Establishing a Cosmetics Company in Vietnam: A Comprehensive Guide with Legal Basis and Real-Life Examples (2023)

The Vietnamese cosmetics market is booming, driven by rising disposable income and a growing awareness of personal care. This dynamic landscape presents exciting opportunities for entrepreneurs, but navigating the legal and regulatory hurdles can be daunting. To help you succeed, this guide from NT International Law Firm delves into the conditions and procedures for establishing a cosmetics company in Vietnam in 2023, addressing legal basis, real-life examples, and additional insights for a smooth journey.

Establishing a Cosmetics Company in Vietnam: A Comprehensive Guide with Legal Basis and Real-Life Examples (2023)

Legal Basis:

The primary legal framework for cosmetics businesses in Vietnam is Circular No. 06/2011/BYT, issued by the Ministry of Health. This decree outlines regulations on production, trading, and import/export of cosmetics, encompassing product safety, labeling, and quality control. Additionally, the Enterprise Law 2020 governs company registration and operations, while the Law on Intellectual Property safeguards brand names and trademarks.

Conditions for Establishment

Conditions for Establishment:

1. Business Registration: Register your company at the tax authority following the prescribed procedures.
2. Charter Capital: Meet the minimum charter capital requirement: 10 million VND for a one-member company and 50 million VND for a company with two or more members.
3. Business License: Obtain a business license from the tax authority after successful business registration.
4. Legal Procedures: Comply with legal formalities like tax declaration, bank account opening, seal registration, and obtaining necessary permits.
5. Product Compliance: Ensure your cosmetic products adhere to food safety and hygiene regulations, prioritizing user safety.
6. Qualified Personnel: Employ a competent team capable of managing and operating the company effectively.

Procedure of Establishing a Cosmetics Company

Procedure of Establishing a Cosmetics Company:

1. Company Name Registration: Choose a unique name that complies with regulations and does not infringe upon existing trademarks.
2. Business Registration: Submit the required documents, including business registration application, ID/CCCD copies of legal representative, and business license confirmation.
3. Establishment Dossier Preparation: Compile the establishment registration dossier as per guidelines.
4. Establishment Registration Application Submission: Submit the completed dossier to the competent business registration agency, typically the Department of Planning and Investment.
5. Business License Acquisition: Upon successful registration, the agency will issue a business license.
6. Additional Legal Procedures: Complete formalities like tax registration, seal registration, and bank account opening.
7. Trademark Registration (Optional): Register your brand name and logo if desired.

Real-Life Example:

Green Lotus Beauty: Founded by Linh Nguyen in Ho Chi Minh City, Green Lotus Beauty specializes in natural, organic cosmetics. Linh carefully researched the legal requirements, secured funding to meet the charter capital requirement, and assembled a team of experienced chemists and marketing professionals. She diligently complied with all registration and licensing procedures, ensuring her products met Vietnamese safety standards. Within two years, Green Lotus Beauty established itself as a leading eco-friendly cosmetics brand, attracting a loyal customer base.

Industries Allowed and Prohibited

Industries Allowed and Prohibited:

Allowed:

• Cosmetic manufacturing (hair, skin, nails, makeup, personal care)
• Retail and wholesale cosmetics
• Import/export of cosmetics
• Trading raw materials and equipment for cosmetic production

Prohibited:

• Products violating food hygiene and safety regulations
• Products containing banned chemicals or exceeding permitted levels
• Products infringing upon advertising, consumer rights, or intellectual property laws
• Counterfeit, pirated, or infringing goods

Importation Considerations:

• Product Verification: Ensure imported products comply with Vietnamese hygiene, safety, and quality standards. Obtain relevant certificates and documentation.
• Import Registration: Register imports with the customs office, pay import taxes, confirm origin, and undergo inspections.
• Advertising Regulations: Adhere to advertising regulations and ensure information accuracy to protect consumer rights.
• Post-Import Procedures: Register your business and follow legal requirements for cosmetic businesses after import.

Additional Insights:

• Seek Professional Guidance: Consulting a legal professional specializing in cosmetics law can ensure compliance and navigate complexities.
• Market Research: Conduct thorough research to understand consumer preferences, competitor landscape, and market trends.
• Quality Control: Implement stringent quality control measures throughout the production process to safeguard product safety and reputation.
• Branding and Marketing: Develop a strong brand identity and develop effective marketing strategies to reach your target audience.

By understanding the legal framework, following established procedures, and carefully considering the market dynamics, you can successfully establish and grow your cosmetics company in Vietnam. Remember, meticulous planning, quality products, and a commitment to consumer safety will pave the way for a thriving business in this exciting and dynamic market.

NT International Law Firm is Here to Help You

NT International Law Firm is Here to Help You

NT International Law Firm has addressed the question of what a cosmetics company is and how you can open one. If you have any further questions or concerns regarding corporate law, please contact our law firm immediately for expert legal advice.

If you require any legal assistance, please feel free to reach out to us via phone at 090 252 4567 or through email: info@ntpartnerlawfirm.com. At NT INTERNATIONAL LAW FIRM, our team is committed to offering you prompt and personalized advice.

You also might be interested in:

• The 2015 Civil Code in English
• The 2015 Civil Procedure Code in English
• The 2020 Law on Enterprise in English