Vietnam: In 2023, is it required to apply for permission from state agencies when opening gold jewelry and fine art shops for business? What are the notable procedures for opening gold jewelry and fine art shops?
- What are the conditions for opening gold jewelry and fine art shops for business in Vietnam?
- What are the notable contents when opening gold jewelry and fine art shops for business in Vietnam?
- What are the procedures for opening gold jewelry and fine art shops in Vietnam? What are the required documents for opening gold jewelry and fine art shops?
What are the conditions for opening gold jewelry and fine art shops for business in Vietnam?
Pursuant to Chapter 2 of Decree 24/2012/ND-CP, a business entity wishing to open gold jewelry and fine art shops for business in Vietnam must meet the following conditions:
* Firstly, trading gold jewelry and fine arts
- The enterprises is established under law provisions and
- The Certificate of enterprise registration must include trading in gold jewelry and fine arts.
- There are premises, facilities, and equipment serving gold jewelry and fine art trading.
In case of satisfying the above conditions, the business entity can conduct business activities after being licensed by the State Bank.
* Secondly, producing gold jewelry and fine arts
With the production of gold jewelry and fine arts, business conditions are strict
- Business conditions:
+ The enterprise is established under law provisions that have registered to produce gold jewelry and fine arts in the Certificate of Business Registration.
- There are premises, facilities, and necessary equipment serving the production of gold jewelry and fine arts.
- Application for issuing a certificate of eligibility for gold jewelry and fine art production includes documents specified in Article 8 of Circular 16/2012/TT-NHNN amended by Clause 1 Article 1 of Circular 03/2017/TT-NHNN and a number of regulations are repealed by Clause 5 Article 1 of Circular 24/2022/TT-NHNN as follows:
+ An application form for issuing a Certificate of eligibility for gold jewelry and fine art production
+ Documents or materials proving the ownership or rights to use the production location; declaration of material facilities and equipment serving the gold jewelry and fine art production.
- Competence to issue Certificates: banks’ branches under provinces and cities
- Time limit for issuance: 30 working days from the date of receipt of the complete application.
Accordingly, it is possible to register individual or household businesses or sole proprietorships for gold jewelry and fine art business to ensure the most efficiency. In the course of doing business, the business entity must fulfill tax obligations, including the following taxes:
- Licensing tax
- Value-Added Tax
- Corporate income tax
Thus, in case of satisfying all the above conditions, business entities can conduct business activities in accordance with the law and are guaranteed interests in business by law.
What are the notable contents when opening gold jewelry and fine art shops for business in Vietnam?
Pursuant to a number of provisions in the Enterprise Law 2020, Decree 01/2021/ND-CP, when opening gold jewelry and fine art shops for business in Vietnam, the business shall be registered according to the enterprise model. Therefore, when opening gold jewelry and fine art shops for business in Vietnam, individuals and organizations should pay attention to the following contents:
- Regarding the name of gold jewelry and fine art shops: The name of the shop should be short, easy to remember, and meaningful. Before registering names for shops, it is recommended to refer to the names of registered enterprises in the National Business Registration Database. To avoid duplication, it is recommended to name to avoid prohibitions in business naming according to Article 38 of the Enterprise Law 2020
- Regarding the head office of the enterprise: It is the contact point of the enterprise in the territory of Vietnam. Have a clear address. Defined as the number of houses, niches, alleys, alleys, streets, streets or villages, hamlets, communes, wards, townships, districts, districts, towns, cities of provinces, provinces or centrally-run cities. There may be additional phone numbers, fax numbers, and emails.
- Regarding business lines: in the system of economic sectors of Vietnam issued together with Decision 27/2018/QD-TTg to record business lines in the Application form for business registration.
- Regarding charter capital: The law does not specify the amount of charter capital when opening gold jewelry and fine art shops. But it depends on the business line of the store.
+ For gold jewelry and fine art trading: the current law does not specify charter capital.
+ For gold bars trading: the minimum charter capital is VND 100 billion or more (Article 11 of Decree 24/2012/ND-CP).
+ In addition, other conditions must be met.
What are the procedures for opening gold jewelry and fine art shops in Vietnam? What are the required documents for opening gold jewelry and fine art shops?
- Individuals and organizations, when opening gold jewelry and fine art shops, must register business. They must choose one of the types of enterprises to proceed with the preparation of the establishment application.
Individuals and organizations may prepare the establishment application for one of the following types of enterprises: Joint-stock company; two-member limited liability company; single-member limited liability company; partnership; sole proprietorship. Each type of enterprise will have a different establishment application.
The procedures for establishing an enterprise in practice as prescribed in Article 33 of Decree 01/2021/ND-CP are as follows:
The business owner, legal representative, or authorized person submits a soft copy on the National Business Registration Portal. The Business Registration Office shall issue the enterprise registration certificate within 03 working days from the receipt of the satisfactory application.
If the application is not satisfactory or the enterprise’s name is not conformable with regulations, the Business Registration Office shall inform the enterprise or its founder of necessary revisions within 03 working days from the receipt of the application. The Business Registration Office must include every necessary revision to the application in a notification.
From the above contents, first of all, to open gold jewelry and fine art shops for business, an enterprise must be established. Therefore, gold jewelry and fine art business must be allowed by state agencies.
In addition, enterprises producing gold jewelry and fine arts must be licensed by the State Bank.
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