(+84) 9 61 57 18 18
info@vietanlaw.vn

The criteria to identify a micro-enterprise in Vietnam

According to Law on provision of assistance for small and medium-sized enterprises 2017, taking effect on 01/01/2018 and Decree No.39/2018 on detail regulations of to Law on provision of assistance for small and medium-sized enterprises 2017, taking effect on 11/03/2018, the criteria used for identifying micro-enterprise base on the total number of employees participating in social insurance; the total capital or the total revenue of the previous year of the enterprise. Besides, as for each enterprise exercising in each certain business field shall exist exclusive requirements. In detail:

  1. In agriculture, forestry, aquaculture; industry and construction

Pursuant to regulations, micro-enterprise conducting these above business field has to satisfy:

  • The total annual average number of employees participating in social insurance: not exceed 10 people;
  • The total capital: not higher than 03 billion VND;
  • The total revenue of the previous year: not greater than 03 billion VND.
  1. In trade and services:

The core feature of trade and services that does not have high demand in employees, but is capable of making more profit than other fields. Consequently, there is slight difference in identifying micro-enterprise in these two fields:

  • The total annual average number of employees participating in social insurance: not exceed 10 people;
  • The total capital: not higher than 03 billion VND;
  • The total revenue of the previous year: not greater than 10 billion VND.

However, Vietnam has been developing a project that could assist the micro, small and medium enterprises having potential development in one or more fields, regions in one or more stages. Classifying accurately of the size of enterprise plays essential role, because for each sort of enterprise, Vietnamese Government shall offer different assistance and priority relating to tax, administrative procedure,… with the aim of helping promote the enterprise.

Notice:

  • The annual average total number of employees: is calculated by the total number of employees participating in social insurance divides to 12 months (if enterprise is established under 01 year, that number would be divided to operating months).
  • The total capital: is recognized by Balance sheet on Financial Report of the previous year submitted to Tax department (if enterprise is established under 01 year, the capital shall be found in Balance sheet at the previous quarter close to the time that enterprise registers for assistance).
  • The total revenue: is recognized by Financial Report of the previous year submitted to Tax department (if enterprise is established under 01 year or more than 01 year without initiating revenue, the revenue shall supplant by the total revenue in Balance sheet at the previous quarter close to the time that enterprise registers for assistance).
  • The operating field: is identified by Vietnameseindustrial classification system. In case that enterprise has various business lines, the line which has highest revenue shall be chosen.

Related Acticle

Circular 06/2024/TT-BKHDT guiding bidding on the National Bidding Network System

Circular 06/2024/TT-BKHDT guiding bidding on the National Bidding Network System

On April 26, 2024, the Ministry of Planning and Investment issued Circular 06/2024/TT-BKHDT to replace Circular 01/2024/TT-BKHDT to guiding the new regime in Bidding Law 2023 and Decree 23/2024/ND-CP on…
Decree 103/2024/ND-CP regulating land use fees and land rents

Decree 103/2024/ND-CP regulating land use fees and land rents

One of the financial obligations of land users is the obligation to pay land use fees and land rent. Recently, the Government has issued new regulations on land use fees…
Decree 71/2024/ND-CP on new land prices regime in 2024

Decree 71/2024/ND-CP on new land prices regime in 2024

Recently, the Government has issued Decree No. 71/2024/ND-CP, introducing new regulations on new land prices regime in 2024 in accordance with the Land Law 2024. Decree 71/2024/ND-CP on new land…
Decree 115/2024 on selecting investors to implement projects using land in Vietnam

Decree 115/2024 on selecting investors to implement projects using land in Vietnam

Implementing the Law on Bidding 2023, up to now, the Government has issued a total of 03 Decrees guiding the Law on Bidding 2023: Decree 23/2024/ND-CP, Decree 24/2024/ND-CP, Decree 115/2024/ND-CP.…
Authority to revoke the Certificate of Food Safety under Circular 31/2023/TT-BYT

Authority to revoke the Certificate of Food Safety under Circular 31/2023/TT-BYT

On December 30, 2023, the Minister of Health issued Circular 31/2023/TT-BYT, which stipulates the authority to revoke the Certificate of Food Safety. Revocation will be carried out when an establishment…

CONTACT VIET AN LAW

Hanoi Head-office

#3rd Floor, 125 Hoang Ngan, Hoang Ngan Plaza, Trung Hoa, Cau Giay, Hanoi, Vietnam

info@vietanlaw.vn

Ho Chi Minh city office

Room 04.68 vs 04.70, 4th Floor, River Gate Residence, 151 – 155 Ben Van Don Street, District 4, HCM, Viet Nam

info@vietanlaw.vn

SPEAK TO OUR LAWYER

English speaking: (+84) 9 61 57 18 18 - Lawyer Dong Van Thuc ( Alex) (Zalo, Viber, Whatsapp)

Vietnamese speaking: (+84) 9 61 37 18 18 - Dr. Lawyer Do Thi Thu Ha (Zalo, Viber, Whatsapp)