams, and the New Phu Dien Ward is now under the management of the Bac Tu Liem District Tax Team.

Conditions for Establishing a Company in the New Phu Dien Ward

Conditions for Establishing a Company in the New Phu Dien Ward

Charter Capital and Legal Capital

• Charter capital refers to the total assets contributed or committed to be contributed by the members when establishing the company.
• There is no minimum capital requirement, except for industries requiring legal capital (e.g., real estate, insurance, etc.).
• Enterprises must fully contribute the registered charter capital within 90 days from the date of issuance of the Enterprise Registration Certificate.
  If the contribution is not completed within this period, the company must register to adjust the charter capital within 30 days thereafter.

Eligible Founders

• Individuals and organizations are entitled to establish enterprises, except for those prohibited by law, such as:
• Persons under 18 years old or legally incapacitated individuals.
• Officials, public employees, or active-duty officers of the armed forces.
• Persons currently serving prison sentences or under a business prohibition order.
• State-owned enterprises holding 100% state capital (except authorized representatives contributing capital).

Business Lines

• Enterprises are only allowed to operate in industries not prohibited by law.
• If operating in a conditional business sector, the company must fully satisfy all relevant legal requirements.
• The list of conditional business sectors is provided in Appendix IV of the 2020 Investment Law.

Company Name

• The company name must consist of two components: the type of enterprise and a distinctive name.
• Names must not duplicate or confuse with existing registered enterprises.
• It is prohibited to use names of state agencies, political organizations, or armed forces.
• The enterprise name must be displayed at the company’s headquarters and on transaction documents.

Business Address

• The company’s headquarters must be located within Vietnam’s territory, with a clear and specific address.
• It is not permitted to register a residential apartment or collective housing as the business address.
• The enterprise should provide contact information such as phone number and email (if available).

Legal Representative

• The legal representative must be an individual at least 18 years old with full civil act capacity.
• The representative is not required to be a capital contributor.
• They may be Vietnamese or foreign nationals holding positions such as Director or Chairman of the company.
• A company may have one or multiple legal representatives, depending on its charter.

Procedures for Establishing a Company in the New Phu Dien Ward

Step 1: Determine the Type of Enterprise

• Investors can choose from several common types of businesses, including:
• Single-Member Limited Liability Company (LLC): Suitable for individuals who wish to retain full control over their business.
• Multi-Member Limited Liability Company (LLC): Appropriate for groups of co-founders or joint investors.
• Joint Stock Company (JSC): Ideal for investors planning to raise capital, list shares, or expand their business scale.

Step 2: Prepare the Company Formation Documents

• A basic set of application documents includes:
• Application for Enterprise Registration
• Company Charter
• List of Members or Founding Shareholders
• Valid copies of personal identification documents (ID card, Citizen ID, or Passport)
• Power of Attorney (if an authorized person applies)
• For companies with foreign investment elements, additional documents are required, such as:
• Legal status documents of the foreign investor;
• Consular legalization of relevant documents (if any);
• Approval documents from the Investment Registration Authority.

Step 3: Submit the Application for Enterprise Registration

The application can be submitted to the Business Registration and Corporate Finance Department, Hanoi Department of Finance, via the National Business Registration Portal.

Processing time typically ranges from 3 to 5 working days.

Step 4: Create the Company Seal

After receiving the Enterprise Registration Certificate (ERC), the company must create its official seal and manage it internally in accordance with the company charter.

Step 5: Open a Corporate Bank Account and Notify the Authority

The newly established company must open a corporate bank account and notify the Department of Finance (Business Registration Office) of the account information.

Step 6: Register and Declare Initial Taxes

• After establishment, the company must complete initial tax procedures, including:
• Registering for electronic invoices
• Registering the VAT calculation method
• Purchasing a digital signature
• Submitting the initial tax declaration to the Regional Tax Sub-Department
• Registering employees and social insurance contributions (if applicable)

Above is the consultation content regarding the service to establish a company in the New Phu Dien Ward provided by Viet An Law Firm. We sincerely thank our valued clients for their interest and attention. For any inquiries or further assistance related to procedures to establish a company in the New Phu Dien Ward, please contact Viet An Law Firm for the fastest and most effective legal support.