Business license registration in Vietnam

Business license means a license granted by a competent State agency to an enterprise conducting conditional business lines. Thus, for business lines that require a business license, only after being granted a business license, the business entity is entitled to do business.

It is necessary to distinguish a business license from a business registration certificate. A business registration certificate is a document issued by a competent authority that gives birth to an enterprise and records the information of the enterprise. For enterprises that already have a business license and the business lines are conditional business, if they want to do business in that line, they have to take one more step, which is to apply for a business license. Normally, a business license is issued after the Business Registration Certificate, and business can only be carried out after a business license has been issued by the competent authority.

Depending on the line of business you want to do business, the registration of a business license is done in accordance with the provisions of the legal documents governing that business line.

Example: The passenger transport business units and the goods transport business units must have the permit for transport business by auto specified in Decree No. 86/2014/NĐ-CP of Vietnam’s Government. Procedures for issue of business Permit are as follows:

- The transport business unit will submit 01 dossier to request the issue of business Permit to the licensing organ by post or directly at the head office of the licensing organ. In case the dossier needs modification or supplementation, the licensing organ will inform directly or in writing of the contents to be supplemented or modified to the transport business unit within 03 working days after the receipt of dossier;

- Within 05 working days, after the receipt of dossier in accordance with regulations, the issuing organ will verify the dossier and issue the business Permit and approve the attached business Plan. In case of failure to issue the business Permit, the licensing organ will reply in writing stating the reasons.

A fine of VND 7,000,000 - VND 10,000,000 shall be imposed upon an individual, VND 14,000,000 - VND 20,000,000 upon an organization that provides transport services by car without a License for transport services (Point a Clause 5 Article 18 of Decree No. 46/2016/NĐ-CP of Vietnam’s Government).

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