Issue retail distribution license of foreign capital company in Vietnam

Commercial services are goods exchange activities including services for export, import, wholesale and retail sale of goods. This is one of the basic services of the economy, retail is one of the commercial activities that investors are very interested in, especially foreign investors who want to expand the market to consume products in Vietnam. Foreign investors wishing to do retail business in Vietnam must issue business license before retailing goods. In this article, Viet An Law offers some legal opinions on the dossier of issuance of a retail sale license as follows:

Conditions for issuing business license in Vietnam

Retail is the sale of goods to other individuals, households or organizations for use for consumption purposes. Enterprises conducting retail activities must meet the prescribed conditions and apply for a business license before conducting business activities.

Conditions for issuing a business license are as follows:

• In case foreign investors belonging to countries or territories acceding to treaties to which Vietnam is a contracting party commit to open markets for goods purchase and sale activities and activities directly related to goods purchase and sale, the following conditions must be satisfied:
  • Meet the conditions on market access in international treaties that Vietnam l. à members;
  • Have a financial plan to carry out activities of applying for a business license;
  • No more overdue tax debts in case they have been established in Vietnam for 01 year or more.
• In case a foreign investor does not belong to a country or territory acceding to treaties to which Vietnam is a contracting party, the following conditions must be satisfied:
  • Have a financial plan to carry out activities of applying for a business license;
  • No more overdue tax debts in case they have been established in Vietnam for 01 year or more.
  • In accordance with specialized laws;
  • In accordance with the level of competition of domestic enterprises in the same field of operation;
  • The ability to create jobs for domestic workers;
  • The possibility and extent of contribution to the state budget.

• For commodities it is rice; sugar; recorded items; books, newspapers and magazines: Consider issuing license to exercise retail distribution rights to foreign-invested economic organizations that already have retail establishments in the form of supermarkets, mini-supermarkets and convenience stores for retail at such establishments.

Dossier of application for a business license of a foreign capital company

• Application for a Business License
• The explanation reads:
• Explanation of the conditions for issuance of the corresponding business license as prescribed in the Conditions for issuance of business license section of this article;
• Business plan: Description of contents and methods of conducting business activities; presentation of a business plan and market development; demand for labor; assessment of impacts and socio-economic efficiency of business plans;
• Financial plan: Report on business results on the basis of audited financial statements of the latest year in case it has been established in Vietnam for 01 year or more; explanation of capital, capital sources and capital mobilization plans; enclose documents on finances;
• Business situation of goods purchase and sale activities and activities directly related to goods purchase and sale; financial situation of foreign-invested economic organizations up to the time of application for a business license, in case the enterprise has foreign investors investing in the form of capital contribution, share purchase or purchase of contributed capital
• Documents of the tax authorities proving that there is no longer any overdue tax owed.
• Copy: Certificate of business registration; Certificate of investment registration of the project on goods purchase and sale activities and activities directly related to goods purchase and sale (if any).

Services of Viet An Law Firm related to procedures for issuing license for retail trading in goods

• Advising on conditions for applying for a retail business license
• Advising on the preparation and review of dossiers and conditions related to business license application dossiers;
• Advising on steps to carry out procedures for applying for a retail business license
• Investor representatives shall work with competent state agencies of Vietnam in the process of carrying out license application procedures.