Procedures to establish sportswear manufacturing company in Vietnam
The current Vietnamese legislation has regulations that are very open for business establishments. A sportswear company brings many advantages to the owner as the sports trend grew strongly. Therefore, many individuals and organizations aim to build their businesses to sell sportswear. However, to establish a sportswear manufacturing company, people must go through certain procedures. What are those? In this article, LSX legal firm would like to provide instructional information about: “Procedures to establish sportswear manufacturing company in Vietnam”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Conditions to establish sportswear manufacturing company
The current law allows individuals and organizations to freely choose business lines for their businesses within the scope of industries and professions that the law does not prohibit.
In addition, for a number of conditional business lines prescribed by the Law on Investment 2020, an enterprise wishing to conduct such business must fully satisfy the conditions required by the law. However, this sportswear manufacturing industry not on the list of conditional business lines. Therefore, individuals and organizations can freely do business and choose the form of organization of clothing production in accordance with their capabilities and needs.
Before deciding to invest in a business in the form of a household business or any other type, individuals and organizations should also consider carefully the basis of their existing factors to make a suitable decision. Each type of business has its own advantages and disadvantages. Individuals and organizations can consider the following business types:
- Business household
- Sole proprietorship
- Partnership
- Single-member limited liability company
- Multi-member limited liability company
- Joint-stock company
Business lines
You can refer to some codes of the business lines below:
- Yarn making: 1311
- Production of woven fabrics: 1312
- Finishing of textile products: 1313
- Manufacture of knitted fabrics, crocheted fabrics, and other nonwovens: 1321
- Manufacture of ready-made garments (except for costumes): 1322
- Sewing of clothing (except fur clothing): 1410
- Manufacture of knitted and crocheted garments: 1430
- Wholesale of fabrics, garments, shoes: 4641
- Other specialized wholesale not yet classified such as Wholesale of silk, fiber, and textile yarn, garment and footwear accessories: 4669
- Retail sale of garments, footwear, leather, and leatherette goods in specialized stores: 4771
Procedures to establish sportswear manufacturing company
Step 1: Prepare documents to register the business
At this step, for each type of company, the requirements for the profile that you need to prepare differs. However, in general, no matter what type of company, you need to prepare the following basic documents for the procedures to establish sportswear manufacturing company:
- Firstly, the application form submits to the business registration office requesting the certificate to establish a sportswear manufacturing company.
- Secondly, draft of company charter.
- Thirdly, list of founders.
- Fourthly, authenticated legal papers of members.
- Also, valid identification papers of the authorized representative and the legal representative.
- Legal capital confirmation document.
- Equally important, certificate of business registration (for organizations).
- Lastly, Investment registration certificate for foreign investors.
Reference to the registering application for types of companies
Firstly, Application for registration of a joint-stock company
1. The enterprise registration application form.
2. The company’s charter.
3. The list of founding shareholders; the list of shareholders that are foreign investors.
4. Copies of:
a) Legal documents of founding shareholders and shareholders that are foreign investors who are individuals and legal representatives;
b) Legal documents of shareholders that are organizations, documents about the designation of authorized representatives; legal documents of authorized representatives of founding shareholders, and shareholders that are foreign organizations.
Legalized copies of legal documents of the members that are foreign organizations.
c) The Certificate of Investment Registration of foreign investors as prescribed by the Law on Investment.
Secondly, Application for registration of a limited liability company
1. The enterprise registration application form.
2. The company’s charter.
3. The list of members.
4. Copies of:
a) Legal documents of members who are individuals and legal representatives;
b) Legal documents of members that are organizations, documents about the designation of authorized representatives, and their legal documents.
Legalized copies of legal documents of the members that are foreign organizations.
c) The Certificate of Investment Registration of foreign investors as prescribed by the Law on Investment.
Thirdly, Application for registration of a partnership
1. The enterprise registration application form.
2. The company’s charter.
3. The list of partners.
4. Copies of legal documents of the partners.
5. Copies of the Certificate of Investment Registration of foreign investors as prescribed by the Law on Investment.
Also, Application for registration of a sole proprietorship
1. The enterprise registration application form.
2. Copies of legal documents of the sole proprietorship’s owner.
Step 2: Submit dossiers
Submit the application at the Business Registration Office of the Department of Planning and Investment at the province level where you plan to locate the head office of your Company.
Currently, there are two forms to submit an application:
- Register directly: apply at the “one-stop” department of the Business Registration Office. However, in Hanoi, this method is no longer applied.
- Online business registration: submit your application on the National Business Registration Portal (Address: https://dangkykinhdoanh.gov.vn). After the online application is valid, you will have to go directly to the “one-stop” department to return the scanned copy (hard copy) when submitting it online. However, this method is relatively complicated, requiring you to have skills and knowledge about registering a business account.
Once you have submitted your application, you will receive a receipt for your application. The usual processing time for applications will be 3 working days.
Step 3: Receive result
According to the schedule on the appointment, you return to the “one-stop” department of the Business Registration Office to receive the results. There are two possible scenarios:
- Dossiers valid: You will receive a Certificate of Business Registration as a result and a notification to the tax authorities.
- In contrast, dossiers invalid: The Business Registration Office will have a document instructing you to amend the dossiers in accordance with the provisions of the law. After the amendments and supplements to your application according to this guide, then resubmit your application as in Step 2.
Step 4: Post-establishment procedures.
Receiving a Business Registration Certificate is just the first step in putting your company into operation. After that, you have to do the following series of procedures:
- Notice the use of the company’s seal sample.
- Bank account notice (if your company registers a bank account).
- Tax procedures such as license declaration and payment of license fees, Tax on corporate headquarters inspection,…
- Trademark protection (if you need it).
- …
After carrying out these procedures, your Company can go into operation.
LSX legal firm’s service on company establishment
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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Related questions
Firstly, Business Name: The company name must include two parts in order: Type of business + Name. Specifically, for a single-member limited liability company: “limited liability company / limited company + company name”. Firms must choose the names written by the letters of the Vietnamese alphabet, letters F, J, Z, W, numbers, and symbols.
Secondly, Head office: The head office of the enterprise must locate in the Vietnamese territory. It is the contact address of the business and is identified by administrative boundaries. In addition, phone number (required); fax number, and email address (if any).
Thirdly, Owner: The owner of a single-member limited liability company may be an individual or an organization. However, such individual or organization must have full capacity for civil acts and not prohibited by the State from establishing or joining an enterprise.
Fourthly, Business line: enterprises are only allowed to register their business within the scope of business lines which are not prohibited by law. However, for conditional business lines, enterprises must have practice certificates and related legal papers.
Lastly, Charter capital: The capital to establish an enterprise must be suitable to the business line and scale of the enterprise. For enterprises with business lines requiring legal capital, the charter capital must not be lower than the legal capital.
Firstly, fraud related to invoices and vouchers.
Second, deduct VAT on goods and services that are not related to production and business activities.
Third, declare before the time of receipt of state budget payment documents.
Fourthly, fraud through the reduction of output VAT.
Contact LSX
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