What is enterprise registration? Rights to establish enterprises and obligations to apply for enterprise registration in Vietnam

What is enterprise registration? Rights to establish enterprises and obligations to apply for enterprise registration in Vietnam (Internet image)

Regarding this issue, LawNet responded as follows:

1. What is enterprise registration?

According to Clause 1, Article 3 of Decree 01/2021/ND-CP, enterprise registration means the registration by the enterprise’s founder of information about the enterprise to be established or the enterprise’s registration of changes in information about enterprise registration with the business registration authority, which is retained on the National Enterprise Registration Database.

The enterprise registration includes registration of enterprise establishment, registration of operation of its branch, representative office or business location, and other registration and notification obligations under Decree 01/2021/ND-CP,.

2. Rights to establish enterprises and obligations to apply for enterprise registration in Vietnam

Rights to establish enterprises and obligations to apply for enterprise registration under Article 5 of Decree 01/2021/ND-CP, are as follows:

- Establishing enterprises is the right of every entity. This right is protected by the State.

- The enterprise’s founder or the enterprise has to fully and promptly fulfill the obligation to apply for enterprise registration, disclose information about establishment and operation of the enterprise in accordance with regulations herein and relevant legislative documents.

- Business registration authorities and other agencies are prohibited to harass applicants while receiving and processing applications for enterprise registration.

- Ministries, ministerial agencies, People’s Councils and People’s Committees at all levels are not permitted to promulgate their own regulations on enterprise registration. Regulations on enterprise registration promulgated by Ministries, ministerial agencies, People’s Councils and People’s Committees at all levels that are contrary to regulations herein shall be no longer valid.

3. Writing business lines in Vietnam

According to Article 7 of Decree 01/2021/ND-CP, writing business lines is as follows:

- 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.

- Specific level-4 business lines prescribed in Clause 1 of Article 7 of Decree 01/2021/ND-CP are specified in the Prime Minister’s decision.

- Conditional business lines prescribed in other legislative documents shall be written according to such legislative documents.

- 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.

- 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.

- 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.

- Business lines prescribed in Clause 3 and Clause 4 of Article 7 of Decree 01/2021/ND-CP shall be written in accordance with Clause 6 of Article 7 of Decree 01/2021/ND-CP, which means detailed business lines must be written under the business lines prescribed by relevant legislative documents.

- 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.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE