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Things enterprises have to do after establishing in Vietnam

When receiving the Enterprise Registration Certificate from Enterprise Registration Agency, some enterprises are in a hurry to operate but some others want to wait for more suitable time to start their business. They may forget to carry out some administrative procedures to comply applicable law. As soon as the Certificate is issued, company’s information has been posted on the system of the National Enterprise Registration Office and managed by the local tax authority. The following article may be helpful for some enterprises to know the specific obligations and avoid being fined after establíhing a company in Vietnam.

Things enterprises have to do after establishing in Vietnam

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    Procedures after company establishment

    What should businesses do after receiving their Enteprise Registration Certification? The procedures to be carried out and the deadlines to comply with, as stipulated in the Law on Enterprises 2020, after obtaining Enteprise Registration Certification are as follows:

    Paying taxes

    Every enterprise is entitled to decide the form, quantity, and contents of its seal. Before using the seal, the enterprise must send the seal design to the business registration authority in order for the business registration authority to post it on the National Business Registration Portal.

    1. Paying license tax:

      • Opening a bank account for a company: conducted by the legal representative of that company. A dossier for bank account application includes:
        • 01 notarized copy of ” Certificate of Business registration “
        • 01 notarized copy of identity card or passport of the legal representative of the enterprise.
        • 01 notarized “Announcement on posting information of enterprise seal”. Bring your business seal when you come to the bank.
      • Register digital signature for electronic tax payment and tax report via the Internet.
      • Register to pay tax online from a bank where the company has registered to open account
      • Carrying out the license tax not later than the last day of the month in which the enterprise starts operating as stated in the Business registration certificate. However, if the certificate does not reflect this information, tax authority will calculate based on the day Business registration certificate was issued.

    2. Registration of initial tax declarition:

        • Dossier should have:
          • 02 form 06/GTGT Applying the method of calculation of VAT (specified in Circular 156/2013 / TT-BTC)
          • 02 form 08 / MST Registration of bank account information
          • 02 notarized copies of Business Registration Certificate
          • 02 copy of ID card Legal representative of the enterprise
          • 02 copies of notification of approval the electronic tax payment service through banks
          • Letter of authorization for other person or organisation who carry out tax declaration procedures (if any).
          • After five working days, the tax office shall return the result of the application of the tax calculation method.

    3. Invoices

          • After receiving the result of the tax calculation method, if the enterprises need, they shall submit an official dispatch to the tax office asking for the use of added value invoices for printing:In case the enterprise wants to order invoice printing – The dossier is made in two sets:
            • 02 copies of invoice printing proposal
            • 02 copies of Business registration certificate
            • 02 copies of the notices of approval of the application of VAT calculation methods by tax offices.
          • After about 5 working days, the enterprise will go to the tax office to receive the notice of approval to order the invoice printing and proceed to contact the printing agency to print the invoice.In cases the enterprises wish to purchase invoices (not printed) from tax offices for use, they shall make dossiers and procedures for invoice purchase at tax offices. Preparation documents (02 sets) include:
            • 02 invoice purchase request
            • 02 written commitment – Form No. CK01 / AC (Circular No. 39/2014 / TT-BTC dated March 31, 2014)
            • Two copies of notices of approval of application of VAT calculation methods by tax offices
            • 02 copies of notices of approval of electronic tax payment via banks
            • 02 vouchers certifying the payment of license tax
            • 02 copies of Business registration certificate
            • 02 copy of ID card of legal representative.
          • At the earliest after 5 working days, the tax office will have to report the result of self-printing or buying invoices for use of the enterprises.

    Notes:

    • Other things that need to be done after the establishment of the business include: hanging company’s banner at its headquarter, labor registration and labor insurance (if any),…
    • Tax obligations must be fulfilled within the prescribed time limit, if they are delayed, enterprises shall be subject to fines from tax offices

    Opening a company bank account

    • This procedure is conducted by the legal representative of the business. The required documents for registering a bank account include:
      • One notarized copy of the Enteprise Registration Certificate.
      • One notarized copy of the National Identification Card of the legal representative as stated on the license.
      • One copy of the company’s charter of company.
    • Currently, businesses are not required to publish their seal sample according to the provisions of the Law on Enterprises 2020. However, many banks may not have updated this information yet, so it is important for customers to take note and discuss this matter to facilitate the account opening process.
    • Businesses need to bring the company seal when completing procedures or authorize Viet An Law Firm to assist in the process.
    • Since 1/5/2021, when Circular 01/2021/TT-BKHDT on enteprise registration came into effect, there is no longer a requirement to submit a bank account declaration file to the Enteprise Registration Office – Department of Planning and Investment. Therefore, it can be understood that, after opening a bank account, businesses are no longer required to declare the bank account number of the newly opened business to the Enteprise Registration Office – Department of Planning and Investment.

