Dossiers, procedures to establish textile company in Vietnam 2022

Currently, the textile and garment industry is a very developed industry. This comes from the high demand for clothing of people. Besides, this strong economic sector of our country attracts export and production investment and promotion from many traders. However, to establish a textile company, founders have to carry out certain procedures prescribed by the law. In case the businesses do not have a clear understanding of these legal procedures, they may face difficulties. So, in this article LSX legal firm would like to give you: “Dossiers, procedures to establish textile company in Vietnam 2022”

Legal grounds

• Law on Enterprise 2020
• Law on Investment 2020
• Decree 01/2021/ND-CP

Dossiers to establish a textile company

The dossiers include:

• An application for enterprise registration according to the form;
• Charter of the company (applicable to the form of partnership; limited liability company; joint-stock company);
• List of members or shareholders of the company (limited liability company with two or more members, joint-stock company, or partnership);
• Authorization paper in case of authorization;
• Copies of the following documents:

1. Legal documents of the legal representative of the enterprise.
2. Individual legal papers of company members (as individuals); Legal papers of the organization for members of the company (as organization); Legal papers of authorized representative and the document appointing the authorized representative.
3. For members being foreign organizations, copies of legal papers of the organization must be consular legalized;
4. Investment registration certificate required in case an enterprise established or participated in the establishment by a foreign investor or a foreign-invested economic organization in accordance with the provisions of the Law on Investment and its guiding documents. 

Procedures to establish a textile company

Step 1: Prepare basic information for the company establishment

• Type of business: Businesses need to choose the type of business that suits their company. The common types of company: Sole Proprietorship; limited liability company (1 member or 2 members or more); partnerships and joint-stock companies;
• Also, naming the business: A business name consists of two elements: Type of business and proper name. Accordingly, the proper name of an enterprise must not coincide or cause confusion with the names of previously registered companies nationwide. Also, businesses can not use the name of a state agency, a unit of the people’s armed forces,… to make all or part of an enterprise’s proper name unless approved by that agency, unit, or organization.
• Head office address: display the contact address of the enterprise and is determined according to the geographical boundaries of the administrative unit, have phone number, fax number, and email (if any);
• Charter capital: For companies operating in the textile industry, the law does not require legal capital as well as minimum and maximum capital levels.
• Business lines: Enterprises can do business in industries that are not prohibited by law, can specialize in textiles, or do additional business in addition to the textile and garment industries.

Step 2: Submit application for business registration and receive the result

First of all, the entity establishing the company needs to prepare a set of dossiers as mentioned above. Then, submit your application in the following ways:

• Firstly, submit business registration applications directly at the One-Stop Department of the Department of Planning and Investment where the company located.
• Secondly, submit online: https://dangkykinhdoanh.gov.vn

After the time of processing the application, The entity establishing the company receives the following results:

• Within 03 working days from the date of receipt of the application, if the application valid, then the Business Registration Office will issue an enterprise registration certificate to the enterprise.
• In case the application is not valid, the Business Registration Office must notify in writing the content that needs to be amended and supplemented to the enterprise.
• Fees: business registration fee: 50,000 VND/document. Fee for announcing business registration contents: 100,000/time (Circular 47/2019/TT-BTC).

Step 3: Post-establishment procedures

After granted the business registration certificate of a textile company, the enterprise needs to perform the following tasks:

• Within 30 days from the date of receipt of the business registration certificate; the enterprise must publish the business registration contents.
• Within 90 days from the date of being granted the business registration certificate; members and shareholders must fully contribute the registered capital.
• The company must make a register of members (register of shareholders) immediately after being granted the Certificate of Business Registration.
• Declare the license fee.
• Signboard at the company headquarters.
• Open a business bank account.
• Notice of seal sample to the business registration office.
• Tax registration for the first time.
• Notice of application of tax calculation method.
• Apply invoice.
• Register to use a digital signature.
• Labor declaration, payment of social insurance for employees.
• …

Some basic textile business codes

1311: Yarn production
1312: Manufacture of woven fabrics
1313: Finishing of textile products
1391: Manufacture of knitted fabrics, crocheted fabrics, and other nonwovens
1392: Manufacture of ready-made textiles (except apparel)
1393: Manufacture of carpets, blankets, and cushions
1394: Manufacture of twine and nets
1399: Manufacture of other textiles n.e.c
1410: Sewing of clothing (except fur clothing)
1420: Manufacture of fur products
1430: Manufacture of knitted and crocheted garments
1511: Tanning and preliminary processing of leather; Preliminary processing and dyeing of fur skins
1512: Manufacture of suitcases, bags, and the like, manufacture of seat cushions
1520: Manufacture of shoes and sandals
4641: Wholesale of fabrics, garments, shoes
46491: Wholesale of suitcases, briefcases, bags, wallets, other leather, and imitation leather goods
4751: Retail sale of fabrics, wool, yarn, sewing thread, and other textiles in specialized stores
4753: Retail sale of carpets, mattresses, blankets, drapes, curtains, wall and floor coverings in specialized stores
4771: Retail sale of garments, footwear, leather, and imitation leather goods in specialized stores
47741: Retail sale of used garments in specialized stores
4782: Retailor market retail of textiles, ready-made garments, and footwear
47842: Retail or market-based retail sale of carpets, mattresses, blankets, drapes, curtains, wall and floor coverings.

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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Contact LSX

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