The initial procedures when establishing a company are quite complicated and require consultation from experienced experts to make this procedure run smoothly and without errors. After completing the documents related to company registration, the business needs to carry out a number of necessary procedures so that the new company can officially go into operation. Let’s find out how the initial procedures when establishing a company are carried out with Viet My Law and Accounting.

1. Concept of company establishment

Establishing a company is a legal procedure carried out by members/shareholders/owners of the company to receive a business registration certificate from a competent authority. The establishment of a company will helps business activities be conducted legally in Vietnam.

Establishing a company is a complex procedural process and requires a lot of knowledge about legal, tax and business management expertise. The establishment of a company will need to comply with legal regulations and be carried out in accordance with the correct procedures to ensure the legality and effective business operations of the company.

2. Conditions for establishing a company

According to current legal regulations, establishing a company will need to meet the following conditions:

– Legal representative and owner: Accordingly, this representative must be 18 years of age or older, have an identity card or citizen identification card or a valid passport and not belong to the group of subjects affected by the law. listed on the list of prohibited companies from establishing a company.

– Company address: Must have a defined address that is not located in an apartment building

– Company name: The company name must not be identical or likely to cause confusion with the names of other established companies (applicable nationwide).

– Charter capital: When establishing a company, the charter capital must be determined for business registration. Charter capital is considered the amount of capital contributed by the owner, members or shareholders or it can also be a commitment to contribute in full within a certain period of time (no more than 90 days from the date the company enters into business). issued a Business Registration Certificate) and recorded in the company’s Charter.

– Determining the business line: The line of business that the business owner wants to choose for registration must be permitted by law as well as the business must meet all the conditions of the line of work prescribed by law ( if any).

– Determine the type of company: Business owners should also consider choosing the appropriate type of organization based on the criteria of tax liability, legal liability, transferability, and supplementation. Supplement, replace and scale the business, this is also to meet the efficiency of the business operations of the business.

3. Initial procedures when establishing a company

If you do not follow the steps to establish a new company correctly, you will easily encounter problems and have to redo the procedure many times.

3.1. Procedures for establishing a company according to the Enterprise Law 2020

Based on the provisions of the Enterprise Law 2020, the initial procedures when establishing a company are as follows:

Step 1: Submit and receive business establishment documents

The business owner, legal representative or authorized person submits documents at the “One-Stop” Department of the Business Registration Office – Department of Planning and Investment. Then pay fees and charges (if any) and receive a receipt for processing the application.

How to do it: Submit the application directly at the “one-stop shop” department of the business registration office of the Department of Planning and Investment. Or businesses can also submit applications online at the National Business Registration Portal.

– Business Registration Office of the Department of Planning and Investment to receive documents and return receipts directly to businesses and organizations or via email.

Step 2: Process company establishment documents

The Business Registration Office of the State agency will process the application, along with asking for opinions from relevant agencies (if necessary) during the application process.

Complete the results of document processing and transfer to the Business Registration Office One-Stop Department to pay to the company owner or legal representative of the business.

Step 3: Return the results of processing business establishment documents

+ When the business owner receives the results of processing documents at the “one-stop” department of the business registration office,

+ Enterprises can perform tasks such as engraving seals, declaring license fee declarations, opening bank accounts, or notifying bank accounts to the Department of Planning and Investment.

3.2. Procedures for establishing a company in practice

Although the procedures for establishing a company are based on the above regulations, in reality, it is not difficult to realize that when implementing for customers, Viet My Law and Accounting has the following notes:

Step 1: Submit online business establishment application

The business owner, legal representative of the business or authorized person declares and submits business establishment documents on the State’s National Information Portal regarding business registration issues.

The business registration agency receives the application and returns the Appointment Result via email. The Business Registration Office will process the application as well as notify the results of the application to the business owner via email within 03 days.

Step 2: Submit the hard copy company establishment application directly along with paying fees and charges

If the company has received notice of valid documents from Step 2, the business owner, legal representative of the business or authorized person shall submit the hard copy documents directly to the Business Registration Office. Along with that, you must pay fees and charges (if any), register for the form of receiving results: delivery to headquarters or direct receipt at the one-stop department.

Step 3: Issuance of company registration certificate

The business registration agency can receive the original company documents, carefully check the documents along with notifying the issuance of the Business Registration Certificate and expected code via email to the submitter. file.

The person submitting the application to the door department receives the Business Registration Certificate or can receive it from the delivery unit.

Step 4: Engrave the corporate seal and announce the seal model

Businesses can design and engrave their own seals or hire a licensed unit to do so. The business seal will have to ensure that it contains two contents such as the business name and business code. The seal will not overlap or cause confusion with state agencies or public service units.

Step 5: The business performs other tasks after its establishment

After establishing a company, there will be a lot of work that the business will need to  carry out. Important tasks such as: Opening a bank account, preparing license fee declarations, setting up initial tax accounting records…

Note: Based on Decree 22/2020/ND-CP, from February 25, 2020, newly established businesses will be exempt from license fees for the first year of establishment.

4. Time to process company establishment procedures

Within 3 working days, the State agency receiving the application will be sent a response notice via email to register for business establishment procedures.

• If the application is valid, the business only needs to print a receipt (no need to submit the original application) and receive the results directly at the Business Registration Office of the Department of Planning and Investment.
• In case the application is not valid, you will have to edit and supplement according to the feedback notice from the Department of Planning and Investment and resubmit according to the steps in the above procedure.

5. Frequently Asked Questions about Initial procedures when establishing a company

5.1. Does a company that has just been granted a business establishment certificate need to hang a sign immediately?

Hanging the company’s sign at the place of business registration is considered a must-do thing as soon as the company goes into operation. Regarding the size of the sign, businesses can do it arbitrarily or based on company premises.

According to the Advertising Law, Article 34, the content of the sign will include the following information: Company name, address, business code. The above information is required to correspond to what the owner has previously registered.

5.2. Where can businesses register to establish a business?

Company registration will be conducted at the state agency on business registration at the provincial level. Specifically, the business registration office under the investment plan of that province has had to register its business.

5.3. How much capital does a business need to establish a company?

The minimum or maximum capital for establishing a company has long been no longer regulated in the Enterprise Law as well as the Decree and Circular. The capital for establishing a company is based on the following criteria:

(i) Financial capacity of each member/shareholder/company owner according to each type of business: In cases where all members/shareholders/owners of the company have financial capacity, all who can contribute a lot of capital when established.

(ii) Company’s business lines: In case a company operates in manufacturing, it will need more capital than a company operating in the service sector.

5.4. Does establishing a company require permanent residence?

The answer is no. Because when establishing a company, members or shareholders or owners only need to provide the State agency with personal documents to help prove identity as identity cards/ passports/citizens’ IDs.

5.5. After completing the company establishment procedures, what does a business need to do?

After the enterprise is provided with a business registration license by the State, the enterprise needs to perform the following tasks:
+ The first thing is to blacken the company seal.
+ Second, opening a bank account and registering for electronic tax payment.
+ Third, businesses must submit a license tax declaration and pay license tax.
+ Fourth, initial tax declaration is done at the Tax Department/Tax Management Department.
+ Fifth, hang signs at the company headquarters.
+ Sixth, register to use Electronic Invoice (if necessary).

Above is an article about the issue “Initial procedures when establishing a company“, we hope that this article from VIET MY LAW AND ACCOUNTING company will help readers understand more about the type of procedures for establishing a company. ty. We are pleased to answer your readers’ questions.