Is it mandatory for enterprises to have abbreviated names in Vietnam?
Is it mandatory for enterprises to have abbreviated names in Vietnam? How much is fine for failure to change the enterprise’s name when having the same name with another enterprise in Vietnam?
I am about to set up a business and according to my research, I see that the business has an abbreviated name, some businesses do not have an abbreviated name. So, let me know, is the business required to have an abbreviated name? How much is the fine for failure to change the enterprise’s name when having the same name with another enterprise?
Please advise. Thankyou.
1. Is it mandatory for enterprises to have abbreviated names in Vietnam?
Article 37 of the Law on Enterprises 2020 provides for names of enterprises, specifically as follows:
1. The Vietnamese name of an enterprise shall contain two elements in order:
a) The type of enterprise;
b) The proper name.
2. The type of enterprise shall be “công ty trách nhiệm hữu hạn” or “công ty TNHH” for limited liability companies; “công ty cổ phần” or “công ty CP” for joint stock companies; “công ty hợp danh” or “công ty HD” for partnerships; “doanh nghiệp tư nhân”, “DNTN” or “doanh nghiệp TN” for sole proprietorships.
3. The proper name shall consist of letters in the Vietnamese alphabet, the letters F, J, Z, W, numbers and symbols.
4. The enterprise’s name shall be displayed at the headquarters, branches, representative offices and business locations of the enterprise and printed or written on transaction documents, records and printed materials published by the enterprise.
5. Pursuant to regulations of this Article, Articles 38, 39 and 41 of this Law, the business registration authority is entitled to refuse to register enterprise’s name.
According to Article 39 of the Law on Enterprises 2020, enterprise’s name in foreign language and abbreviated name, as follows:
1. The enterprise’s name in a foreign language is the name translated from the Vietnamese name into one of the Latin-based languages. The proper name of the enterprise’s may be kept unchanged or translated into the foreign language.
2. In case an enterprise’s name is in a foreign language, the text size of the foreign name shall be smaller than the Vietnamese name displayed at the enterprise’s headquarters, branches, representative offices and business locations and on the enterprise’s transaction documents, records and materials published by the enterprise.
3. The abbreviated name of an enterprise may be abbreviation of its Vietnamese name or foreign language name.
Thus, the abbreviated name of the enterprise is not a mandatory name of the enterprise, the enterprise must have a Vietnamese name and may or may not have an abbreviated name.
2. How much is fine for failure to change the enterprise’s name when having the same name with another enterprise in Vietnam?
Pursuant to Article 48 of Decree 122/2021/ND-CP stipulating violations against regulations on reporting and complying with requests of business registration authorities as follows:
1. A fine ranging from VND 10,000,000 to VND 15,000,000 shall be imposed for any of the following violations:
a) Failure to submit a report or submit a report on time at the request of a business registration authority;
b) Failure to submit an adequate, accurate report at the request of a business registration authority.
2. A fine ranging from VND 15,000,000 to VND 20,000,000 shall be imposed for any of the following violations:
a) Carrying on a conditional business line after a suspension has been requested by the business registration authority;
b) Failure to change the enterprise’s name at the quest of the business registration authority where the enterprise’s name infringes upon industrial property right.
3. Remedial measures:
The violator is compelled to:
a) submit a report to the business registration authority if the violation specified in Point a Clause 1 of this Article is committed;
b) provide adequate, accurate information in the report submitted to the business registration authority if the violation specified in Point b Clause 1 of this Article is committed;
c) change the enterprise’s name or remove the infringing element in the name if the violation specified in Point b Clause 2 of this Article is committed.
According to Article 4 of Decree 122/2021/ND-CP stipulating fine levels:
1. Maximum fines for administrative violations specified in this Decree are as follows:
a) The maximum fine for an administrative violation against regulations on investment: VND 300,000,000;
b) The maximum fine for an administrative violation against regulations on bidding: VND 300,000,000;
c) The maximum fine for an administrative violation against regulations on enterprise registration: VND 100,000,000;
d) The maximum fine for an administrative violation against regulations on planning: VND 500,000,000.
2. The fines for administrative violations specified in this Decree are imposed upon organizations (except for the fines for violations specified in Point c Clause 2 Article 28; Points a and b Clause 2 Article 38; Article 62 and Article 63 of this Decree, which are imposed upon individuals). For the same violation, the fine incurred by an individual is 1/2 (half) that incurred by an organization.
Accordingly, when an organization names an enterprise with the same name but does not change it, it will be fined from VND 15,000,000 to VND 20,000,000. In addition, it is also forced to change the enterprise’s name or remove the infringing element in the name. Violators will be fined from VND 7,500,000 to VND 10,000,000 upon individuals.
Best Regards!
