Distinguish between Business License, Certificate of Business Registration
Accordingly, many often misunderstand the Certificate of Business Registration is also a type of business license. But in essence, these are two completely different concepts. Therefore, in this article, LSX will distinguish between Business License and Certificate of Business Registration in Vietnam.
Legal ground
- 2020 Enterprise Law
What is Business License?
Accordingly, a business license is a type of paper issued to enterprises with conditional business lines; after the Business Registration Certificate. Thus, for industries and professions where the law on investment; and relevant laws set up the conditions; enterprises may only conduct business in such lines or professions when they fully satisfy the conditions. In fact, Business conditions are requirements that enterprises must have; otherwise must do when doing business in specific lines of professions represented by a business license; certificate of business eligibility; practicing certificate; professional liability insurance certificate; legal capital requirements, or other requests.
What is Certificate of Business Registration
Hence the regulation, a Certificate of Business Registration is a paper or electronic document that records information on business registration that the business registration agency issues to an enterprise. Basically, it can be seen that the Certificate of Business Registration is a certificate of the State public administrative agency; record some of the most basic information of the business, and is the basis for determining the State’s obligation to protect the ownership of business names.
What are the differences?
About the legal meaning
Thus, Certificate of Business Registration is the certificate of the State public administrative agency; is the obligation of the State to protect the ownership of enterprise names. Whereas, a business license is the operation permission of the State management agency; is the business right of citizens, also known as the request-grant mechanism.
About the conditions
In case of the Certificate of Business Registration:
- The registered business lines and trades are not the prohibited lines from business investment
- The name of the enterprise is set strictly according to the provisions of the Enterprise Law 2020
- Valid business registration documents
- Fully pay the business registration fee following the law on fees and charges
In case of the Business license:
- Business conditions are requirements that enterprises must have; or must do when doing business in specific lines or professions; certificate of business eligibility; practicing certificate; professional liability insurance certificate; legal capital requirements or other requirements.
- Fully satisfy the conditions for each conditional business line following the law. These conditions can be in terms of facilities; on legal capital; about practicing certificates;…
About the duration of existence
Firstly, for Certificate of Business Registration: The duration will vary on the decision of the investors.
Secondly, for Business license: Due to the permission of the competent State agency to write in the license, the term is usually from a few months to several years.
Above is the answer to “Distinguish between Business License and Certificate of Business Registration”. In case are staying in this situation, please contact Lawyer X for quick and best legal services: 0833102102.
Foreign investors may set up every type of company in Vietnam. However, LLC and JSC are the most common among them.
No, a Foreign Capital Company does not need a Legal Representative or a Director who is Vietnamese.
Thus the provisions of the 2020 Enterprise Law and WTO Law, enterprises have the right to freely conduct business in industries, as long as the regulation does not prohibit
Conclusion: So the above is Distinguish between Business License, Certificate of Business Registration. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
