What are current regulations on registering business lines? How do we implement the procedures for registering quickly? NP Law will answer all of these through the article related to the registration of business lines (industries) below:
I. Demand for the registration of business lines nowadays
In today's economy, there are many people who desire to set up their enterprises for operating businesses. In order to start a business, the first step must be determining a type of business line in which an enterprise is expected to operate. The enterprise registration and business line registration are the first steps for the business to come into operation.
II. About the registration of business lines
2.1. What is the business line?
The applicable Laws have no explanation of "what the business line is”. However, Decision No. 27/2018/QD-TTg regulated Vietnam standard industrial classification and the catalog of economic industry codes in Annex I attached.
When implementing administrative procedures related to business lines, enterprises determine appropriate industry codes based on the catalog of Vietnamese economic industry codes.
2.2. What is the registration of business lines?
Pursuant to Clause 1, Article 7 of Decree 01/2021/ND-CP on business lines:
- When registering to establish an enterprise, notifying supplements or changes of business lines, or applying for the Enterprise Registration Certificate, the owners or enterprises shall select the level-4 business lines in Vietnam standard industrial classification to write them on an application for business registration, a written notification of changes in enterprise registration contents, or an application for converting into the Enterprise Registration Certificate.
The business registration authority shall instruct and compare information, and record the enterprise’s business lines into the National Enterprise Registration Database.
Thus, the registration of business lines is considered as a part of the business registration application. When registering to establish a business, notifying supplements or changes of the business lines, or applying for converting into the Enterprise Registration Certificate, the owners or enterprises shall select the economic sector consistent with the business activities of enterprises expected to be established.
III. Procedures for the registration of business lines
3.1. Documents of the registration of business lines
Individuals and organizations wishing to register business lines need to prepare documents and necessary information such as company name, address, business lines, organization form, legal representatives and other relevant information.
Documents of business registration are specified for each type of business. Corresponding to a type of enterprise that an applicant selects, such an applicant needs to prepare a dossier as prescribed in Decree 01/2021/ND-CP.
3.2. Procedures the registration of business lines
a) In case of establishing a sole proprietorship (private enterprise), partnership, multi-member limited liability company, single member limited company, and joint stock company:
Step 1: Submitting documents and paying fees
- Submitting documents via electronic information network (https://dangkykinhdoanh.gov.vn/) or direct or postal service.
- The business registration fee is payable for the application for business registration. In the case of application via electronic information network, the fee is free.
Step 2: Receiving results of the application
- If the application is eligible for enterprise registration, the office shall publish the business registration contents.
- If the application is not eligible for enterprise registration, the publication fee will be returned.
- If the application is submitted directly or via postal service, the publication fee will not be returned.
b) In case of establishing business household:
Step 1: Submitting documents at District-Level Business Registration Office.
Step 2: The Office processes documents.
The District-Level Business Registration Office hands over the receipts to applicants and returns the results to the enterprise within 03 working days.
Step 3: Receiving the results.
- Valid application: Certificate of business household registration shall be issued.
- Invalid application: the Business Registration Office shall send a written notification stating the reason clearly.
IV. Problems when registering business lines
4.1. If the enterprise operates business lines not regulated by Vietnamese law, is the business registration with this sector entitled to be implemented?
Pursuant to Clause 1, Article 7 of Decree 01/2021/ND-CP on business lines:
- When registering to establish a business, notifying supplements or changes of business lines, or applying for converting into the Enterprise Registration Certificate, owners or enterprises shall select the level-4 economic business lines in Vietnam standard industrial classification to write them on the Enterprise Registration Certificate.
According to the aforementioned provisions, business lines that are not regulated by Vietnamese law, meaning those not included in the Vietnam standard industrial classification, shall not be registered.
However, Vietnamese law allows enterprises to freely conduct business in industries not prohibited by the law stipulated in Clause 1, Article 7 of the Law on Enterprise 2020. Therefore, if the enterprise registers to operate business lines not banned by law, it is still allowed to do business.
4.2. When registering business lines, is it sufficient to register only a main business line?
Pursuant to Clause 1, Article 7 of the Law on Enterprises 2020, enterprises have the right to freely conduct business in industries not prohibited by law." There is currently no requirement to register additional business lines beyond the main one.
Therefore, when registering business lines, it is sufficient to register only the main one.
However, to facilitate operations and save costs in case of changing business lines in the future, enterprises can choose to register additional business lines related to their business activities.
V. Legal consulting services on the registration of business lines
Above are all the details that NPLaw provides to assist you in the matter of business registration. You can contact NPLaw for legal advice and additional explanation on this issue.
Please contact us via the following information.
