Establish a company in Vietnam manufacturing ventilation equipment

To eliminate unpleasant odors and excessive moisture, bring in outside air, and maintain air circulation in buildings, warehouses, and factories, ventilation devices were created. How does Vietnamese law regulate the issue of establishing a ventilation equipment manufacturing company? Viet An Law Firm will advise in the article below.

Overview of procedures for establishing a company manufacturing ventilation equipment

Industry code for manufacturing ventilation equipment

According to Decision 27/2018/QD-Ttg promulgating Vietnam’s economic industry system, enterprises manufacturing ventilation equipment can register one of the following industry codes :

Some companies produce ventilation equipment in Vietnam

Thien Phong Trading and Technical Company Limited

Headquartered in Go Vap District, Ho Chi Minh City, Thien Phong Company sells ventilation and cooling equipment with more than 10 years of experience. The company’s business code is 0312864774.

An Hung Production and Trading Company Limited

An Hung Production & Trading Company Limited was established in 2002, under Business Registration Certificate No. 0101294405. During more than 22 years of operation, the company has become one of the pioneers in the field domestic industrial fan production. With many years of experience, a team of highly specialized engineers and a modern equipment system, An Hung Industrial Fans is a leader in providing ventilation, dust extraction, odor extraction, smoke extraction and other solutions. Fire protection, dust filter, exhaust gas filter.

DEC Ventilation Pipe Joint Stock Company

DEC Vietnam Air Duct Company is a 100% Taiwanese-owned company, specializing in manufacturing ventilation duct systems for large projects in countries such as Japan, Korea, Taiwan and many large enterprises in Vietnam. .

With a team of excellent engineers, skilled and dedicated workers, the company is committed to always providing clients with the best products and services. The company was established in Vietnam in 2013 under Business Registration Certificate No. 0106382285, inheriting and promoting the values of DEC – one of the leading units in Taiwan in the field of air duct manufacturing. , air duct accessories, and providing consulting, design, construction services as well as solutions for air conditioning and ventilation systems for factories, industrial and civil works.

Note market access conditions for foreign investors

According to Vietnam’s commitments within the WTO framework, companies manufacturing ventilation equipment fall under the category of providing services related to production in sections CPC 884 to CPC 885.

Accordingly, for services related to production, foreign investors are allowed to establish 100% foreign-owned enterprises in Vietnam to do business in manufacturing ventilation equipment.

Type of company that produces ventilation equipment

Pursuant to the Enterprise Law 2020, companies manufacturing and installing equipment and ventilation systems can be established in various forms.

• Sole proprietorships;
• Single-member limited liability company (LLC);
• Multiple-member LLC;
• Joint stock company;
• Partnerships.

Depending on the number of members contributing capital, clients consider choosing the appropriate type. For example: If a business has 2 contributing members, it can become a multiple-member LLC or a partnership, a joint stock company must have at least 3 shareholders.

Establish a company in Vietnam manufacturing ventilation equipment

Procedures for obtaining an Investment Registration Certificate

For enterprises manufacturing ventilation equipment with foreign capital, it is necessary to apply for an Investment Registration Certificate because this is an important document component in the application for an Enterprise registration certificate.

This procedure is specifically regulated in Decree 31/2021/ND-CP with a 3-step process:

Procedures for obtaining an Enterprise Registration Certificate

After the client has provided all the documents required by Viet An Law, the unit will proceed to draft the documents for the client. Depending on the type of registration, the dossier components are different.

After that, Viet An Law will take the steps to apply for an Enterprise Registration Certificate:

Some points to note

Notes on the process of installing the ventilation system

Ventilation equipment is made up of many different parts, of which the air duct is the most important part. Based on National Standard TCVN 13581:2023, it is stipulated that the types of ventilation pipes that need to be installed must ensure the following criterias:

• Inside the air ducts equipment, electrical wires, cables, and other types of pipes for toxic gases, flammable gases, explosive gases, and liquids must not be installed.
• Installation of flammable or explosive gas transportation systems or installation in flammable or explosive environments must have anti-static grounding.
• Wind pipes passing through the roof must have measures to protect against rain and waterproofing. Wind drafts rising above the roof must have anchors, firmly fixed, and able to withstand wind loads.
• Do not anchor or fix the building’s lightning protection system.
• Outdoor air ducts must be tightly sealed to prevent rainwater from entering the system. Materials used for outdoor air ducts must be able to withstand the effects of weather.
• With insulated air ducts, there must be measures to protect against moisture and protect the insulation layer.

Ensuring the ventilation system when installed according to standards will contribute to enforcing fire prevention regulations and avoiding damage to the project and other subjects.

Note the taxes that need to be paid after the establishment

After completing the company registration procedures and being granted IRC and ERC by the Department of Planning and Investment, the enterprise must file an initial tax declaration with the tax authority and pay taxes as follows:

License fee

According to Article 4 of Decree 139/2016ND-CP, as amended and supplemented by Decree 22/2020/ND-CP, the license tax rate that ventilation manufacturing enterprises must pay is:

In addition, based on Clause 8, Article 3 of Decree 139/2016/ND-CP amended and supplemented by Points a, b, and c, Clause 1, Article 1 of Decree 22/2020/ND-CP, in case a business established in 2024 (with new business codes and tax codes) are exempt from license fees in the first year of establishment or production and business.

Therefore, newly established businesses are exempt from license tax in the first year of operation from January 1 to December 31.

Value added tax

• No later than the 20th day of the month following the month in which tax liability arises in case of monthly declaration and payment;
• No later than the last day of the first month of the quarter following the quarter in which tax liability arises in case of quarterly declaration and payment.
• VAT payment deadline: Coincides with the VAT declaration submission deadline.

Corporate income tax

• Deadline for submitting CIT finalization: No later than the last day of the 3rd month (31/3) from the end of the calendar year or fiscal year for annual tax finalization dossiers;
• Corporate income taxpayers: all individuals, organizations, and establishments producing and trading goods and services that generate taxable income;
• The current corporate income tax rate is 20% and applies to businesses that are not eligible for tax incentives and exploit some rare and precious minerals.

Company establishment services of Viet An Law

• Instructions on registration procedures to establish a company in Vietnam;
• Prepare company registration documents and the client’s authorized representative submits the documents and supplements as required by the competent authority;
• Support intellectual property consulting and trademark registration for the company if needed;
• Consulting on post-establishment procedures related to taxes, sublicenses, digital signatures, making company signs,…

Above is the content of advice for clients who wish to establish a company in Vietnam manufacturing ventilation equipment. If you need to establish or need further information, please contact Viet An Law Firm for the earliest support.