The increasing demand for beauty leads to the current market appearing a lot of beauty products, skin care and profits from the cosmetics business become more and more. Grasping that trend, many individuals or organizations are eager to establish cosmetic trading companies. So, what are the conditions for establishing a cosmetics company? To answer customers’ questions, Viet An Law Firm offers an article on conditions for establishing a cosmetic company.
A cosmetics company is a type of enterprise specializing in manufacturing, selling and distributing care and beauty products such as cosmetics, skin care and other related products.
According to the provisions of the Investment Law 2020, to be able to set up a cosmetics company in Vietnam, foreign investors will have to have an investment project and be granted an investment registration certificate in Vietnam.
Investment conditions for foreign investors are conditions that foreign investors, when carrying out investment activities, are required to satisfy the conditions for investment in conditional investment lines as prescribed in international treaties on investment, relevant laws, ordinances and decrees. Accordingly, the import and distribution of products is an investment field that Vietnam has committed to open when joining the WTO. Therefore, in case investors from countries and territories join the WTO, they will be allowed to trade cosmetics in Vietnam.
In addition, in the case of only trading cosmetics (not manufacturing) but only importing them for resale, this is not a conditional business line. Therefore, it is only necessary to meet the conditions for setting up a business to be able to trade cosmetics in Vietnam. In the case of cosmetic production, this is a conditional business. Accordingly, both foreign and domestic investors will have to fully meet the following conditions:
Depending on the type of enterprise, when it is necessary to choose the type of business to suit the number of members, capital contributors as well as the ratio of business target capital of their company.
Currently, the enterprise law stipulates that there are popular types of enterprises as follows:
For the name of the cosmetics trading company can also be Vietnamese or foreign language. If the name is in a foreign language, the name must be printed or written in a smaller font size than the Vietnamese name at the company’s business locations. The name must not be identical or confusing with other companies that have been registered nationwide and must ensure at least two elements in the name: Type of business and proper name.
Based on the law on enterprises, cosmetics business is not in the prescribed cases where the minimum and maximum capital of the company is required. Therefore, cosmetic companies can freely choose the charter capital to set up this type of company.
Therefore, the selection of charter capital to register should be appropriate and corresponding to the actual conditions of the company to be more favorable in doing business, in order to create the most optimal profit from the capital that they spend.
In addition to the general conditions for business establishment, if you want to set up a cosmetics company, you also need to meet the following additional conditions:
Accordingly, in order to be granted a certificate of eligibility, a cosmetic manufacturer must meet the following conditions:
Conditions of facilities:
When preparing and completing the application submission at the Business Registration Office, timeline to set up a cosmetic company will normally be from 03-05 working days from the date of receipt of a complete and valid dossier, you will receive the business registration certificate. However, in reality, it can take about 01-2 weeks depending on whether your application is valid or not. Therefore, for convenience as well as speed in setting up a cosmetics company, you can use the company establishment service at Viet An Law.
According to the provisions of Circular 47/2019/TT-BTC stipulating that when registering the establishment of a cosmetic company, you will have to pay some types of fees as follows:
In addition, when setting up a cosmetics trading and manufacturing company, you will have to pay additional fees as follows:
In this case, the company needs to carry out procedures for applying for a Business License and a Retail Establishment License. In addition, if the company directly imports cosmetics, it is necessary to carry out procedures for announcing the circulation of imported cosmetics.
If you want to find out more information about the conditions for opening a cosmetic company, announcing the circulation of imported cosmetics, please contact Viet An Law Firm for the best support!
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