It is estimated that tens of thousands of new businesses are established each year in Vietnam. The need to learn about business establishment procedures is very large for those who have not been exposed to this procedure. In the article below, Viet My will guide you through the company establishment procedure guide for each type of business. In addition, we provide company establishment services nationwide to help you

1. Advantages and disadvantages of establishing a company and establishing a business household

The question for traders is which type of business to choose based on the actual situation? Will investors choose to establish a private enterprise or start a business? Viet My lawyers advise on the advantages and disadvantages so that you can choose the most optimal type of business.

• Legal status: Individual business households and private enterprises do not have legal status, corporations have legal status and are only liable within the scope of their capital contribution. Meanwhile, individual business households are civilly liable for business activities with their assets.
• Issuing invoices: Companies are allowed to issue and issue deducted value-added tax (VAT) invoices, while professional households are not, this can be considered a great advantage when establishing a new business.
• Tax accounting reports: Many entrepreneurs think that when establishing a business, they will encounter many difficulties in fulfilling tax obligations for the business. However, currently there are many tax enterprises and accounting service companies.
• Small and medium-sized enterprises can choose a full package of tax accounting services, businesses do not have to hire personnel related to tax accounting, saving a lot of costs and optimally solving problems for jobs related to corporate taxes such as tax reporting, accounting and finance.
• Fixed fee: Enterprises are not subject to income tax like family businesses, so even if the enterprise has a lot of income but has not made a profit, it does not have to pay taxes. Household businesses with income (even if they have not made a profit) still have to pay taxes according to the standard.
• Tax: Enterprises are a type of contractor tax, an indirect tax, so when an enterprise exports, VAT is a tax collected from customers and then paid back to the state, not a tax that non-trading enterprises owe. Note:
  When issuing production invoices, the company must have a corresponding input invoice;
• Opening a business: Establishing a business is quite easy, the establishment cost is also quite low, but operating and managing a business requires many factors or when having to close the business, it also costs a lot of money and time. need to think carefully before establishing a business;
• Payment needs: If your customers are individuals, the need to issue value-added invoices is not high, you should consider establishing a business.
• Company members: When a business is newly established, the most important thing is for the business to have customers and income, so it requires the consensus and efforts of the members and shareholders of the business so that the business can start operating soon…

The advantages and disadvantages of each type of business should be carefully considered. Consult, especially the advice of a business lawyer. Then, make a decision that suits your company’s financial and business management capabilities.

2. Is it difficult to establish a company?

Starting a business with a new turning point full of opportunities opens up big doors for businesses to develop, but starting a business also brings many challenges for entrepreneurs. What advantages and disadvantages will there be before young entrepreneurs decide to start a business?

When it comes to establishing a business, besides legal issues, procedures, besides capital issues, planning methods help you raise capital easily (in case of an incident), the ability to forecast profits in advance. The capital recovery process in the report, detailed analysis and clear action plan in the commercial aspect are also issues worth your attention.

• Have you prepared the legal and accounting procedures or asked a professional consultant to do it?
• Have all financial issues been clearly planned before intending to start a business?
• Start-up helps businesses operate more effectively
• The profit from establishing a business is more than you expected, how much is the cost?
• Being proactive in all matters thanks to youth and a new approach to problems, many good solutions including money sources and inventory management are being put on the agenda;
• Young, visionary leaders with enthusiastic new employees can compensate for the problem of few employees, helping to deploy and create a flexible and easy-to-manage operating system in all situations;
• When should you establish a company? What is the business establishment process? How many steps are needed to start a business?

If you already have the above conditions along with careful preparation of human resources, facilities, office location, operating and development strategies, then establishing a business at this time is extremely necessary for you.

3. Conditions for carrying out procedures for establishing a company in 2024

To successfully complete the process of establishing a business, the following conditions must be met:

• Owner and legal representative: 18 years of age or older, have valid documents proving legal status (ID card, citizen ID card or passport) and are not in the group of cases prohibited from establishing a business.
• Company address: Procedures for establishing a commercial location must comply with national regulations. This includes determining the address of the registered company headquarters and not an apartment building with residential functions.
• Company name: must not be the same or confusing with the company that has registered the business establishment procedure (nationwide).
• Charter capital: It is necessary to clearly identify the registered capital when starting the business registration procedure. This is the capital that investors, members, and shareholders commit to contribute fully within the prescribed period of no more than 90 days from the date the company is granted a business license and is clearly stated in the company’s Charter.
• Determine your business: Business entities must determine the industry that is permitted by law to register for business registration procedures. At the same time, the company must also meet the requirements of the industry.
• Determine the type of company: Investors must standardize their business type according to the business registration law.

4. Detailed company establishment procedure guide in 2024

With over 10 years of experience in guiding the company establishment procedure guide, business licenses or business mergers, Viet My will guide you in establishing a business. The procedures for establishing a business/enterprise for most types of businesses today include the following steps:

4.1 Necessary documents for company establishment in 2024

4.2 Detailed company establishment process in 2024

Step 1: Prepare documents

If the lawyer has complete information and advice on the company name, business location, expected business lines, information on members, founding shareholders, information on the company, charter capital and legal representative of the company. Based on the information provided by the client, Viet My Company will advise on related legal issues, prepare company establishment documents and send them to the client within a maximum of 01 working day from the date of providing complete information. client.

Step 2: Submit documents and pay the company information disclosure fee

Viet My Company submits documents to apply for a company registration certificate via the National Company Registration Information Portal.
The time to complete the procedure is 3 working days.

Step 3: Issuance of Business Registration Certificate

After 3 working days, customers will receive a registered business registration certificate.

Readers can refer to Viet My’s company establishment service in Thu Duc.

Step 4: Seal engraving

After receiving the business registration certificate and business tax code, Viet My will proceed to engrave the company seal.
Time of implementation: Implemented on the same day of business registration.

According to the provisions of the Enterprise Law 2020 effective from January 1, 2021, we engrave the seal ourselves and are responsible for the use of our legal seal. Therefore, the company does not need to publicize the seal sample as before. Although this is also very new to the Enterprise Law 2020, it is also a concern of many companies about the use of the company seal without autonomy or supervision of relevant state management agencies.

Step 5: Transfer the full results to the customer and guide the customer to complete the steps after establishment.

After completing the procedure for applying for a business registration certificate, Viet My Company will send the following service results to the customer. Business registration certificate, seal and documents. At the same time, we also advise on the process and information after establishing the company.

VIET MY LAW AND ACCOUNTING is confident to be the leading legal consultant for businesses for over 10 years. In addition to guiding the procedures for establishing a company, we also provide business establishment services, consulting on procedures for establishing a new business, applying for a business license, business merger procedures and other prestigious, quality and best priced services.