After establishing a company, investors still have some actions to execute to put it into operation.
Checking enterprise registration information
The information on the Enterprise Registration Certificate and the National Enterprise Registration Information Portal might have shortcomings, lack of information, or mistakes in comparison with the information registered by investors.
In case of any incorrect information, investors can request for amendment immediately after receiving the Certificate or send a Request for Amendment to the Enterprise Registration Office where their head office is based.
Article 13, Article 17 Circular 20/2015/TT-BKHDT
Preparing the Members’ Register and Shareholders’ Register
Members’ Register and Shareholders’ Register are lawful documents recording the contributed capital value of each shareholder.
A limited liability company with two members or more shall prepare a Members’ Register.
A joint stock company shall prepare a Shareholders’ Register.
Article 49, Article 121 2014 Law on Enterprises
Opening Bank Accounts
Transactions of value over 20 million Vietnamese Dong shall be paid via bank accounts of companies in order for the VAT deduction to be applied and to be recorded in the deducted expenses upon CIT calculation;
Except for the followings: purchase invoices of agricultural, forest, and maritime products from direct makers or catchers; purchase of handicraft products; expenses contributed to national defense or security, etc.
Companies can contact Vietnamese banks or international banks in Vietnam to open accounts.
Within 10 days from the opening day of the account, the company is obliged to inform its account to the Department of Planning – Investment where its head office is located.
Notice of Bank Account Form to be submitted with Change of Enterprise Registration Information Form.
II-1 Form, Circular 20/2015/TT-BKHDT.
License Tax Declaration and Payment
Organizations which are newly established but have not yet operated shall declare and pay a license fee within 30 days from the date the license is granted.
Upon commencing initial business operations, organizations should declare and pay the license fee no later than the last day of the month in which their production and business commence.
Payable license tax rate is based on the charter capital or investment capital:
Charter Capital/ Investment Capital | Annual License Tax |
~435 million US dollars | 130 US dollars |
Less than ~435 million US dollars | 87 US dollars |
If an Enterprise Registration Certificate is issued in the period from January to the end of June, license tax shall be paid for the entire year.
If an Enterprise Registration Certificate is issued in the period from July to the end of December, license tax shall only be paid for half a year.
Article 5, Circular 302/2016/TT-BTC
Using Value-Added Invoice (VAT)
Invoice Usage
Companies may use self-printed invoices or order the printing from other entity or use electronic invoices.
Clauses 1 & 2 Article 5 Decree 51/2010/ND-CP
Notice of Invoice Usage
Companies shall inform the invoice issuance and sample invoice to their direct tax regulatory agency no later than 2 days before commencing the invoice usage.
In case there are any changes regarding the content of issuance notice, business organizations and individuals need to carry out procedures for new notice of issuance.
Article 1 Circular 37/2017/TT-BTC
Hanging Signboard
Company’s signboard shall be written and placed close to the gate of the façade of its head office or business location.
Companies can show abbreviated name, international transaction name and foreign name on the signboard with full name in Vietnamese but it shall be put below and the size is smaller than that in Vietnamese.
Logo shall not occupy more than 20% of the signboard area and shall not show information and advertising images for any kind of goods and services.
In addition, companies shall note that signboard shall be made with content, form and size in accordance with the provision.
Hanging signboard is a compulsory obligation. A fine of ~435 – ~652 US dollars shall be imposed to companies violating this provision.
Article 38 2014 Law on Enterprises
Articles 22 & 23 Decree 103/2009/ND-CP
Labor Declaration and Registration
Report on Labor Use
A company shall perform the report on labor use to the Division of Labor –Invalids and Social Affairs where its head office is located within 30 days from the commencement date of its operation.
If a company has its head office in the industrial zone, it shall perform the declaration and submission within the aforesaid period at the Department of Labor – Invalids and Social Affairs.
Companies shall prepare labor management book in their head office.
Clause 1, Article 7 Circular 23/2014/TT-BLDTBXH
Article 8, Article 9 Decree 03/2014/ND-CP
Social Insurance Registration and Payment
Companies have responsibility to take part in contributing compulsory social insurance, health insurance and unemployment insurance for employees upon signing labor contracts.
Companies shall prepare dossiers so that employees are granted social insurance books, paid and entitled to social insurance.
Insurances payment rate:
Total Rate | Company | Employee |
32% | 21.5% | 10.5% |
Article 4, Article 13, Article 17 Decision 595/QD-BHXH in 2017
Article 5, Article 14, Article 18 Decision 595/QD-BHXH in 2017
Foreign Laborer Usage
Companies shall only recruit employees being foreign citizens for the positions of managers, managing directors, experts and technical employees of which Vietnamese employees have not yet satisfied the requirements based on the demand of production and business.
Upon having demand of foreign employee usage, companies shall conduct procedures to apply for work permit.
Some cases are exempted from work permit:
- intercompany transfer;
- employees entering into Vietnam to advice on professional and technical matters;
- employees granted license by the Ministry of Foreign Affairs…
Clause 1 Article 169 2012 Labor Code
Clause 1 Article 170 2012 Labor Code
Preparation of Internal Labor Regulations
If a company use 10 employees or more, an Internal Labor Regulations shall be registered at the Department of Labor – Invalids and Social Affairs.
Please note that the companies must consult the Union about the Internal Labor Regulations before it is registered at the Department of Labor – Invalids and Social Affairs.
In case a company does not establish the Union, that company shall consult a direct higher level Union.
Article 119 2012 Labor Code
Clients who Start a business in Vietnam shall be supported by M&A Vietnam for all legal works from pre-establishment until putting it into operation.
