Business License and Permits in Vietnam in 2023
Entrepreneurs considering engaging in any business operations or forming a company in Vietnam must obtain a business license to operate their business legally in the nation. Business licenses and permits in Vietnam are official documentation that the government provides giving people or organizations the authorization to conduct particular commercial operations.
There are several forms of business license and permits in Vietnam that you can apply for based on the nature of your company’s operations and the sector you are involved in. Having a business license in Vietnam helps to boost a company’s credibility and trust by ensuring that it complies with all applicable rules and regulations.
Through this article, we will be exploring the various forms of business license in Vietnam and will further go through how to apply for a business license there.
Types of Business Licences and Permits in Vietnam
To lawfully engage in a particular sector or operate a business in Vietnam, it is crucial to have a business license in Vietnam. The license is given out by pertinent government organizations and is an essential part of regulatory management. The particular licenses needed may vary depending on the type of business operations.
Here are the various forms of business licenses and permits in Vietnam:
- Investment Registration Certificate (IRC): An IRC is necessary for overseas investors or for those who intend to engage in industries like infrastructure, schooling, medical services, or property management.
- Enterprise Registration Certificate (ERC): An ERC is necessary for businesses and organizations that conduct business in Vietnam.
- Industry-specific licenses and permits: You might require licenses and permissions that are particular to the sector you work in according to the type of organization that you operate.
- Business Cooperation: Business Cooperation is a special kind of business license created to entice international investors to make significant investments in big-scale undertakings in Vietnam. Such forms of business license and permits in Vietnam remains in effect for 50 years after it has been provided.
- Overseas Branch License: Every overseas enterprise that conducts commerce in Vietnam in the form of a branch office must obtain a license from the appropriate administration.
- Representative office: Many foreign businesses may desire to establish offices in Vietnam, but they won’t take part in any deals or operations that would generate income there directly. You will require a representative license for such businesses.
Procedure for Acquiring a business license in Vietnam
Here is the process that must be followed to acquire the business license and permits in Vietnam:
Research the form of business license and permits in Vietnam
Based on the nature of your organization, area, and sector, several licenses and permits in Vietnam can be necessary. Before submitting your application for business licenses and permits in Vietnam, it is crucial to perform your research on the particular criteria for your business operations. This entails comprehending the rules, getting the required paperwork ready, and making sure local laws are followed.
Collect necessary documentation
Gather the required paperwork for the application for a business license in Vietnam, containing the organization’s name, address, and kind of activities in addition to any additional pertinent paperwork like an incorporation certificate.
Submit the documentation
Send the requested information and documents, together with the application for the requisite licenses and certificates, to the appropriate government body.
Make the necessary payments
The majority of business licenses and permits in Vietnam have fees associated with them that need to be given for the request to be approved.
Review of the application
After receiving the application and the necessary documentation, the government body will analyze the contents for accuracy and integrity.
Application approval
The government organization will grant the required business license and permits in Vietnam if the request is accepted.
How to acquire a Branch License in Vietnam?
Every international corporation must obtain a license from the appropriate authorities to conduct business in the form of a branch in Vietnam.
Requirements for a branch license
A branch license application must include the following:
- A certified duplicate of the business’s incorporation documents,
- A record describing the Vietnam branch’s operations,
- Details of the branch representative in Vietnam,
- The location of the branch office in Vietnam and the total amount of international employees there.
Upon 15 days of applying, a branch license will be issued if the following criteria are fulfilled:
- The overseas corporation was legitimately founded.
- The international organization has been operating for over five years.
- The branch’s proposed business ventures are those that are identified as legally permitted.
How to acquire a Representative Office License in Vietnam?
- A foreign business can apply to the formation of a representative office if it opens an office in Vietnam but does not conduct any operations there or engage in any transactions that generate earnings there directly.
- A certified copy of the organization’s certificate of incorporation, its representative’s identity and place of residence in Vietnam, and the request for the creation of a representative office must all be included in the application.
- Following 15 days of receiving the request, the license to open the representative office is going to be issued.
Advantages of Obtaining the Business License and Permits in Vietnam
In Vietnam, having the appropriate business licenses and authorizations offers several benefits, including those listed below.
- Adherence to the law and protection: Adherence to Vietnamese rules and legislation is ensured when operations are conducted with the required licenses and permissions. This shields your company from penalties, legal repercussions, and even possible closure.
- Increases credibility: Possessing the necessary licenses and permits improves your credibility and fosters trust with clients, collaborators, and vendors. It conveys that your company adheres to ethical standards and operates within the law.
- Development Possibilities: Your company can expand its activities and look into expansion potential with the appropriate licenses and permissions.
Conclusion
If you are someone who is looking to enter the markets of Vietnam and start a business there or engage in any business activities, you need to obtain a business license in Vietnam. The business license in Vietnam serves as a legal instrument that ensures that you operate your business by Vietnamese rules. There are various sorts of business licenses and permits in Vietnam based on your company’s sector and the nature of your business.
With our team of expert professionals, we bring a wealth of experience to assist you in selecting the right license for your business. We provide thorough assistance in completing your license application, guaranteeing its accuracy and lowering the likelihood of rejection.
Stay up-to-date with the latest industry insights by following our Instagram profile at Odint Consultancy or visiting our website at ondemandint.com.
FAQ’s
Yes, to lawfully run a business in Vietnam, the relevant licenses and permits must be obtained.
In Vietnam, doing business without the appropriate licenses and permits can result in legal consequences, penalties, or the dissolution of your company.
You must adhere to the steps outlined below to obtain a business license in Vietnam:
- You must first decide which kind of license you want to get.
- Following that, you must assemble the paperwork needed to apply for a business license.
- The application must be completed and sent to the appropriate authority together with the necessary paperwork.
- You make the necessary payment.
- Your documents and application will be examined, and if approved, you will receive the license.
- Having the required licenses and permits enhances your reputation and builds trust with consumers, business associates, and vendors.
- When operations are carried out with the necessary licenses and approvals, compliance with Vietnamese laws and regulations is ensured.
CEIDG is a business book of entries with info on self-employed entrepreneurs. Any sole trader must register in CEIDG.
