Enterprises are not required to update the Citizen ID card of legal representatives before March 31, 2023 in Vietnam

Enterprises are not required to update the Citizen ID card of legal representatives before March 31, 2023 in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On March 21, 2023, the Business Registration Management Department of the Ministry of Planning and Investment of Vietnam issued Official Dispatch 43/DKKD-GS on updating the citizen identification information with the chip of the legal representative.

Thus, the Business Registration Management Department of the Ministry of Planning and Investment of Vietnam has answered questions regarding updating the chip-based citizen identification information of the legal representative before March 31, 2023 as follows:

Enterprises are not required to update the Citizen ID card of legal representatives before March 31, 2023 in Vietnam

Specifically, the Business Registration Administration received feedback from a number of business registration agencies and enterprises about the receipt of notices from the tax authorities requesting: No later than March 31, 2023, the enterprise must complete the procedures for updating the citizen ID with chip for the legal representative on the Certificate of Business Registration; past the above time limit, the enterprise will be administratively sanctioned.

To address the aforementioned issue, the Business Registration Administration has met with the General Department of Taxation and the General Department of Taxation to confirm that no policy, email, or notice will be sent to taxpayers regarding the content of updating the chip citizenship information of the legal representative before March 31, 2023.

The registration of changes, notification of changes in business registration contents have been specified in the Law on Enterprises, Decree 01/2021/ND-CP.

At the same time, the Business Registration Management Department requested the Departments of Planning and Investment of the provinces and centrally-run cities direct the Business Registration Office to widely inform the business community in the area; in case law violations are detected, promptly notify the competent state agencies for handling.

Thus, there is no requirement that the enterprise update the legal representative's Citizen ID card by March 31, 2023. 

Fines for administration violations against regulations on registering changes in enterprise registration certificates in Vietnam

Within the time limit, if the enterprise fails to register to changes in enterprise registration certificates, the enterprise may be subject to the fines specified in Article 44 of Decree 122/2021/ND-CP, as follows:

(1) A warning shall be imposed for violations against regulations on deadline for registering changes in the enterprise registration certificate and changes in branch/representative office/business location registration information 01 - 10 days behind schedule.

(2) A fine ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for violations against regulations on deadline for registering changes in the enterprise registration certificate and changes in branch/representative office/business location registration information 11 - 30 days behind schedule.

(3)  A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for violations against regulations on deadline for registering changes in the enterprise registration certificate and changes in branch/representative office/business location registration information 31 - 90 days behind schedule.

(4) A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for violations against regulations on deadline for registering changes in the enterprise registration certificate and changes in branch/representative office/business location registration information 91 days or longer behind schedule.

(5) A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for failure to register changes in the enterprise registration certificate and changes in branch/representative office/business location registration information.

In addition to fines, the violator is compelled to:

- Register changes in the enterprise registration certificate and changes in branch/representative office/business location registration information if any of the violations specified in (1), (2), (3) và (4) is committed in cases where the changes are yet to be registered as prescribed;

- Register changes in the enterprise registration certificate and changes in branch/representative office/business location registration information if the violation in (5) is committed.

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