Registration of conversion from household business into enterprise under latest regulations in Vietnam

Registration of conversion from household business into enterprise under latest regulations in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Registration of conversion from household business into enterprise under latest regulations in Vietnam

According to Article 27 of Decree 01/2021/ND-CP, regulations on registration of conversion from household business into enterprise are as follows:

-  The application for registration of an enterprise which is converted from a household business shall be submitted to the Business Registration Office of province where the enterprise will be headquartered.

- The application for registration of an enterprise which is converted from a household business includes the original certificate of household business registration, the copy of the tax registration certificate and the documents specified in Articles 21, 22, 23 and 24 of Decree 01/2021/ND-CP corresponding to each enterprise type but excludes the investment registration certificate specified in Point b Clause 4 Article 22, Point c Clause 4 Article 23 and Point c Clause 3 Article 24 of Decree 01/2021/ND-CP.

If foreign investors/foreign-invested business entities contribute capital to or purchase of shares/stakes of the enterprise converted from a household business in case procedures for registration of capital contribution or purchase of shares/stakes must be followed in accordance with the Law on Investment, the application for enterprise registration must include the written approval given by the investment registration authority for capital contribution or purchase of shares/stakes by such foreign investors/foreign-invested business entities.

- Within 02 working days from the date of issue of the enterprise registration certificate, the Business Registration Office shall send the copy of the enterprise registration certificate and original certificate of household business registration to the business registration authority of district where the household business is located for completing procedures for shutdown of the household business.

2. What are the regulations on receipt and processing of applications for enterprise registration in Vietnam?

Pursuant to Article 32 of Decree 01/2021/ND-CP regulations on receiving and processing business registration applications as follows:

- The person responsible for application for enterprise registration as prescribed herein shall submit the application to the Business Registration Office of the province where it is headquartered.

- An application for enterprise registration shall be received and updated on the National Enterprise Registration Information System when all of the following conditions are satisfied:

+ It contains adequate documents as prescribed in Decree 01/2021/ND-CP;

+ The enterprise’s name has been written on the application form for enterprise registration or changes to enterprise registration information or notification of changes to enterprise registration information;

+ There is an address of the person who submits the application for enterprise registration;

+ Fees and charges for enterprise registration are fully paid.

- After receiving an application for enterprise registration, the Business Registration Office shall give a confirmation slip to the person who submits the application.

- After giving the confirmation slip, the Business Registration Office shall check the legitimacy of the application, sufficiently and accurately enter information in the application for enterprise registration into the National Enterprise Registration Information System and publish digitalized documents contained in the application on the same.

- The enterprise or its founder may stop following procedures for enterprise registration when the application for enterprise registration is not yet approved on the National Enterprise Registration Information System.

In this case, the person competent to sign the application form for enterprise registration shall send a written request for termination of procedures for enterprise registration to the Business Registration Office to which the application is submitted.

The Business Registration Office shall consider giving a notification of termination of procedures for enterprise registration and cancel the application for enterprise registration on the National Enterprise Registration Information System within 03 working days from the receipt of the enterprise’s request.

If the enterprise’s request is refused, the Business Registration Office shall give a written notification in which reasons for such refusal are specified to the enterprise or its founder.

Nguyen Ngoc Que Anh

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