Each enterprise is issued a unique code called an enterprise code and this code cannot be reused for other businesses. So what is the current law on business code in Vietnam?
Article table of contents
Previously, according to Clause 1 Article 8 of the Decree No. 78/2015/NĐ-CP of the Vietnam Government on enterprise registration: Each enterprise is issued with a single enterprise ID number. This number is also the enterprise’s taxpayer identification number (TIN). However, the Decree No. 01/2021/ND-CP issued on January 04, 2021 (replaces the Decree No. 78/2015/NĐ-CP) stipulates this issue as following:
Each enterprise is issued with a single enterprise ID number. This number is also the enterprise’s taxpayer identification number (TIN) and social insurance participant’s code.
Thus, in accordance with the current regulation, the enterprise ID number is also the enterprise’s taxpayer identification number and social insurance participant’s code.
In fact, this regulation was previously mentioned in the Decree No. 122/2020/ND-CP, issued on October 15, 2020, stipulating single-window cooperation in processing applications for registration of enterprises, branches, representative offices; declaration of personnel; social insurance participation; use of invoices by enterprises. Specifically, according to Article 5 of the Decree No. 122/2020/ND-CP, the procedures for cooperation between business registration authorities and social insurance authorities are specified as following:
The ID number of an enterprise/branch/representative office is also its social insurance participant number.
When an enterprise/branch/representative office pays social insurance premiums, the social security authority shall share information about the number of its employees who pay social insurance premiums with the business registration authority to serve state management of registered enterprises.
It can be seen that synchronizing the enterprise code into the number of the unit participating in social insurance is a measure to help facilitate the interoperability of procedures for registration of business establishment and issuance of social insurance codes.
Besides, the Decree No. 01/2021/ND-CP also specifies the ID number of a business location, which is a series of 5 digits from 00001 to 99999. This number is not TIN of the business location. Moreover, Decree No. 01/2021/ND-CP also states many other notable new contents on enterprise codes compared to Decree No. 78/2015/NĐ-CP such as:
- ID numbers of an enterprise’s affiliates are issued to the enterprise’s branches and representative offices. These numbers are also TINs of branches and representative offices (new provision);
- Enterprise ID numbers of enterprises that are established and operating under the investment license or investment certificate (also the business registration certificate) or another document of equivalent validity, or securities trading license shall be their TINs issued by tax authorities (new dossiers supplemented).
In summary, the Government of Vietnam has recognized the enterprise code as the number of the participating units in social insurance from October 15, 2020, but until January 4, 2021 that the Decree No. 01/2021/ND-CP officially takes effect. Enterprises need to pay attention to comply with the law.
Le Thanh
