What kind of permits does the transport unit need to apply for in Vietnam?

In recent years, transportation services develops strongly in Vietnam, a series of transport companies and enterprises established. However, to establish a transport company, people have to apply for certain kinds of permits. This may confuse businesses in applying for business licenses. So, in this article, LSX legal firm will answer the question: “What kind of permits does the transport unit need to apply for in Vietnam?’

Legal ground

• Decree 10/2020/ND-CP

Transport business unit

Currently, the law gives no regulation that directly defines a transport business unit. This concept is only approached under the enumeration method. Accordingly, Clause 1, Article 3 of Decree 10/2020/ND-CP stipulates: “transport business” refers to an enterprise, a cooperative, or a household business operating an auto transport business.
Thus, the transport business unit here means the transport business by car and truck.
Passenger transport business units and freight transport business units must have a license for transport business by car (hereinafter referred to as business license) issued by the Department of Transport of provinces and cities directly under the central government.

General conditions for issuance of a transport business license

• Firstly, business registration.
• Secondly, transport vehicles must have cruise monitoring devices in accordance with regulations
• Thirdly, the person who runs the transport business must have an intermediate or higher degree in transport and have participated in the management of transport at companies, enterprises, and cooperatives doing transport business for at least 03 years;
• Fourthly, having a sufficient number of transport vehicles under the ownership of the enterprise or having the legal right to use it when renting a vehicle.
• Also, having a parking place according to regulations, ensures the quantity, quality as well as expiry date of the vehicle in accordance with the form of business.
• In case the registered means of transport are owned by a cooperative member, there must be an economic commitment between the cooperative and the cooperative member, which stipulates the rights, responsibilities, and obligations of the cooperative to the cooperative members. means of transport owned by cooperative members.

What kind of permits does the transport unit need to apply for?

In case of transporting people and goods by truck or car

Step 1: Register your business

First, in order to apply for an automobile transport business license, individuals and organizations must establish enterprises, cooperatives, and business households and register industries and professions related to transport business, specifically:

– 4921: Transporting passengers by bus in the city.

– 4922: Transporting passengers by bus between inner city and suburb, intercity.

– 4931: Transportation of passengers by road within the inner city and suburbs (except for transport by bus).

…

Step 2: Apply for a transport business license

The procedure for registration of a transport business license is carried out based on Article 19 of Decree 10/2020/ND-CP:

“a) The transport business shall submit an application for the business license to the issuing authority. If the application needs to be amended, the issuing authority shall inform the contents to be amended to the applicant directly or in writing or via the online public services system within 03 working days from the date of receipt of the application;

b) Within 05 working days from the date of receipt of the adequate application, the issuing authority shall appraise the application and issue the license made using the form in Appendix II of this Decree. If the application is rejected, the issuing authority shall explain the reason to the applicant in writing or via the online public services system.”

Step 3: Apply for a car badge

A necessary procedure to ensure safety as well as comply with the law. Conditions for applying for a contract vehicle badge:

• Must have a license for passenger transport business by car under the contract.
• Contract vehicles need to install cruise monitoring devices.
• Register the contract vehicles in accordance with the law.

Dossier of application for a transport business license for enterprises and cooperatives:

• Firstly, an application for a business license, made according to the form specified in Appendix I of Decree 10/2020
• Secondly, copies of diplomas and certificates of the person directly managing transport activities;
• Thirdly, copy or original of the Decision on establishment and regulations on functions and tasks of the department managing and monitoring traffic safety conditions (applicable to enterprises and cooperatives engaged in passenger transport business) on fixed routes, passenger transport by bus, passenger transport by taxi, freight transport by containers, passenger transport using electronic contracts).

Dossier of application for a transport business license for business households:

• An application for a business license made according to the form specified in Appendix I of Decree 10/2020/ND-CP
• Also, copy of Business Registration Certificate.

In case of transporting goods and documents

Step 1: Register your business with the appropriate business code and the required minimum charter capital

• For the case of providing postal services within the province, or inter-province, the enterprise must have a minimum capital of 02 billion Vietnam dong;
• In the case of providing international postal services, enterprises must have a minimum capital of 05 billion Vietnam dong.

Besides, the minimum capital must be shown in the postal business registration certificate or the postal investment certificate in Vietnam.

Step 2: Apply for a postal service business license 

Procedures for applying for a postal service business license

Step 1: Prepare documents

Enterprises prepare documents according to the scope of the business wishes to ensure that the application meets the corresponding license type as prescribed in the instructions above to submit the application.

Step 2: Submit dossiers to competent state agencies

• Department of Information and Communications of the province or city where the enterprise applies for a license to operate: Appraising the application for a license to provide postal services within the province.
• Ministry of Information and Communications: Appraisal and license application for a license to provide postal services within an inter-provincial and international scope.

Step 3: The state agency appraises the license application

• Within 03 working days from the date of receipt of the application, the state agency competent to issue the postal license shall send a receipt of the application to the email address (e-mail) of the enterprise or organization applied for a postal license.
• In case the application file for a postal license does not meet the requirements; within 07 working days from the date of receipt of the application; the state agency competent to issue a postal license shall send the first notice of contents that need amendment or supplementation in the dossier. Then, within 15 working days from the date of notification; the enterprise or organization take responsible for amending and supplementing the dossier as required.
• If the application is not amended or supplemented as prescribed; or there are amendments and supplements that are not satisfactory; the state agency competent to grant postal permits shall send a second notice within 07 working days from the date of expiry of the 1st notice period. Then, within 15 working days from the date of the second notification, the enterprise take responsible for amending and supplementing the dossier as required.
• In case of failure to amend or supplement the dossier as required, the state agency competent to grant postal permits shall issue a notice of refusal to grant a postal license within 07 working days from the date of expiry of the second notice.

Legal service of LSX Legal Firm

LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:

• Legal advice related to new regulations in business suspension;
• Representing in drafting and editing documents;
• We commit the papers to be valid, and legal for use in all cases;
• Represent to submit documents, receive results, and hand them over to customers.

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Furthermore, using our service, you do not need to do the paperwork yourself, We guarantee to help you prepare documents effectively and legally.

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