Business Registration License: A Legal Guide for Businesses in Vietnam

A business registration license is a crucial and obligatory document for any business or individual seeking to operate within the legal framework. Hence, it is essential to understand what exactly a business registration license entails and the prerequisites for obtaining one. In order to shed light on these inquiries, the following article by NT INTERNATIONAL LAW FIRM will provide you with comprehensive answers.

What is a business registration license?

In Vietnam, a Business Registration License (GPKD) is a crucial document required for businesses operating in specific industries deemed “conditional.” It differs from the Business Registration Certificate (BRC), which is issued upon registration and allows businesses to operate in most non-conditional sectors.

What is a business registration license?

Legal Basis:

Several legal documents govern the issuance and use of Business Registration Licenses:

• Law on Enterprises 2020: Article 8 states that businesses must fulfill all business conditions for conditional industries, as defined by the Law on Investment and Insurance.
• Decree 09/2018/ND-CP: Regulates the issuance of Business Licenses to foreign-invested economic organizations.

Who Needs a Business Registration License?

Who Needs a Business Registration License:

• Domestic businesses: Organizations operating in conditional industries must meet specific requirements and obtain a license before commencing operations.
• Foreign-invested organizations: Certain business activities, including retail distribution and e-commerce, require a license for foreign entities.

Types of Conditional Businesses:

Several business lines require a Business Registration License, including:

• Food and beverage: Restaurants, cafes, and other food businesses need a certificate of compliance with food safety regulations.
• Alcohol: Businesses selling beer and wine require a specific license.
• Professional services: Law firms and notary offices need licenses related to practicing certificates.
• Other: Depending on the industry, various requirements like legal capital or insurance certificates may apply.

Types of Conditional Businesses

Issuance Process:

The process for obtaining a Business Registration License depends on the subject requesting it and the specific industry. Typically, it involves submitting an application, meeting specific requirements, and paying associated fees.

Requirements for Domestic Businesses:

• Infrastructure conditions: Meeting specific standards for the industry, like food safety regulations.
• Practicing certificates: For professions like lawyers and notaries.
• Legal capital: Minimum capital requirements vary depending on the industry.

Requirements for Domestic Businesses

Requirements for Foreign-Invested Businesses:

• Compliance with market access conditions in international treaties.
• Financial plan demonstrating the ability to operate the business.
• No outstanding tax debts in Vietnam.
• Meeting specialized legal regulations for the industry.

Requirements for Foreign-Invested Businesses

Additional Considerations:

• Businesses should ensure their license is accurate and up-to-date to avoid penalties and delays.
• Individuals applying for a Business Registration License should provide accurate information to facilitate efficient processing.
• Businesses must maintain all necessary conditions throughout their operations to comply with licensing requirements.

Content of the Business Registration License

Content of the Business Registration License:

The license typically includes:

• Business name, code, and head office address.
• Legal representative information.
• Products, services, or goods permitted for trading.
• Scope of business activities authorized.
• Certificate of business eligibility.
• License validity period.
• Other relevant information related to the business.

NT International Law is Here to Help:

NT International Law Firm has addressed the question of what business licenses are. 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 2020 Law On Enterprises in English