Set up an editing business in Vietnam

Editing companies are growing in Vietnam along with the growth of the marketing and film industry. With nearly 20 years of experience, Viet An Law Firm is proud to be a prestigious and leading law firm in the field of corporate law consultancy, especially business establishment support. In the following article, Viet An Law will present legal issues related to set up an editing business in Vietnam with current laws.

Business conditions to set up an editing business in Vietnam

Currently, most industries related to film no longer have conditional investment industries. Law on Cinematography 2022 has adjusted the conditional industry under the Law on Investment 2020 to only “Film dissemination services“. However, domestically, the capital regulations of this profession are still valid according to the law on cinematography.

Capital conditions

• According to  Regulation 54/2010/ND-CP (amended by  Regulation 142/2018/ND-CP), the legal capital of the industry being film distribution and dissemination service business will be VND 200,000,000 (down 80% compared to the previous regulation of VND 1 billion).
• In addition, enterprises need to pay annual license fees according to the registered capital. Accordingly, if the capital is 10 billion VND or less, the license fee is 2,000,000 VND / year, and over 10 billion, the license fee is 3,000,000 VND / year. In particular, in the first year of establishment, enterprises are exempt from license fees.

Market access conditions

Regulations in international treaties on investment include the schedule of specific commitments on trade in services of Vietnam in the WTO, ASEAN Comprehensive Investment Agreement (ACIA), ASEAN Framework Agreement on Services – AFAS (10th Package), Vietnam – Japan Economic Partnership Agreement (VJEPA), other agreements to which Vietnam is a member have stipulated conditional market access industries for foreign investors. In addition, there is the production and distribution of cultural products, including video recordings. As follows:

WTO, VKFTA, VJEPA, AFAS, RCEP, AIFTA, AJCEP, ACFTA, AKFTA, VN-EAEU FTA, AHKFTA

• For film production services (CPC 96112, except video tapes): All films must be censored for content by competent Vietnamese agencies.
• Foreign investors only invest in the form of business cooperation contracts or joint ventures with Vietnamese partners who are allowed to provide these services in Vietnam.
• Proportion of capital contributed by the foreign side: not exceeding 51% of the legal capital of the joint venture.

CPTPP (CPCI – VN – 9): For the film production industry (CPC 96112)

• Forms of service provision: similar to the WTO, in addition to 2 forms of BCC contract or joint venture, foreign investors can also buy shares of Vietnamese enterprises licensed to provide these services.
• The percentage of contributed capital must not exceed 51%.

Some notes on film production activities of foreign enterprises in Vietnam

• According to the provisions of the Law on Cinematography 2022, foreign organizations and individuals producing films in Vietnam must use film production services provided by Vietnamese cinematographic establishments based on written service agreements/contracts in compliance with contents prescribed by Vietnamese law. In the case of using filming services using the context in Vietnam, a license for providing filming services using the context in Vietnam must be granted by the Ministry of Culture, Sports and Tourism according to the prescribed procedures.
• Foreign cinema establishments can establish a foreign cinema representative office in Vietnam according to the Representative Office establishment license issued when they meet the conditions under Article 43 of the Law on Cinematography 2022.

Business line code

• In fact, when establishing a film editing company, the enterprise will not only do 1 business as film production but will register more related industries. Therefore, when registering a business, enterprises should carefully consider whether that industry belongs to the conditional business lines or not.
• Below, Viet An Law will provide readers with some professions that when establishing a editing company can register:

4773: Other retail sale of new goods in specialized stores

Specifically: Retailing of pictures and other works of art (except antiques) in specialized stores; Retail of cameras, film and photographic materials in specialized stores.

4785: Retail sale of cultural and recreation goods via stalls or markets

5911: Motion picture, video and television programme production activities

5912: Post-production activities

5913: Motion picture, video and television programme distribution activities

5914: Motion picture projection activities

5920: Sound recording and music publishing activities

7310: Advertisement

Specifically: Advertisements for movies and music

7722: Renting of video tapes and disks

8552: Cultural education

Legal basis to set up an editing business in Vietnam

• Law on Enterprise 2020.
• Law on Cinematography
• Decree 01/2021/ND-CP on business registration.
• Regulation 54/2010/ND-CP detailing the implementation of several articles of the Law on Cinematography, as amended and supplemented by Regulation 142/2018/ND-CP.

Establishment of company procedure in Vietnam

Step 1: Prepare your application

Prepare dossiers including application for business registration, company charter, list of shareholders/capital contributors (if any), Legal documents of individuals or organizations, power of attorney for Viet An law.

Note: When authorizing Viet An Law, we will advise the necessary documents in the dossier as quickly and accurately as possible to establish a editing company. You only need to provide the relevant documents, Viet An Law will help you with the remaining registration procedures.

Step 2: Apply establishment dossier

The founder of an enterprise or enterprise or an authorized person shall carry out business registration procedures by the following methods:

• Business registration directly at the Business Registration Office of the Planning and Investment Department.
• Business registration via postal service
• Business registration via electronic information at the National Business Registration Portal (https://dangkykinhdoanh.gov.vn)

Step 3: Get the result

Within 03 working days from the date of receipt of the dossier, the business registration agency is responsible for considering the validity of the enterprise registration dossier and granting business registration; in case the application is not valid, the business registration agency must notify in writing the contents that need to be amended and supplemented to the enterprise founder. In case of refusal to register an enterprise, it must notify in writing the enterprise founder by clearly stating the reason.

Note: Receive receipts of state fees for electronic fee payment records as follows:

• For dossiers with payment of fees for publishing business registration contents electronically, after the dossier is approved, the enterprise will receive an email issuing an electronic receipt (sent to the email address entered at the e-payment step).
• In case the online registration application is not approved, the user will be refunded the fee for publishing the submitted enterprise registration contents according to regulations

Some editing companies in Vietnam

Company establishment service of Viet An Law

• Business establishment consultancy;
• Drafting and representing customers to submit documents for establishing a film editing company;
• Services of applying for an Investment Registration Certificate for foreign investors;
• Services to register and protect intellectual property rights for businesses for trademarks, inventions, copyrights, and industrial designs;
• Consulting, tax accounting services for enterprises;
• Services after company establishment such as making signs, company seal, registering invoices, opening a business account, registering a direct investment account;
• Regular consulting package for businesses.

If you want to register set up an editing business in Vietnam or use other consulting services, please contact Viet An Law for the most effective, fast and detailed advice.