Recently, the Government of Vietnam has just issued 02 important documents on guiding enterprise registration, which are the Decree No. 01/2021/NĐ-CP and the Decree No. 122/2020/NĐ-CP. New policies in these two documents have integrated procedures and shortened the time limit for business registration to promote business start-up.
Article table of contents
1. Decree No. 01/2021/NĐ-CP on enterprise registration
Decree No. 01/2021/NĐ-CP issued by the Government of Vietnam on January 04, 2021 has concretized the reforms and innovations of the Law on Enterprises of Vietnam, and at the same time overcomes the shortcomings in the past time. Accordingly, this Decree clearly and specifically stipulates the dossiers, order and procedures for enterprise registration. In particular, the provisions of the Decree have simplified, reduced the composition of documents, reduced the load of information to be declared by making the most of the information available in the National Information System on business registration and connected information systems.
Specifically, 5 important reforms in Decree 01/2021/ND-CP include:
- Reduce administrative procedures and facilitate business establishment;
- Improve the legal framework on corporate governance and raise the level of protection of investors and shareholders in accordance with international standards and practices;
- Improve the governance effectiveness of state-owned enterprises in the spirit of Resolution No. 12-NQ/TW of the Central Executive Committee;
- Contributing supplement to the capital market development channels in order to diversify capital sources for production and business investment;
- Facilitating business reorganization and trading.
A number of unnecessary administrative procedures such as announcement of seal, notice of change of information on enterprise managers, private placement of shares, etc. are also abolished by this Decree.
2. Decree No. 122/2020/NĐ-CP on single-window cooperation in processing applications for registration of enterprises
Decree No. 122/2020/NĐ-CP issued by the Government of Vietnam on October 15, 2020 has many regulations to create maximum convenience for businesses such as reducing administrative procedures, reducing the amount of information that needs to be declared, and the number of state agencies that need to be contacted. Specifically, this Decree has integrated 04 processes including: registration of business establishment, registration of social insurance, labor declaration and registration of invoices into one process. According to this simplification of procedures, enterprises only have to prepare 1 set of documents, declare 1 form, carry out procedures at 1 agency that is a business registration agency and receive only 1 result. Concurrently, the procedure for starting a business is reduced by 10 days.
Thus, the process of starting a business in Vietnam has been reduced from 8 procedures within 16 days to only 3 procedures within 6 days. This regulation opens a big step forward for business start-ups in Vietnam, promoting economic development in the context of the great impact of Covid-19 on the economy in the past year.
Thuy Tram
