From October 15, 2020, violations of business activities relating to the business licenses will be fined heavily. Below are all guidelines for procedures for issuance of business licenses for foreign investors to avoid fines.
Article table of contents
Step 1: Preparing application
According to Article 12 of Decree No. 09/2018/ND-CP of Vietnam’s Government on guidelines for the Law on Commerce and the Law on Foreign Trade Management regarding sale of goods and other activities directly related to sale of goods of foreign investors and foreign-invested business entities in Vietnam, the application for business license includes:
1. An application form for a business license (form No. 01 of Appendix enclosed herewith).
2. A representation specifying:
- Conditions for issuance of a business license as prescribed in Article 9 hereof;
- Business plan: business activities and methods of doing business; presentation of business plan and market development; labor need; evaluation of the implications and socio-economic effectiveness of the business plan;
- Financial plan: An income statement made on the basis of the last audited financial statement if the enterprise has been established in Vietnam for at least 1 year; representation of capital, sources of funds and fund raising plans; enclosed with other financial documents;
- The sale of goods and other related activities and financial situation of the foreign-invested business entity which is determined until the application for a business license, in case of circumstance prescribed in Clause 6 Article 5 hereof.
- 3. A document justifying that the enterprise incurs no overdue tax issued by the tax authority.
- Copies of: the business registration certificate; certificate of registration for sale of goods and other related activities (if any).
Step 2: Submitting application
An application shall be submitted in person, by post, or via Internet to the licensing agency, which is the Department of Industry and Trade of the province where a foreign-invested business entity is headquartered.
Step 3: Processing application and returning the result
Within 10 working days from the date on which an adequate and satisfactory application is received, the licensing agency shall verify whether conditions prescribed in Article 9 hereof are satisfied.
- In case where conditions are not satisfied, the licensing agency shall provide explanation in writing.
- In case where conditions are satisfied:
+ The licensing agency shall issuance a business license to do business prescribed in Point a Clause 1 Article 5 hereof; if the application is refused, it shall provide explanation in writing;
+ The licensing agency shall forward the application and consultation with the Ministry of Industry and Trade and the managing Ministry as prescribed in Point a or b Clause 3 Article 8 hereof (form No. 09 of Appendix issued herewith).
Within 15 days from the date on which the application is received, the Ministry of Industry and Trade and the managing Ministry shall consider approving the issuance of a business license; if the application is refused, it shall provide explanation in writing (form No. 10 of Appendix issued herewith).
Within 3 working days from the date on which a notification of acceptance issued by the Ministry of Industry and Trade or managing Ministry is received, the licensing agency shall issue a business license. If the application is refused by the Ministry of Industry and Trade or managing Ministry, the licensing agency shall provide explanation in writing.
Le Vy
- Key word:
- business licenses
