What to know about business establishment in 2020

by Vietnam Credit VietnamCredit - Business Information and Rating Co
The business establishment is the first important step in starting a startup. It is different from other administrative processes, and it requires people to perform careful research before starting.
What to know about business establishment in 2020

Therefore, the lack of necessary knowledge is an advantage for future business owners in their process of development. In order to provide assistance, here are some factors that new business owners must pay attention to.

The new legal framework for companies established in 2020:

Good news for the business community is that the LAW TO SUPPORT SMALL AND MEDIUM ENTERPRISES has taken effect on 1st January 2018. In order to be considered a small or medium enterprise, one must fulfill the following conditions: having a capital of less than 100 billion VND, a workforce of fewer than 200 employees, and a revenue of less than 300 billion VND. Thus, with the aforementioned conditions, the majority of startup businesses are small and medium enterprises.

The license fees for startups, applied from 2017

The Fees and Charges law has taken effect since 1st January 2017. Accordingly, Decree 139/2016 / ND-CP provides guidance on the LICENSE FEES in lieu of the previous LICENSE TAX: Organizations with a charter capital or investment capital of more than 10 billion VND will pay a license fee of 3 million VND/year; Organizations with a charter capital or investment capital of less than 10 billion VND will pay a license fee of 2 million VND/year; Branches, representative offices, business locations, non-business units, and other economic organizations will pay a license fee of 1,000,000 VND / year.

The regulations regarding the company's seal applied from 1st July 2015.

The Enterprise Law 2014 was established and came into effect on July 1, 2015, regulating many progressive issues in The State administrative management of enterprises, one of which is about the seal of the company. Accordingly, an enterprise has the right to decide on the creation and usage of the seal, as well as to have multiple seals with self-picked shapes, sizes, and colors.

What to know about business establishment in 2020

The bill of the added value of the company

When a company is established, the bill of added value should also be a prioritized issue. How to register to use the bill of added value to choose a tax calculation method based on the deduction measure was a problem troubling accountants everywhere. However, at the moment, they no longer have to be concerned about this issue, as on 19th September 2017, the Ministry of Finance issued the adjusted Circular No. 93/2017 / TT-BTC, adding Clause 3 and Clause 4 Article 12 of the Circular No. 219/2013 / TT-BTC dated 31st December 2013. Accordingly, enterprises no longer have to submit the 06/GTGT to register for the VAT method.

Registration of business in any industry except the banned ones.

Before 1st July 2015, when registering for the establishment of enterprises working in conditional industries, enterprises must meet the business conditions, including the requirement of practicing certificates and legal capital. At the moment, in accordance with the Enterprise Law and Decree 78/2015 / ND-CP, when establishing businesses, members/shareholders only need to provide certified copies of ID card or passport or citizen identity card. Thus, for 243 conditional industries, enterprises do not have to proofs when they choose to establish their operation.

>> Industrial Classification: History of Establishment and Concordance among International and Vietnamese Industrial Classification Systems. 

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Created on May 4th 2020 00:04. Viewed 422 times.


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