    Registering a digital signature for electronic tax filing and online tax reporting

    • Register for electronic tax filing through a bank where the business has opened an account.
    • Currently, customers establishing businesses or companies in Hanoi, it is possible to apply for a bank account number directly in the business/company establishment application file, eliminating the need for separate account opening and bank account notification procedures as per the subsequent instructions. Hanoi is pioneering in supporting businesses and providing conveniences for businesses when conducting business establishment procedures in Hanoi. However, the number of banks that can register online accounts for businesses is still limited, thereby limiting the options for businesses.

    Obtaining and payment of business license fee

    • For each conditional business investment, before official operation business, enterprises need to obtain the seperate business license, which has legal validity independent of Enterprise Registration Certificate.

    For example:

      • In case the Company retails goods or sets up a goods retail establishment: Investors shall issue business licenses when retailing goods and setting up goods in retail establishments.
      • In case the company conducts international travel business (inbound), foreign investors are only allowed to conduct international travel business in the scope of bringing foreign tourists to Vietnam
      • In case the company conducts business training in foreign languages, Investors must obtain the approval of the Department of Education and Training in the process of issuing Investment Registration Certificates. Before going into operation, the enterprise must register a License of operation of a foreign language training center at the Department of Education and Training

     

    • Exemption of business license fee for businesses established in 2023: In response to the complex developments of the COVID-19 pandemic, the Government of Vietnam has implemented a policy of exempting business license fee for newly established companies in their first year of operation since 2020, aiming to encourage businesses to enter the market during this challenging period. According to the provisions of Decree 22/2020/ND-CP, as amending and supplementing by Decree 139/2016/ND-CP, effective from 25/2/2020, newly established companies in 2023 will be exempted from business license fees. However, businesses are still required to declare and submit the business license fee return.
    • Time limit for declaration and payment: Taxpayers commencing production, business activities, or newly established small and medium-sized enterprises transferring from households business must declare the business license fee and submit the tax return to the directly managing Tax Authority before January 30th of the year following the commencement of production, business activities, or establishment.

    Creating signage and displaying company signage at the head office

    Businesses are required to display company signage at their head office, containing the following information: The name of the competent authority (the Department of Planning and Investment, which issues the Enteprise Registration Certificate), the company name, the address of the head office, and the telephone number or email (if available).

    Obtaining an electronic signature for electronic tax filing

    Businesses can seek assistance from Viet An Law Law Firm to obtain a discounted rate for using an electronic signature and receive the best support services.

    To more detail on this topic, please refer to the article: Types of basic taxes that a company required to pay in Vietnam of Viet An Law.

    Requesting the issuance of electronic invoices

    The application file for requesting the issuance of electronic invoices submitted online includes:

    • The decision on issuing invoices and the invoice template.
    • After submitting the application file for invoice printing, the tax authority will evaluate the documents within 2-3 days to determine whether to approve or not. In addition, some Tax Agencies may require submission of the original documents filed online. Tax Authority may conduct an inspection of the head office address before or after approving the invoice issuance. The inspection may be scheduled or not. Therfore, businesses need to have personnel available at the office during the period of submitting the invoice issuance documents.
    • According to the provisions of Article 60 of Decree 123/2020/ND-CP, businesses and economic organizations that have already notified the issuance of printed invoices, self-printed invoices, or electronic invoices without the tax authority’s code, or have registered to use electronic invoices with the tax authority and have purchased invoices from the tax authority before October 19, 2020, can continue to use them until June 30, 2022. Hence, businesses and economic organizations can still use paper invoices until June 30, 2022 if they have been issued before October 19, 2020. However, according to Decision No. 1417/QD-TCT dated September 27, 2021, of the General Department of Taxation regarding the implementation plan for applying electronic invoices in 6 provinces and cities: Hanoi, Ho Chi Minh City, Hai Phong, Quang Ninh, Binh Dinh, and Phu Tho, from November 2021 to March 2022. Therefore, for businesses established in 2023 in the these provinces, it is mandatory to issue electronic invoices.

    Regarding the procedures for registering the use of invoices with or without codes, the following steps are required:

    • Submit the Registration/Change of Information Form for using electronic invoices, using Form 01.
    • Individuals/organizations should access the electronic portal of the General Department of Taxation to register for the use of electronic invoices with the tax authority’s code.

    The necessary documents to be prepared for inspection by the tax authority for the issuance of VAT invoices are as follows:

    • Display company signage at the head office.
    • Lease agreement; the owner’s identification card and household registration book.
    • Certificate of land use rights (notarized copy).
    • Enteprise Registration Certificate.
    • Company seal.
    • Office setup to demonstrate business activities.
    • Staff/Authorized representative, as per the legal requirements, to interact with tax authority.

    Free legal consultation for any legal procedures that may arise during the operation.

    Starting from the initial advisory steps and obtaining the Enteprise Registration Certificate, to tax-related matters and accounting, businesses can make use of the relevant services provided by Viet An Law Firm.

    If you have any questions or concerns about these legal matters or any other issues related to the sequence of procedures and steps required after company establishment, please don’t hesitate to contact Viet An Law Firm at the following phone number: (+84) 9 61 67 55 66 or email: info@luatvietan.vn

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