What is a single-member limited liability company in Vietnam? Does a single-member limited liability company have to pay licensing fee in Vietnam?

What is a single-member limited liability company in Vietnam?

Pursuant to Clause 1, Article 74 of the Law on Enterprises 2020, the regulations are as follows:

Single-member limited liability company

1. A single-member limited liability company is an enterprise owned by an organization or an individual (hereinafter referred to as the company owner). The company owner is liable for the company's debts and other property obligations within the amount of the company's charter capital.

2. A single-member limited liability company has legal status from the date it is issued the Certificate of Business Registration.

3. A single-member limited liability company is not allowed to issue shares, except in the case of conversion to a joint-stock company.

4. A single-member limited liability company is allowed to issue bonds in accordance with this Law and other relevant legal regulations; the issuance of private bonds is in accordance with Articles 128 and 129 of this Law.

Therefore, based on the regulation, a single-member limited liability company is an enterprise owned by an organization or an individual (hereinafter referred to as the company owner). The company owner is liable for the company's debts and other property obligations within the amount of the company's charter capital.

What is a single-member limited liability company in Vietnam? Does a single-member limited liability company have to pay licensing fee in Vietnam? (Image from the Internet)

Does a single-member limited liability company have to pay licensing fee in Vietnam?

Pursuant to Article 2 of Decree 139/2016/ND-CP, the regulations are as follows:

Taxpayers of licensing fee

Taxpayers of licensing fee are organizations and individuals engaged in the production and trading of goods and services, except for the cases regulated in Article 3 of this Decree, including:

1. Enterprises established in accordance with the law.

2. Organizations established under the Law on Cooperatives.

3. Public service units established in accordance with the law.

4. Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, and armed forces units.

5. Other organizations engaged in production and business activities.

6. Branches, representative offices, and business locations of the organizations mentioned in clauses 1, 2, 3, 4, and 5 of this Article (if any).

7. Individuals, groups of individuals, households engaged in production and business activities.

Therefore, according to the above regulations, a single-member limited liability company is an enterprise established in accordance with the law and is subject to licensing fee.

What is the deadline for paying the licensing fee in Vietnam in 2025?

Pursuant to Clause 9, Article 18 of Decree 126/2020/ND-CP, the deadline for paying the licensing fee in 2025 is as follows:

Deadline for paying taxes on revenues belonging to the state budget from land, water resource exploitation rights fees, mineral resource fees, sea area usage fees, registration fees, licensing fee

...

9. licensing fee:

a) The deadline for paying licensing fee is no later than January 30 each year.

b) For small and medium enterprises converted from household businesses (including dependent units and business locations of the enterprise), at the end of the licensing fee exemption period (the fourth year from the year of enterprise establishment), the deadline for paying licensing fee is as follows:

b.1) If the exemption period ends in the first 6 months of the year, the deadline is no later than July 30 of the year the exemption period ends.

b.2) If the exemption period ends in the last 6 months of the year, the deadline is no later than January 30 of the following year, the exemption period ends.

c) For household businesses and individuals who have ceased production and business activities and then resume operations, the deadline is as follows:

c.1) If resuming in the first 6 months of the year: No later than July 30 of the year of resuming.

c.2) If resuming in the last 6 months of the year: No later than January 30 of the following year of resuming.

Thus, the deadline for paying the licensing fee in 2025 is January 30, 2025.

However, since the tax payment deadline this year, January 30, 2025, falls on Lunar New Year day (February 1), the latest time for paying licensing fee is February 3, 2025 (Monday).

Note: For cases of small and medium enterprises converted from household businesses at the end of the licensing fee exemption period and household businesses, individuals who have ceased and resumed production and business activities, the deadline for paying licensing fee in 2025 is implemented according to points b and c, Clause 9, Article 18 of Decree 126/2020/ND-CP.