Decree No. 01/2021/NĐ-CP: Concretizing the reforms and innovations of the Law on Enterprises 2020 of Vietnam

1. Clearly and specifically stipulating the application, order and procedures for business registration, simplifying and reducing the composition of documents, reducing the load of information to be declared by making the most of the available information on the National Enterprise Registration Information System and connected information systems.

2. Remove some unnecessary administrative procedures such as: Announcement of seal, Notice of change of information on business managers, private placement of shares, etc.

3. Continue to modernize and strongly digitalize business registration by upgrading and completing regulations on online business registration, providing most public services online in Level 4 to reduce the time and cost of setting up a business.

4. Publicizing basic information about businesses on the National Enterprise Registration Information System, facilitating people to easily access official and legally valid information sources about businesses, increasing the community's ability to monitor the activities of enterprises, contributing to improving the efficiency of "post-inspection" and making the business environment transparent.

5. Adding a new business community to register at the business registration office, which are securities companies, securities investment fund management companies, securities investment companies, branches of foreign securities companies and branches of foreign fund management companies in Vietnam in accordance with the provisions of the Law on Securities 2019.

6. Completing regulations on handling administrative violations in the field of business registration, especially thoroughly handling dishonest and inaccurate declarations, forging business registration dossiers, handling enterprises "flee or disappear" in order to increase deterrence and contribute to creating a healthy and safe business and investment environment.

7. Completing a step of the legal framework on household businesses, institutionalizing regulations on household businesses. Specifically, the Decree No. 01/2021/NĐ-CP has clearly defined the entity establishing a household business in accordance with the Civil Code 2015 of Vietnam, clearly separating the rights and obligations of the business household owner and household members, ensuring business rights and obligations of business households, facilitating the transformation of business households into enterprises and a number of other important contents.

Reference sources:

- Decree No. 01/2021/NĐ-CP on enterprise registration issued by the Government of Vietnam, effective from January 04, 2021.

- First Decree of Vietnam’s Government in 2021.

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