A license for retail distribution of goods is a license issued by the Industry and Trade Agency to a foreign-invested company in Vietnam that operates the retail distribution of goods in Vietnam. Therefore, only foreign-invested companies that meet the conditions for carrying out the retail distribution of goods can be granted this license.
- WTO commitments and international investment treaties to which Vietnam is a signatory to or joins;
- Investment Law 2020;
- Decree 09/2018/ND-CPdetailing the trade law and the law on foreign trade management on the purchase and sale of goods and activities directly related to the purchase and sale of goods by foreign investors and foreign-invested economic organizations in Vietnam.
Special groups of goods when applying for a license for retail distribution of goods
Group 1: For goods not on the list of goods banned from export, import, and list of goods not distributed by Vietnamese law or not subject to restrictions under international commitments to which Vietnam is a member.
Group 2: For goods that are oil, lubricating grease;
Group 3: For goods that are rice; sugar; recorded items; books, newspapers, and magazines;
Procedures for applying for business licenses to implement retail distribution regulations
Application for a business license
- Application for a business license
- Explain the conditions for granting corresponding business licenses as prescribed.
- Business plan: Describes the contents and methods of conducting business activities; presenting business plans and market development; labor needs; assessing the socio-economic impact and effectiveness of the business plan;
- Financial plan: Report on business results based on audited financial statements of the most effective year in case it has been established in Vietnam for 01 years or more; explanation of capital, capital sources, and capital mobilization plans; enclosed with financial documents;
- of goods trading and activities directly related to the purchase and sale of goods.
- Tax office documents prove that there is no overdue tax debt.
- Copy: Certificate of business registration; Certificate of investment registration for the sale and sale of goods and activities directly related to the purchase and sale of goods (if any).
Procedures for applying for a license for retail distribution of goods of foreign-invested companies in Vietnam
The application is sent in person or by post or by the online network (if eligible for application) to the Licensing Authority.
- The number of applications:
- In case of issuance of business license to perform retail distribution of goods in Group 1: 01 set;
- In case of issuance of business license to perform retail distribution of goods in Group 2: 02 sets;
- In case of issuance of business license to perform retail distribution of goods in Group 3:03 sets.
- Within 28 working days from the date of receipt of the valid dossier, the licensing agency shall check the validity and send the dossier enclosed with the written opinion of the Ministry of Industry and Trade and the ministry of industry management for comments on the contents of the issuance of business licenses as prescribed.
Some questions related to foreign investors applying for a license to sell retail goods in Vietnam
What additional conditions do companies exercise the right to distribute retail at retail establishments?
With a business license to carry out retail distribution, the company is conducted online retailing on company websites and e-commerce platforms. However, to retail at the retail establishment, the company must apply for a business license and establish a retail establishment.
Does the maximum ownership rate of foreign investors in the company carry out retail distribution?
Restrictions on capital contribution ratios are placed on certain conditional occupations that investors plan to register. However, the retail industry does not require the ratio of capital contributed by investors. As such, investors can register a maximum capital ratio of 100%.
Consulting services for foreign investors applying for a license to retail goods of foreign-invested companies in Vietnam of Viet An Law Firm
- Advising on conditions and guiding investors to prepare necessary documents to carry out procedures for applying for business licenses;
- Representatives of investors and economic organizations to submit and process dossiers, arising with relevant agencies during the process of applying for business licenses;
- Supporting to advise and guide passengers on activities arising during the implementation of investment and business in Vietnam.
Foreign investors wishing to set up a company, apply for a license to retail goods please contact Viet An Law Firm for the fastest support.