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What is a business license? Business license registration documents & procedures [2024]
In the fields in which enterprises operate, a business license from a specialized authority is required to be granted an Enterprise Registration Certificate. Therefore, enterprises must apply for an additional Business License for that industry before they can start operating. In this article, we invite you to join Siglaw to learn what a business license is? Documents and procedures to apply for the latest 2024 Business License:
What is a business license?
A business license is a type of license issued to businesses that conduct business in conditional industries. This type of license is usually issued after the Enterprise Registration Certificate.
A business eligibility certificate is also known as a “sub-license”, however, according to current legal regulations, there is no specific definition of a business eligibility certificate.
It can be understood that a business eligibility certificate is a legal document issued by a competent authority to an organization or individual certifying that they are qualified to do business when they conduct business in a conditional industry. When doing business in these industries, businesses need to comply with the legal regulations on business industries that the Vietnamese government has prescribed for that industry for reasons of national defense, national security, social order and safety, social ethics, and community health.
Conditional business licenses also aim to restrict business to certain industries, occupations, and fields. State management fields that regulate many types of licenses are: Industry and Trade, Transportation, Agriculture, Information and Communications.
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Characteristics of a business license
A business license is issued by a competent authority to an organization conducting business activities in a conditional field. Depending on the field, the issuing authority will be different and will be issued after the business registration certificate;
A mandatory document for businesses operating in conditional industries and professions;
A business license helps businesses operate legally in a specific industry or profession that Vietnamese law requires conditions for. This can also be considered a form of State restrictions on business activities of businesses
For each different industry or profession, the conditions and regulations for being granted a business license will also be different;
Usually, most business licenses have an expiration date, and businesses are required to renew or reissue them in order to continue operating.
Contents of a business license
The content of a business license will depend on the business line and the type of license that the business intends to apply for. Normally, a business license includes the following contents:
- Business name including full name and abbreviation, foreign name
- Business code which is also import-export code
- Address of head office and legal representative;
- Business line
- Scope of business activities;
- Certificate of eligibility to do business;
- Duration of the license including date of issue
- Other contents are updated
Application for Business License
- Application for Business License (According to the form)
- Explanation of the contents including:
+ Explanation of the conditions for granting the corresponding Business License
+ Business plan: Description of the content and method of implementing business activities; presentation of business plan and market development; labor demand; assessment of the economic and social impact and efficiency of the business plan;
+ Financial plan: Report on business performance based on the audited financial statements of the most recent year in case of establishment in Vietnam for 01 year or more; explanation of capital, capital sources and capital mobilization plan; accompanied by financial documents;
+ Business situation of goods trading activities and activities directly related to goods trading; financial situation of the foreign-invested economic organization up to the time of requesting the issuance of a Business License, in case of granting a Business License to an Economic Organization with a retail establishment in Vietnam.
- Documents from the tax authority proving that there are no overdue tax debts
- Copies of: Business registration certificate; Investment registration certificate for the project of trading in goods and activities directly related to trading in goods (if any)
Submission method: The application can be submitted directly or by post or online (if applicable) to the competent licensing authority – the Department of Planning and Investment of the province or city where the enterprise has its head office.
Some notes when applying for a Business Registration Certificate
- To apply for a business license, the enterprise must ensure that it meets the correct and sufficient conditions for that industry throughout its operation (conditions on facilities, qualifications, personnel, etc.). In addition, the enterprise must also have a business registration certificate before applying for a sub-license.
- The industry or profession registered for business is not in a prohibited business area
- Has a valid business registration dossier according to the provisions of law
- Pays the full business registration fee according to the provisions of law
Penalties for businesses operating without a business license
- For business households: Fines from VND 5,000,000 to VND 10,000,000 in cases where a business household is required to apply for a business license but does not do so;
- For enterprises: fines from VND 50,000,000 to VND 100,000,000 for conducting business activities in the form of an enterprise without registering to obtain a business license;
Please contact Siglaw Law Firm for the best advice:
Phone: (+84) 961 366 238
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- vphn@siglaw.com.vn
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