To do business in the Vietnam market, you are required to register with local authorities and a company will be legal with a business license issued. However, company incorporation entails more than that to be able to operate officially, from engraving Company seal, to first tax declaration, and to opening a business bank account. Let’s find out in this article!
1. Buy USB digital signature token
Digital signatures are now a mandatory requirement for businesses due to the electronic tax declaration policies enforced by tax authorities. They play a crucial role in facilitating online processes such as tax and customs declarations, social insurance submissions, electronic banking transactions, and interactions with other administrative agencies.
Besides, a signature token is a need for enterprises to submit license fee declarations and tax reports on the website of the General Department of Taxation.
2. Open Business Bank account
Currently, the enforceable law stipulates that invoices for which the value is 20 million VND or higher must be paid via a non-cash payment method. Furthermore, a business bank account will allow companies to pay taxes electronically, satisfying a mandatory requirement to declare taxes online of the authorities.
Following the establishment of a bank account, businesses proceed to register for electronic tax payments and inform the direct tax authority of the bank account number.
3. Put up the name of enterprise
According to Article 34 of Law on Advertising in Vietnam 2012, signboards of organizations and individuals doing business and production must include:
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1. The signboard must include the following contents: a) The name of the direct line agency (if any); b) The name of the production facility or the business establishment consistent with the Certificate of business registration; c) The address and phone number. 2. The text on the signboard must comply with Article 18 of this Law. 3. The signboard sizes are specified as follows: a) For horizontal signboards, the maximum height is 02 meters (m), the length must not exceed the width of the house front; b) For vertical signboards, the maximum width is 01 meter (m), the maximum height is 04 meters (m) but must not exceed the height of the floor where the signboard is located. 4. The signboard must not block the emergency exit and firefighting space, must not violate the pavement, the road or affect the public traffic. 5. The signboard location must comply with this Law and the technical regulations promulgated by competent agencies. |
Failure to put up the enterprise’s name at its head office, or failure to put up the name of a branch, representative office or business location at its location, is an administrative violence against regulations on planning and investment.
The fine for this violence will be from VND 30 million to VND 50 million (Point c, Clause 2, Article 52 of Decree 122/2021/ND-CP) or your company’s tax code can be locked.
4. First tax declaration and licensing fees payment
4.1. First tax declaration
First tax declaration is a crucial procedure for a new business after its establishment. Within 10 days from the date of issuance of the business license, businesses need to declare their first tax duties, or they may be subject to a warning or fine from VND 2 million to VND 25 million.
First tax declaration dossiers include:
Declaration for registration of accounting and use of invoices
Fixed asset depreciation method registration table
Decision to appoint an accountant
Decision on appointment of director
License fee declaration (depending on the district)
Business registration form (depending on the district)
Certificate of business registration, attestation paper of legal representative (notarized copy true to the original)
Power of attorney (in case of authorization for an individual to submit the application).
4.2. Licensing tax declaration
According to Article 8 of Decree 126/2020/ND-CP, the deadline for submitting the licensing fees declaration in Vietnam for new enterprises (excluding household and individual businesses, as well as medium and small enterprises transformed from household businesses) and existing businesses creating new dependent units or business locations is by January 30 of the following year of the establishment or commencement of production and business activities.
If there is a change in capital during the year, the entity responsible for the licensing fee must submit the declaration by January 30 of the following year, corresponding to the year in which the change occurred.
The fine ranges from VND 2 million to VND 25 million if businesses fail to fulfill their licensing tax declaration duties.
5. Register electronic invoices
According to the Law on Tax Administration 38/2019/QH14, businesses are required to adopt electronic invoices. Penalties for failing to notify the issuance of electronic invoices vary from VND 6 million to VND 18 million, in accordance with Clause 3, Article 23 of Decree 125/2020/ND-CP.
At the moment, the process of registering to use electronic invoices is simple and quick: within 01 working day from the date of receiving registration to use e-invoices, the tax authority is responsible for sending an electronic notification according to Form No. 01/TB-DKD for businesses on accepting or not accepting registration to use e-invoices.
6. Other procedures
Businesses can reach out to us for the most detailed advice case by case. Another duty of enterprises can be employee social insurance.
According to Decision 772/QD-BHXH, within 30 days from the date of signing the official labor contract with the employee, the enterprise must submit an insurance application for the employee.
Document components include:
Form TK3-TS and form D02-LT declared by the company;
Form TK1-TS declared by the employee;
Copy of the company's Business Registration;
Company-employee labor contract signed and stamped by the company.
