Setting Up a Musical Instruments Business in Vietnam

The rising quality of life has fueled a significant surge in demand for musical instruments (pianos, guitars, violins, etc.) for both entertainment and educational purposes. Seizing this trend, many entrepreneurs are seeking legal solutions to enter the market. What are the specific requirements and dossiers for establishing a musical instrument trading company? To assist investors in navigating the regulatory landscape, Viet An Law provides a comprehensive and precise guide on setting up a musical instruments business in Vietnam in accordance with current regulations.

Business lines for musical instrument businesses

Charter capital for musical instrument trading companies

• Companies trading in musical instruments do not have capital requirements; the founder of a musical instrument trading company declares and is solely responsible for the company’s charter capital.
• Note that capital is related to the company’s liability and future contract signing. For example, if a company declares capital of 1 billion VND but signs a contract for 2 billion VND, the partner will not sign the contract because they would be solely responsible for the contract amount exceeding the company’s 1 billion VND capital.

Procedures for establishing a musical instrument trading company

Step 1: Prepare the company establishment dossiers

Based on the information provided by our valued clients, Viet An Law will advise on relevant legal issues and draft company formation dossiers, delivering them to our clients within one working day from the date of receiving all necessary client information.

Step 2: Submit the company registration dossiers and pay the enterprise information disclosure fee

After preparing all the necessary dossiers in step 1, Viet An Law proceeds to submit the application for an Enterprise Registration Certificate through the National Electronic Portal for Enterprise Registration.

Step 3: Receive the Enterprise Registration Certificate

After 3 working days, customers will receive their Enterprise Registration Certificate. However, since the certificate is sent by mail, customers may receive it a little later due to the delivery process.

Notes on taxes and invoices for retail businesses from July 1, 2025

From July 1, 2025, newly established enterprises in the retail, food and beverage, hotel, passenger transport, and entertainment sectors will be required to use electronic invoices generated from point-of-sale systems directly connected to the tax authorities (according to Decree 70/2025/ND-CP). This regulation applies to:

• Enterprises with annual revenue of VND 1 billion or more, excluding the agriculture and fisheries sectors;
• Enterprises that pay taxes using the declaration method, regardless of revenue.

The new electronic invoice must include the personal identification number of the legal representative instead of the tax identification number and ensure that it contains complete information about the goods, services, and the tax authority in charge.

Retail enterprises need to take note

Some new regulations on taxes and invoices effective from July 1, 2025

• Register for tax and electronic invoices through the General Department of Taxation’s portal (https://hoadondientu.gdt.gov.vn) before commencing operations, including a business registration certificate, invoice registration form, and personal identification information.
• Equip your enterprise with a management system connected to an automated point-of-sale system, internet access, and use an electronic identification account to conduct tax transactions, replacing the account on the National Public Service Portal.
• Verify the business sector and projected revenue to determine mandatory requirements; if operating a multi-sector business, contact the local tax office for specific guidance.
• Comply with the new VAT regulations:
  • Transactions of 5 million VND or more must have non-cash payment documents to be eligible for VAT deduction.
  • Some items are no longer exempt from VAT (such as fertilizers and agricultural machinery).
  • Enterprises are eligible for VAT refunds when the uncredited input tax is 300 million VND or more after 12 months.
• Store electronic invoices and documents for a minimum of 10 years for verification and comparison purposes.

Updated CIT incentives under Decree 20/2026/ND-CP

The government has just issued Decree 20/2026/ND-CP detailing Resolution 198/2025/QH15 on special mechanisms for the development of the private economy. Below are some highlights regarding corporate income tax incentives that enterprises should note:

• Policy: 100% exemption from CIT for 3 consecutive years.
• Target group: Small and medium-sized enterprises (SMEs) registering for the first time.
• Application period: Starting from the first year of issuance of the business registration certificate.
  • Note: This policy applies immediately from the 2025 tax year (as of Resolution 198).

This offer does NOT apply to the following cases:

• Newly established enterprises resulting from mergers, consolidations, divisions, separations, or changes in type/ownership
• New enterprises where the legal representative/major shareholder has previously been involved in managing another operating enterprise or one that has been dissolved within the last 12 months.

For clients needing assistance with company formation, business registration changes, corporate law consulting, investment law, etc., please contact Viet An Law for the best support!