What are the principles of assistance for small and medium enterprises in Vietnam? What is assistance for enterprises converted from household businesses in Vietnam?
What are the principles of assistance for small and medium enterprises in Vietnam?
Pursuant to the provisions of Article 4 of Decree No. 80/2021/ND-CP on the principles of assistance for small and medium enterprises (SMEs) as follows:
Principles
1. On the basis of available resources and order of priority in each period, assisting organizations shall decide the quantity of SMEs eligible for assistance following these principles:
a) First come, first served;
b) Women-owned SMEs, SMEs with high female employments and SMEs that are social enterprises shall be given priority as prescribed by law.
2. In case an SME satisfies conditions for different levels of assistance specified in this Decree and relevant regulations of law, it may choose the most favorable assistance.
3. In addition to assistance provided separately for micro-enterprises and SMEs specified in this Decree, general assistance for SMEs shall also be provided for micro-enterprises and SMEs that satisfy the conditions specified in this Decree.
4. SMEs that are converted from household businesses, startups, SMEs participating in industry clusters, value chains shall be eligible for the assistance specified in Chapter IV and Chapter III of this Decree if they are not repeated.
5. On the basis of their functions, duties and capacity, assisting organizations shall directly provide assistance or cooperate with capable organizations and individuals in providing assistance for eligible SMEs.
Thus, the principle of supporting small and medium-sized enterprises is mainly the order of application and preference for women-owned enterprises, enterprises with many female employees and social enterprises.
What are the principles of assistance for small and medium enterprises in Vietnam? What is assistance for enterprises converted from household businesses in Vietnam? (Image from the Internet)
Are household businesses allowed to convert into small and medium enterprises?
A household business that can convert its business type into a small and medium-sized enterprise under Article 27 of Decree No. 01/2021/ND-CP needs to prepare the following documents:
- The original certificate of household business registration;
- The copy of the tax registration certificate;
- In case of conversion from household business into sole proprietorship, you need to prepare the application form for enterprise registration and the copies of legal documents of the sole proprietor.
- In case of conversion from household business into partnership, you need to prepare the application form for enterprise registration; the company’s charter; list of general partners; copies of the following documents: Legal documents of general partners that are individuals; Legal documents of general partners that are organizations; Legal documents of authorized representatives and letters of appointment of authorized representatives (If a general partner is a foreign organization, copies of legal documents of that organization must be legalized); Investment registration certificate if the enterprise is founded or co-founded by foreign investors or foreign-invested business entities in accordance with the Law on Investment and its guiding documents.
- In case of conversion from household business into joint stock company, you need to prepare the application form for enterprise registration; the company’s charter; list of members of the multi-member limited liability company; lists of founding shareholders and shareholders that are foreign investors of the joint-stock company; copies of the following documents: Legal documents of the enterprise’s legal representative; Legal documents of members or founding shareholders and foreign shareholders that are individuals; legal documents of members or founding shareholders and foreign shareholders that are organizations; legal documents of authorized representatives of members or founding shareholders and foreign shareholders that are organizations and their letters of appointment of authorized representatives (If a member or shareholder is a foreign organization, copies of legal documents of that organization must be legalized); Investment registration certificate if the enterprise is founded or co-founded by foreign investors or foreign-invested business entities in accordance with the Law on Investment and its guiding documents.
- In case of conversion from household business into limited liability company, you need to prepare the application form for enterprise registration; the company’s charter; copies of the following documents: Legal documents of the enterprise’s legal representative; Legal documents of the company’s owner that is an individual; Legal documents of the company’s owner that is an organization (except for the State); Legal documents of the authorized representative and letter of appointment of authorized representative (If the company’s owner is a foreign organization, copies of legal documents of that organization must be legalized); Investment registration certificate if the enterprise is founded by a foreign investor or foreign-invested business entity in accordance with the Law on Investment and its guiding documents.
What is assistance for enterprises converted from household businesses in Vietnam?
According to the provisions of Article 15, Article 16, Article 17, Article 18, Article 19 of Decree No. 80/2021/ND-CP, household businesses converting to enterprises will receive the following assistance:
- The People’s Committees of provinces shall assign their Departments of Planning and Investment to provide counseling and instructions for household businesses to convert into enterprises free of charge regarding documentation and procedures for enterprise registration;
- Enterprises that are converted from household businesses will be exempted from paying the fee for enterprise registration for the first time at the business registration authority, the fee for publishing of the enterprise’s in for the first time on National Enterprise Registration Portal.
- Assistance in completion of procedures for registration of conditional business lines
- Enterprises converted from household businesses will be exempted from licensing fees for 03 years from the issuance of the first Certificate of Enterprise Registration.
- The People’s Committees of provinces shall request their Departments of Finance to counsel and instruct SMEs to complete tax procedures and accounting for 03 years from the issuance of the first Certificate of Enterprise Registration.
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