What are the regulations on assistance for SMEs converted from household businesses in Vietnam? - Thanh An (Ha Nam, Vietnam)
Article table of contents
Regarding this issue, LawNet would like to answer as follows:
Regulations on assistance for SMEs converted from household businesses is specified in Section 1, Chapter IV of Decree 80/2021/ND-CP, including 5 policies as follows:
1. Assistance in counseling, preparation of documentation and completion of procedures for enterprise establishment in Vietnam
- 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 the following issues:
+ Documentation and procedures for enterprise registration;
+ Documentation and procedures for registration of the certificate of eligibility for conditional business lines (if any).
- A household business that wishes to receive the instructions mentioned in Clause 1 of this Article shall submit a physical or electronic application to the Department of Planning and Investment, including:
Valid copy of the Business Registration Certificate of the household business; valid copy of the TIN registration certificate; valid copies of documents proving payment of licensing fees, taxes and other amounts payable to state budget (if any), tax declaration forms within 01 years before conversion.
Within 03 working days from the receipt of the application, the Department of Planning and Investment shall provide counseling and instructions on the issues specified in Clause 1 of this Article free of charge.
05 Policies to SMEs converted from household businesses in Vietnam (Internet image)
2. Assistance in enterprise registration and publishing of enterprise’s information in Vietnam
SMEs 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.
3. Assistance in completion of procedures for registration of conditional business lines in Vietnam
An SME that is converted from a household business that keep operating in their conditional business lines without changing the scale shall submit a request to relevant competent authorities to be granted documents about fulfillment of business conditions.
Within 03 working days from the day on which the request is received, the competent authority shall issue the aforementioned documents to the SME.
4. Assistance in licensing fees
SMEs converted from household businesses will be exempted from licensing fees for 03 years from the issuance of the first Certificate of Enterprise Registration.
5. Counseling, instructing completion of tax procedures and accounting in Vietnam
- SMEs converted from household businesses will receive complimentary counseling and instructions about completion of tax procedures and accounting 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 mentioned in Clause 1 of this Article.
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Criteria for identification of SMEs in Vietnam According to Article 5 of Decree 80/2021/ND-CP, the criteria for identification of SMEs are specified as follows: - Any micro-enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 10 people, total revenue in the year not exceeding 3 billion VND or total capital of the year not exceeding 3 billion VND. Any micro-enterprise in the field of commerce and services that that has an average annual number of employees who participate in social insurance not exceeding 10 people, total revenue in the year not exceeding 10 billion VND or total capital of the year not exceeding 3 billion VND. - Any small enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 100 people, total revenue in the year not exceeding 50 billion VND or total capital of the year not exceeding 20 billion VND, except micro-enterprises mentioned in above Any small enterprises in the field of commerce and service that has an average annual number of employees who participate in social insurance not exceeding 50 people, total revenue in the year not exceeding 100 billion VND or total capital of the year not exceeding 30 billion VND, except micro-enterprises mentioned in above - Any medium enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 200 people, total revenue in the year not exceeding 200 billion VND or total capital of the year not exceeding 100 billion VND, except micro-enterprises and small enterprises mentioned above. Any medium enterprises in the field of commerce and service that has an average annual number of employees who participate in social insurance not exceeding 100 people, total revenue in the year not exceeding 300 billion VND or total capital of the year not exceeding 100 billion VND, except micro-enterprises and small enterprises mentioned in Clause 1 and Clause 2 of this Article. |
Nhu Mai
