The procedures related to add business activities are of great interest to many businesses, as many companies undergo changes in their business direction after starting operations. So, what are the regulations for add business activities in 2024? Please refer to the following article from Viet My Accounting to learn the latest and most detailed regulations on the procedures and documents required for add business activities.

1. Concept of Adding Business Activities

Add business activities is a procedure that businesses must carry out at the Department of Planning and Investment. This is one of the procedures that many businesses are interested in due to the demand for expanding business operations by adding new or additional business activities. When a business adds a new activity, the content on the business registration certificate will also be updated and reissued.

It can be seen that after a business has registered, it may realize new business directions once it starts operations. Additionally, the current business activities may not be able to grow, prompting the company to proactively add new business activities to the business registration certificate in order to legally operate.

2. When Should Business Activities Be Added?

So, based on the above concept, when should businesses add new activities? The answer is when a business wants to expand its business direction.

As we know, business operations require many factors to be effective, and each business has its own strengths. These strengths are often linked to the relationships surrounding the business owner. When these relationships lean toward a new business direction, the company has an opportunity to develop that industry further. Therefore, choosing to add business activities is a great way for businesses to evolve and grow.

3. Latest Regulations on Add Business Activities

3.1. Documents for Add Business Activities

The documents required to add business activities will vary depending on the type of business. Here are the necessary documents:

• A decision to add business activities by the owner for a one-member limited liability company or meeting minutes and a decision from the general shareholders’ meeting or the members’ council for joint-stock companies, or multi-member limited liability companies.

The decision or meeting minutes should include details such as: the business activities that need to be re-coded (if any), the new business activities to be added, amendments to the company’s charter, etc.

• One notification of business registration changes in accordance with the form provided by Circular No. 20/2015 from the Ministry of Planning and Investment, dated December 1, 2015. The content of the notification should be similar to the decision and meeting minutes but should also include a list of the business activities of the company after the change (it is recommended to list all business activities, both old and new).
• A power of attorney and a photocopy of the ID card of the authorized representative (if the representative is not submitting the documents directly to the state authority).

In addition, to add business activities, the business must meet the following conditions:

• The business must have registered a contact phone number with the state authorities;
• The registered business activities must comply with the national economic sector system;
• The business must have complete registration information on the national business registration system;
• The business must have legal business registration documents;
• The business must have paid the required registration fees as stipulated by law.

For foreign-invested companies, additional conditions include:

• The investment activities must align with industries that the company is allowed to operate in, in accordance with the laws governing conditional business activities and sectors with restricted market access under the Investment Law and relevant specialized laws;
• Investors are responsible for deciding and taking responsibility for the added business activities based on relevant laws.

Excluding industries listed in the restricted market access list for foreign investors under Decree 31/2021 of the Government, foreign investors have the same access to the market as domestic investors.

Foreign investors are not allowed to invest in sectors that are not open to the market as stipulated by Decree 31/2021/NĐ-CP.

For sectors with conditional market access, foreign investors must meet the market access conditions as outlined in Section B, Appendix I of Decree 31/2021 of the Government.

3.2. Procedures for Adding Business Activities Documents

To complete the procedure for adding business activities, businesses need to follow these steps:

Step 1: Prepare the documents for adding business activities according to the specific business type

The necessary documents to be prepared are outlined in the section above by Viet My Accounting.

Step 2: Submit the documents

There are three ways to submit the documents: directly at the Business Registration Office of the Department of Planning and Investment where the business is located, by postal service to the designated location, or through the national online business registration portal.

Note, businesses should check whether the local Department of Planning and Investment accepts direct or online submissions to expedite the process. Many authorities now only accept online submissions for quicker processing, especially in major cities. Submitting online also saves businesses time and travel costs.

At the time of submission, there is no requirement to submit professional certificates for businesses in regulated industries. However, businesses will need to provide relevant certificates once operations begin, as required by law.

Step 3: Process the documents

The Business Registration Office at the Department of Planning and Investment will review the documents for completeness and accuracy. Businesses submitting documents through the national online portal will receive a notification about the validity of their submission and may be required to submit a hard copy within the prescribed time.

If the documents are valid, the process of changing and adding business activities will proceed. If the documents are not valid, the business will need to revise and resubmit the documents for re-evaluation.

Step 4: Receive the result

After the submission, businesses will receive the result at the Business Registration Office or by mail on the date specified in the notification.

4. Important Notes When Adding Business Activities

When performing the procedure for adding business activities, businesses must pay attention to the following points:

First: Re-code business activities according to the new decision:

According to Decision 27/2018 by the Prime Minister, which was issued on July 6, 2018, the Vietnam Economic Sector System was updated, with certain industries being removed or modified. Therefore, when a business carries out any procedures related to its business activities, it must follow the new coding system as outlined in the decision (except for businesses established after August 1, 2018, which have already implemented the re-coding).

In the registration system, there will be a list of newly coded industries. Red highlights indicate business activities that have been deleted under Decision 27/2018, while green indicates activities that have been modified. Businesses need to find new industry codes for activities that have been deleted or adjust descriptions for activities that have been updated.

Second: Update tax registration information according to the latest regulations:

Currently, under Circular No. 02/2019 issued by the Ministry of Planning and Investment, effective from March 11, 2019, all businesses are required to update their tax registration information whenever submitting any documents for changes or additions. This includes updating the Chief Accountant’s information and the business’s tax calculation method.

Note: This procedure applies to all businesses across the country, so companies in any province or city must follow the same procedure when adding business activities.

Third: For businesses wishing to add more detailed business activities, such as Level 4 industry codes:

Businesses can choose a Level 4 economic sector from the Vietnamese economic sector system and specify the details of their business activities under that Level 4 category. However, the detailed business activity must be in line with the chosen sector.

Fourth: When adding activities in regulated or conditional business sectors:

If the added activities belong to a regulated industry or require professional certification, businesses must meet those conditions and provide the necessary certificates either before or after starting operations.

For example, businesses in the food safety sector must obtain food safety certificates and certification for safe production processes. Similarly, in industries like healthcare, businesses need to employ individuals with specific qualifications to operate legally.

In summary, when adding business activities, businesses must comply with all legal requirements and conditions set by the government. Additionally, businesses should ensure they have a solid foundation for the new activities to develop and operate successfully.

Above are key points regarding the regulations for add business activities. For any questions about adding new business activities, feel free to contact Viet My Law and Accounting. You can also reach out if you wish to hire a service provider to handle the procedures on your behalf.

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