An enterprise identification code (business identity number) is a unique number assigned to each business entity, used for identifying and managing the enterprise in transactions, tax obligations, and administrative procedures. Such a code serves as an essential tool to ensure transparency and efficiency in business management and is a mandatory legal requirement for business operations. NPLaw invites readers to explore the legal issues related to enterprise identification codes.
I. The importance of enterprise identification codes in business operations
Enterprise identification codes play an extremely important role in business operations. Such a unique code allows government authorities, especially the tax authority, to identify the enterprise within their management systems. Beyond fulfilling tax obligations, the enterprise identification code is a prerequisite for engaging in legitimate transactions with other entities and individuals, including signing contracts, making payments, and opening bank accounts.
Moreover, the enterprise identification code enables the monitoring and management of business activities, fostering transparency in financial transactions. It also serves as a basis for enterprises to obtain business licenses, participate in tenders, and implement various administrative procedures. Therefore, the enterprise identification code is not only a legal requirement but also a critical factor ensuring the sustainable and lawful development of enterprises in today’s business environment.
II. Legal provisions on enterprise identification codes in vietnam
1. What is an enterprise identification code and is it mandatory?
An enterprise identification code is a unique code issued to an enterprise entity to identify it within the electronic identification and authentication system. Such a code enables authorities and related organizations to accurately and easily recognize and monitor the enterprise’s activities.
2. Methods for issuing enterprise identification codes under current regulations
According to Article 12 of Decree No. 69/2024/ND-CP, enterprise identification codes may be issued through the following methods:
- Registration via the national identification application (VNeID);
- Issuance by the authority managing electronic identification and authentication or by the authority managing citizen identification.
Accordingly, enterprises may choose one of the above methods to obtain their identification code.
3. Are there any industries restricted or prohibited from being assigned enterprise identification codes?
Currently, Vietnamese law does not explicitly prohibit the issuance of enterprise identification codes for specific industries. However, identification codes are only issued to enterprises operating in lawful industries and fully complying with legal requirements on business registration and operational conditions. If an enterprise registers to operate in a prohibited industry, it will not be able to complete the registration process and will not be issued a tax identification code.
In summary, identification codes are only issued to enterprises registered in lawful sectors and meeting all relevant legal requirements.
III. Questions about enterprise identification codes
1. Can an enterprise change its identification code?
Pursuant to Article 5 of Decision No. 20/2020/QD-TTg, an electronic identification code corresponds to the enterprise registration number, cooperative registration number, or household business registration number in accordance with applicable laws.
Article 8 of Decree No. 01/2021/ND-CP and Clause 1, Article 29 of the Law on Enterprise 2020 state that an enterprise identification code is generated by the National Business Registration Information System and is issued upon the establishment of the enterprise. It is recorded in the Enterprise Registration Certificate. Each enterprise has one unique number that is not reused or reassigned to any other entity.
Therefore, an enterprise cannot change its identification code during its operation.
2. Which authority is responsible for issuing enterprise identification codes?
According to Article 16 of Decree No. 69/2024/ND-CP on electronic identification and authentication, the Police Department for Administrative Management of Social Order under the Ministry of Public Security is authorized to issue electronic identification codes for enterprises.
Thus, the competent authority for issuing such codes is the Police Department for Administrative Management of Social Order – Ministry of Public Security.
3. What are the conditions for being issued the enterprise identification code?
According to Clause 1, Article 29 of the Law on Enterprise 2020, an enterprise identification number is generated by the National Business Registration Information System and is granted upon the enterprise's establishment. It is recorded in the Enterprise Registration Certificate. Each enterprise has a unique code that cannot be reassigned. It is not only used for enterprise identification but also for administrative, tax, and other legal obligations.
Additionally, Clause 1, Article 27 of the Law on Enterprise 2020 provides that to be issued an Enterprise Registration Certificate (and thereby an identification code), an enterprise must meet the following conditions:
- Operate in a business line not prohibited by law;
- Have a legally compliant enterprise name;
- Submit a valid application dossier;
- Pay the prescribed registration fee.
Once these requirements are met, the enterprise will be issued a registration certificate, which includes the unique enterprise identification code for use in tax, administrative, and other legal procedures.
4. Can the enterprise identification code be used in place of a tax code?
Pursuant to Article 8 of Decree No. 01/2021/ND-CP and Clause 3, Article 5 of Circular No. 86/2024/TT-BTC:
- An enterprise identification code is the same as the enterprise’s tax code and is issued upon registration. It is also used for social insurance registration and is recorded in the Enterprise Registration Certificate. It is automatically generated by the National Business Registration Information System and the Tax Registration System, helping streamline and unify enterprise information management.
In short, the enterprise identification code, tax code, and social insurance code are one and the same. Hence, enterprises do not need a separate tax code.
5. In what cases can an enterprise’s identification code be revoked?
According to Clause 2, Article 15 of Decree No. 69/2024/ND-CP, an enterprise identification code may be revoked in the following cases:
- The enterprise (as the identity subject) requests to deactivate its identification account via the VNeID application;
- The enterprise violates the terms of use of the VNeID application;
- The enterprise is dissolved or ceases operations as prescribed by law;
- Prosecuting agencies or competent authorities, or service users, request that the identity account be deactivated. Such requests must be submitted to the police for review.
Thus, an enterprise’s identification code may be revoked upon its own request, legal violations, dissolution or suspension, or upon the request of competent authorities.
IV. Legal Consulting Services on Enterprise Identification Codes
The above article from NPLaw outlines the legal framework concerning enterprise identification codes. With a team of experienced lawyers and legal consultants, NPLaw is ready to assist and advise clients on all legal matters related to enterprise identification codes. For support on this or any other legal issue, please contact NPLaw via the following:
