Currently, environmental issues are always of concern to society, in waste is a painful problem that is always sought to be solved. Many waste treatment companies were born to meet that need. However, running a waste treatment business is not a simple thing, individuals and organizations must meet the conditions prescribed by law. So what are the conditions for establishing a waste treatment technology company? To answer customers’ questions, Viet An Law Firm offers the conditions to set up a company in Vietnam providing waste treatment below.
Waste is waste items and tools that will be released into the environment after being used. Based on the nature of each type of waste, it will be classified into many different types. Currently, there are three main types of waste: household waste, hazardous waste (containing toxic substances that can cause fire or explosion or easily react chemically when exposed to other substances), and industrial waste. To help make waste treatment easier and protect workers’ health, classify waste.
A waste treatment company is a unit specializing in collecting, monitoring, treating, and classifying waste to protect the environmental landscape and help the ecosystem become more sustainable.
Vietnamese law allows businesses to operate businesses that are not prohibited by law. However, businesses are obliged to register their business lines when establishing a company. Waste treatment companies need to register for business lines including:
|Collection of non-hazardous waste
|Collection of hazardous waste
|Treat and disposal non-hazardous waste
|Treatment and disposal of hazardous waste
|Remediation activities and other waste management services
Based on Vietnam’s Schedule of Commitments in the WTO, when Vietnam joined the WTO, it committed to open market access for foreign investors for waste treatment services (CPC 9402) in Vietnam. Vietnam’s Schedule of Commitments to the WTO provides no restrictions except that services provided in the exercise of the Government’s powers as provided for in Article I:3(c) may be assigned to public monopolies or granting privileges to private entities. Within 4 years from the date of accession, the foreign ownership ratio in the joint venture must not exceed 51%. Currently, the limit on capital ratio has been abolished.
To ensure public welfare, foreign-invested companies are not allowed to collect trash directly from households. They are only allowed to provide services at waste collection points designated by local provincial governments.
At the same time, the Schedule of Commitments also commits to adding foreign companies that are allowed to do business in Vietnam in the form of Build-Operate-Transfer (BOT) and Build-Transfer-Operate (BTO).
In addition, based on Appendix II of Decree 31/2021/ND-CP, treating and using household waste as fuel in the production of construction materials is an industry eligible for investment incentives. Accordingly, it can be seen that Vietnamese law always creates favorable conditions for waste treatment businesses.
General conditions for establishing a waste treatment business company
Establishing a waste treatment business requires the business to meet several conditions due to its huge impact on the environment and human health.
Organizations and individuals doing business in the field of waste collection and treatment must meet the following requirements:
Conditions for waste treatment business
Waste treatment companies need to ensure the following conditions:
Step 1: Prepare all necessary information to apply for an Enterprise Registration Certificate.
Step 2: Draft and submit company establishment dossiers, including:
Step 3: Submit the application and publication.
Step 4: Make a legal entity seal.
Step 5: Procedures after establishing the company.
Step 1: Apply for an investment certificate for business investment projects in Vietnam (submit and request permission from relevant ministries).
Step 2: Carry out procedures to apply for an Enterprise Registration Certificate. The dossier includes the following documents:
Step 3: Receive results and complete investor tax procedures.
Company establishment fees and charges include:
In addition, the company also needs to prepare costs for several things such as purchasing invoices, completing procedures for issuing financial invoices, purchasing digital signatures, etc.
Clients wishing to set up a company in Vietnam providing waste treatment, please contact Viet An Law Firm for the best support!
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