Currently, online business is becoming increasingly popular and developing rapidly. People can now conveniently shop from home, which appeals to a large number of consumers.
I. Current situation of establishing online sales companies
The trend of establishing online sales companies has been significantly increasing in recent years. Several factors play important roles in promoting the development of such companies, such as the growth of the online shopping market and the flexibility of online business operations.
II. Legal regulations on establishing online sales companies
1. Definition of establishing an online sales company
Establishing an online sales company means forming a business in accordance with Vietnamese law for the purpose of trading products and services online through digital platforms such as websites, social networks, and e-commerce platforms.
2. Conditions for establishing an online sales company
According to the List of Conditional Business Investment Sectors in Appendix IV of the Law on Investment 2020, e-commerce is considered a conditional business investment sector.
As stipulated in Clause 9, Article 3 of Decree No. 52/2013/ND-CP on E-commerce, a conditional business investment activity requires individuals and organizations to meet specific conditions when engaging in such business.
Similar to investment activities, establishing an online business also requires certain conditions, specifically:
- Conditions related to the legal entity establishing the company;
- Conditions related to the type of enterprise;
- Conditions for setting up an e-commerce website for sales;
- Conditions for setting up a website that provides e-commerce services.
3. Step-by-Step guide for online business registration procedures and documents for investors
According to Articles 44 and 45 of Decree No. 01/2021/ND-CP, the online business registration procedures are as follows:
Step 1: Log into the National Business Registration Portal.
Login link: https://dichvuthongtin.dkkd.gov.vn/inf/default.aspx
Step 2: Fill in the required information, upload electronic documents, digitally sign the application, and pay the prescribed fees.
Step 3: The Business Registration Office receives and processes the application.
- The applicant will receive a receipt for the submitted application.
- If the application meets the conditions for business registration, the Business Registration Office will issue a business registration certificate and notify the applicant.
- If the application does not meet the conditions, a notification will be sent via the online portal requesting amendments or supplements to the application.
Step 4: Receive the result of the application.
Previously, after receiving approval, the applicant had to submit a hard copy of the application to receive the Business Registration Certificate.
Currently, there is no need to submit a paper file, but the applicant must still go to the Business Registration Office in person to collect the certificate.
III. Common questions about establishing an online sales company
1. Factors that may affect the establishment of an online sales company
Several factors may influence the establishment of an online sales company, including:
- Market demand
- Sources of supply
- Investment capital
- Legal requirements
2. Common business sectors suitable for online sales companies
Here are some popular industries suitable for establishing an online sales company:
- Fashion: One of the most popular sectors for online business. You can sell clothes, footwear, accessories, jewelry, etc.
- Cosmetics: Skincare, makeup, and haircare products are highly favored in the online market.
- Electronics: Products like smartphones, laptops, tablets, etc., are widely purchased online.
- Home Appliances: Air fryers, water purifiers, robotic vacuum cleaners, and similar items are in high demand on e-commerce platforms.
3. Is it mandatory to have a physical business location when establishing an online sales company?
According to Clause 1, Article 55 of Decree No. 52/2013/ND-CP on E-commerce: Traders and organizations must register online with the Ministry of Industry and Trade for the establishment of a website that provides e-commerce services after the website is fully developed, and complete in structure, functionality and information as per the service provision plan, and operating under the registered domain name before officially launching the service to users.
Therefore, if the online business operates spontaneously through social networks and does not have a physical store, business registration with the Ministry of Industry and Trade is not required.
However, if an individual or organization runs an online business with a physical store and regular operations, they are required to apply for a business license.
4. What conditions must be met to sell medicine via e-commerce platforms?
Although current laws do not explicitly prohibit online sales of medicine, they also do not clearly regulate this form of business. According to Article 33 of the 2016 Law on Pharmacy, businesses must meet specific requirements in terms of technical standards, personnel, and facilities to be eligible to sell medicine.
Retail establishments must also have a licensed pharmacist on-site to ensure proper consultation and compliance with pharmaceutical standards. All medicines must be approved by the Ministry of Health for distribution as either therapeutic drugs or health supplements.
Under the 2016 Law on Pharmacy and Decree No. 54/2017/ND-CP, there are only four legal forms of retail pharmaceutical sales:
- Pharmacy counters
- Medicine cabinets at commune/ward health stations
- Pharmacies
- Specialized stores selling herbal medicine or traditional medicine
However, exceptions were made during the Covid-19 pandemic, allowing pharmaceutical companies to sell medicine online under government restrictions. Therefore, if you intend to sell medicine online, you should consult with your local Department of Health for permission or guidance on legal compliance.
These are essential legal insights related to the establishment of online sales companies. For further support and detailed legal consultation, please contact NPLaw for assistance from experienced lawyers and legal professionals.
