Set up a company in Vietnam providing waste treatment

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.

Legal basis

• Vietnam’s Commitment Schedule in the WTO.
• Law on Environmental Protection 2020.
• Law on Investment 2020;
• Decree No. 31/2021/ND-CP details and guides the implementation of a number of articles of the Investment Law.
• Decree 08/2022/ND-CP details a number of articles of the Law on Environmental Protection.
• Circular No. 47/2019/TT-BTC stipulating the rates, collection, payment, management and use of fees for providing business information and business registration fees

What is a waste treatment business?

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.

Business lines of waste treatment company in Vietnam

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:

Market access conditions for waste treatment business in Vietnam

Vietnam’s commitments when joining the WTO

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.

Set up a company in Vietnam providing waste treatment

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:

• Comply with environmental protection principles specified in Article 4 of the Law on Environmental Protection 2020;
• Meets specific conditions for each type: domestic solid waste, regular industrial solid waste, and hazardous waste specified in Chapter VI of the Law on Environmental Protection 2020;
• Provide information for each type of waste about generated volume, collection, treatment, recycling, reuse, and information on technology, treatment works, and monitoring results.

Conditions for waste treatment business

Waste treatment companies need to ensure the following conditions:

• Comply with environmental protection principles specified in Article 4 of the Law on Environmental Protection 2020;
• Meets specific conditions for each type: domestic solid waste, regular industrial solid waste, and hazardous waste specified in Chapter VI of the Law on Environmental Protection 2020;
• Provide information for each type of waste about generated volume, collection, treatment, recycling, reuse, and information on technology, treatment works, and monitoring results.

Procedures for establishing a waste treatment company in Vietnam

For companies with 100% Vietnamese capital

Step 1: Prepare all necessary information to apply for an Enterprise Registration Certificate.

Step 2: Draft and submit company establishment dossiers, including:

• Application for issuance of a Certificate of eligibility to treat waste and toxic waste.
• Charter of waste treatment company.
• List of shareholders or members of the company.
• 01 copy of the environmental impact assessment report. Report approved by the Ministry of Natural Resources and Environment on the waste treatment facility investment project or alternative documents and records specified in Appendix 5 issued with the Circular.
• The specific content of the plan, management, and handling methods must be approved by the management agency.
• Documents proving personal status: ID card, household passport, identification card for individuals.
• Documents proving legal status: Business registration license, establishment decision, authorization letter… for organizations.
• Other relevant documents (if any).

Step 3: Submit the application and publication.

Step 4: Make a legal entity seal.

Step 5: Procedures after establishing the company.

For companies with foreign capital

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:

• Application for business registration;
• Company rules process rubbish;
• List of members/shareholders;
• Copies of the following documents: Citizen identification card, ID card, passport, or other legal personal identification of individual members;
• Establishment decision, Enterprise Registration Certificate or other equivalent documents of the organization and authorization documents; Citizen identification card, ID card, passport, or other legal personal identification of the authorized representative of the organizational member;
• For members that are foreign organizations, a copy of the Enterprise Registration Certificate or equivalent document must be consular legalized;
• Investment Registration Certificate for foreign investors according to the provisions of the Investment Law.

Step 3: Receive results and complete investor tax procedures.

Fees for setting up a waste treatment business company in Vietnam

Company establishment fees and charges include:

• Business registration fee: 50,000 VND/time. In the case of online registration, businesses are exempt from this fee.
• Fee for publishing business registration information: 100,000 VND/time for documents submitted directly to the Business Registration Office or online business registration documents at the time of submission (in Circular No. 47/2019/TT-BTC).

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!