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Dossier and procedures for setting up a tutoring center in Vietnam 2022

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For many students, the teacher’s teaching time in class can not provide enough knowledge. Therefore, besides self-study, extra-study in tutoring centers is very popular, this is the need of many students as well as parents. To meet that need, many people establish tutoring centers to do business in this potential line. However, to establish any education unit, you have to follow the law. So, in this article LSX legal firm provides: “Dossier and procedures for setting up a tutoring center in Vietnam 2022”

  • Law on Enterprise 2020
  • Law on Education 2019
  • Decree 84/2020/ND-CP
  • Decree 46/2017/ND-CP
  • Circular 21/2018/TT-BGDDT
  • Decree 135/2018/ND-CP

Tutoring Center

The law does not give any definition of a tutoring center, but based on the nature of its activities; it can be understood that a tutoring center is an organization that conducts tutoring activities and studies outside of school.
Currently, in addition to the tutoring center, many individuals open a tutoring agency. However, this agency only conducts brokerage activities and does not organize teaching.

Conditions for establishing a tutoring center

Currently, the establishment of a tutoring center does not belong to the professions that require an establishment license or a scheme but only needs to register with the competent authority. Therefore, to set up a tutoring center, you must first meet the conditions to establish a company or a business.

Conditions on subject

  • Individuals: Full capacity for civil acts and not serving a fixed-term prison sentence.
  • Legal entity: Currently operating and legally established under Vietnamese legislation.

In addition, individuals and legal entities to meet the procedures for establishing an enterprise in Vietnam must not fall into the cases where they not allowed to establish an enterprise according to the provisions of the Law on Enterprise.

For example: state agencies and units of the people’s armed forces use state assets to set up business enterprises to make their own profits; officials and civil servants; Professional officers and soldiers;… in agencies and units of the Vietnam People’s Army; professional officers and non-commissioned officers;…in agencies and units under the Vietnam People’s Public Security…

Conditions on financial capacity

  • Investors must ensure to contribute enough committed capital.
  • Sufficient financial capacity to pay and operate the joint venture.
  • Contributing enough capital in case of legal capital required for the registered business lines.

Note: Assets contributed as capital are Vietnam Dong, freely convertible foreign currencies, gold, land use rights, intellectual property rights, technology, technical know-how, and other assets that valued in VND. 

Conditions on business lines

  • Businesses must not do business in industries that are prohibited by law.
  • Meet the regulations on business lines for conditional business lines. For example, a food service business must have a Certificate of Food Hygiene and Safety.
  • Comply with other investment laws, such as business lines, and market access restrictions,… for the establishment of foreign-invested companies. For example, the percentage of foreign ownership in the company…

Business location

  • Must have a clear and real place of business.
  • The head office of the enterprise is located on the Vietnamese territory, is the contact address of the enterprise, and is determined according to the geographical boundaries of the administrative unit; have a phone number, fax number, and email (if any).

Conditions on business name

  • The Vietnamese name of an enterprise shall contain two elements in order:

a) The type of enterprise;

b) The proper name.

  • The type of enterprise shall be “công ty trách nhiệm hữu hạn” or “công ty TNHH” for limited liability companies; “công ty cổ phần” or “công ty CP” for joint stock companies; “công ty hợp danh” or “công ty HD” for partnerships; “doanh nghiệp tư nhân”, “DNTN” or “doanh nghiệp TN” for sole proprietorships.
  • The proper name shall consist of letters in the Vietnamese alphabet, the letters F, J, Z, W, numbers, and symbols.
  • The enterprise’s name shall be displayed at the headquarters, branches, representative offices, and business locations of the enterprise and printed or written on transaction documents, records, and printed materials published by the enterprise.

Other conditions

Firstly, location of tutoring:

  • There is a commitment with the People’s Committee of the commune/ward/township to ensure hygiene and order…
  • Publicize the contents at the tutoring site, including a License to organize activities, a list of students, a timetable, and fees.

Secondly, persons who directly perform the tutoring:

  • Reached training standards for each level of studying as well as tutoring.
  • Having sufficient health and moral qualities during the working process.
  • Not during the period of being disciplined, examined for penal liability, served a sentence, reformed, placed on probation…
  • Having confirmation of the head or chairman of the People’s Committee of the commune/ward/township on the above contents.

Thirdly, teaching organizer:

  • Reached training standards for each level of study.
  • Having sufficient health and moral qualities during the working process.
  • Not during the period of being disciplined, examined for penal liability, served a sentence, reformed, placed on probation…

Dossiers for setting up a tutoring center

Firstly, the business registration application form.

Secondly, the company charter.

Thirdly, a list of members for limited liability companies with two or more members; a list of founding shareholders, and the list of shareholders as foreign investors for joint-stock companies.

Fourthly, copies of:

  • Legal papers of the individual for the legal representative of the enterprise;
  • Legal papers of individuals for company members, founding shareholders, and shareholders as foreign investors.
  • Papers of the organization for members, founding shareholders, and shareholders as foreign investors.
  • Legal papers of individuals for authorized representatives of members, founding shareholders, shareholders as foreign investors being organizations, and documents appointing authorized representatives.

Procedures for setting up a tutoring center

Step 1: Register your business

  • Firstly, prepare the dossiers as mentioned above.
  • Submit the application to the Business Registration Office – Department of Planning and Investment where the company registers its head office.
  • How to apply: Apply directly at the one-stop department or online through the National Business Registration Portal.
  • Processing time: within 03 working days from the date of receipt of a valid application.
  • Fees: according to the regulations on fees and charges of the State.

Step 2: Register to operate the tutoring center with the business registration office, the Department of Planning and Investment.

When establishing a company, people must carry out the procedure following the law at the competent business registration authority (under the Law on Enterprise 2020). The process of establishing a business includes many different steps and phases. If you are not familiar with the law, this process may take a lot of time.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself. We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.

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Conditions for business suspension of joint-stock company in Vietnam

The infrastructure requirements for the establishment of a tutoring center?

The location must ensure the safety of teachers and learners; stay far away from places where harmful gases, fumes, dust, and noise generates.
Ensure the average area from 1.10m2/student or more, with enough light and ventilation.
The size of the study table, chair, table, and the table is designed according to the requirements of the relevant documents.
Having toilet and a place to store sanitary waste.

Can a teacher who receives a salary from the salary fund of a public non-business unit participate in teaching at a tutoring center?

According to the law, for teachers who are receiving salaries from public non-business units:
Not allowed to organize extra lessons outside the school, but can participate in tutoring outside the school;
Can not give extra lessons outside of school for students whose teachers are teaching the main course without the permission of the Head of the agency managing that teacher.

Do shareholders of the tutoring center as foreign organizations have any specific requirements in terms of papers?

Firstly, members and shareholders being foreign organizations, copies of legal papers of the organization must be consular legalized.
Secondly, having an investment registration certificate.

Contact LSX

Finally, hope this article is useful for you to answer the question about “Dossier and procedures for setting up a tutoring center in Vietnam 2022”. If you need any further information, please contact  LSX Law firm+84846175333 or Email: [email protected]

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