Recently, the Government of Vietnam has issued the Decree No. 01/2021/NĐ-CP on enterprise registration. This Decree gives detailed guidelines on writing business lines for business registration.
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Specifically, according to Article 7 of the Decree No. 01/2021/NĐ-CP of the Vietnam’s Government, writing business lines are instructed as following:
(1) When applying for establishment of an enterprise, notifying changes of business lines, or applying for the enterprise registration certificate, the enterprise’s founder or the enterprise shall select the level-4 business lines in Vietnam Standard Industrial Classification and write them on the application for enterprise registration, notification of changes to enterprise registration, or application for the enterprise registration certificate. The business registration authority shall provide instructions, compare information, and enter the enterprise’s business lines into the National Enterprise Registration Database.
(2) Specific level-4 business lines in Vietnam Standard Industrial Classification in the Prime Minister’s decision.
(3) Conditional business lines prescribed in other legislative documents shall be written according to such legislative documents.
(4) Business lines that are not mentioned in Vietnam Standard Industrial Classification but prescribed in other legislative documents will be written according to such legislative documents.
(5) Business lines that are mentioned in neither Vietnam Standard Industrial Classification nor other legislative documents, the business registration authority shall consider adding them to the National Enterprise Registration Database if they are not prohibited, and then request the Ministry of Planning and Investment (General Statistics Office of Vietnam) to consider adding them as new business lines.
(6) In case an enterprise wishes to register more detailed business lines than level 4, it shall select a level 4 business line in Vietnam Standard Industrial Classification, then specify the enterprise's business lines right under the level-4 line, provided the detailed lines are appropriate for the selected level-4 line. In such case, the enterprise’s business lines are the detailed lines it specified.
(7) Business lines prescribed in (3) and (4) shall be written in accordance with (6), which means detailed business lines must be written under the business lines prescribed by relevant legislative documents.
(8) Specialized agencies are responsible for management of conditional business lines, business lines restricted to foreign investors, and inspection of enterprises’ fulfillment of conditions in accordance with regulations of specialized laws.
Previously, the Decree No. 78/2015/NĐ-CP stipulated that when a business registration authority receives a notification from a competent authority that an enterprise is engaging in conditional business lines without satisfying all conditions, the business registration authority shall request the enterprise to stop engaging in such conditional business lines. If the enterprise fails to comply with the request, the business registration authority shall request the enterprise to report as prescribed in Point c Clause 1 Article 209 of the Law on Enterprises of Vietnam. If the enterprise fails to report, the business registration authority shall revoke the certificate of enterprise registration as prescribed in Point d Clause 1 Article 211 of the Law on Enterprises of Vietnam. However, the Decree No. 01/2021/NĐ-CP of the Vietnam’s Government has annulled this provision.
Thuy Tram
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- Decree No. 01/2021/NĐ-CP
