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What is a business license ? Business license application dossiers and process [2024]
In the fields in which the enterprise operates, it is required to obtain a business license from specialized authorities to be granted an enterprise establishment certificate. Therefore, enterprises must apply for licenses in a specific field to be able to organize and operate. In this article, Siglaw would analyze what a business license is? Dossiers and procedures to apply for the latest business license in 2024:
What is a business license ?
Business license is a type of paper issued to enterprises with conditional business lines, this type of paper is usually issued after the Certificate of business license.
The Certificate of Business Eligibility is also known as the “Sublicense”, however, according to the current law, there is no specific definition of the Certificate of Business Eligibility.
It can be understood that a business eligibility certificate is a legal document that a competent agency issues to organizations and individuals certifying that they are eligible to do business when they do business in conditional industries. When doing business in these lines, enterprises need to satisfy for themselves the provisions of the law on business lines prescribed by the Vietnamese State for reasons of national defense, security, social order and safety, social ethics, health of the community, etc.
A conditional business license is also for the purpose of restricting business to certain industries, trades and fields. The fields of state management stipulating most types of licenses namely: Industry and Trade, Transportation, Agriculture, Information and Communications.
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Features of business licenses
Business licenses issued by competent agencies to organizations conducting business activities in conditional fields. Depending on the field, the issuing agency will be different and issued after the business license certificate;
It is a mandatory document for enterprises doing conditional business in lines and trades;
Business licenses help enterprises operate legally in a specific industry or profession that Vietnamese law requires conditions for that industry or trade. This can also be considered as a form of the State restricting business in some business activities of enterprises
For each different industry or profession, the conditions and regulations to be granted a business license will also be different;
Normally, most business licenses have an expiry date, enterprises are required to carry out renewal or new procedures to be able to continue business operations.
Contents of the business license
The content of the business license will depend on the business line and the type of paper that the enterprise intends to apply for permission. Typically, a business license includes the following:
- Business name includes full name and abbreviated name, foreign name
- Enterprise code is also an import-export code
- Address of head office and legal representative;
- Business Lines
- Scope of business activities;
- Certificate of business eligibility;
- The term of the license includes the date of issue
- Other updated information.
Dossier of application for a business license
– Application for a Business License (According to the form)
– An explanation of the contents including:
+ Explanation of conditions for issuance of corresponding business licenses
+ Business plan: Description of contents and methods of conducting business activities; presentation of a business plan and market development; demand for labor; assessment of impacts and socio-economic efficiency of business plans;
+ Financial plan: Report on business results on the basis of audited financial statements of the latest year in case it has been established in Vietnam for 01 year or more; explanation of capital, capital sources and capital mobilization plans; enclose documents on finances;
+ Business situation of goods purchase and sale activities and activities directly related to goods purchase and sale; financial situation of a foreign-invested economic organization as of the time of application for a business license, in case of granting a business license to an economic organization having retail establishments in Vietnam.
– Documents of tax authorities proving that there are no overdue tax debts
– Copy of: an Enterprise registration certificate (ERC); Investment registration certificate (IRC) of the project of goods purchase and sale activities and activities directly related to goods purchase and sale (if any);
Form of submission: Applications can be submitted in person or by post or online (if eligible) to the Licensing Authority – Department of Planning and Investment of the province or city where the enterprise’s headquarters is placed.
Some notes when applying for a Business License (“Sublicense”)
– To apply for a business license, enterprises need to ensure that they meet the correct and qualified conditions for their industry during their operation (conditions on facilities, qualifications, personnel …). In addition, enterprises also need an Enterprise registration certificate (ERC) before applying for a sublicense.
– Lines of business license not in the prohibited fields.
– Having a valid business license dossier as prescribed by law
– Pay all business license fees as prescribed by law
Penalties when enterprises operate without business licenses
- For business households: A fine from VND 5,000,000 to VND 10,000,000 in cases where they are forced to apply for a business license but fail to do so;
- For enterprises: a fine from VND 50,000,000 to VND 100,000,000 for the act of conducting business in the form of an enterprise without registering to be granted a business license;
Please contact Siglaw Law Firm for the best advice:
Head office in Hanoi: 12A floor, Sao Mai Building, No. 19 Le Van Luong Street, Nhan Chinh Ward, Thanh Xuan District, Hanoi City.
Email: vphn@siglaw.com.vn
Southern branch: No. 99 Cong Hoa, Ward 04, Tan Binh District, Ho Chi Minh City.
Central Branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
Email: vphcm@siglaw.com.vn
Hotline: 0961 366 238
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