Conditions for setting up an enterprise in an export processing industrial park in Vietnam

by BichNgoc

Vietnam is a country with a developing economy, and export processing industrial zones have developed strongly throughout the country. An enterprise in a processing zone is a type of enterprise that has its own specific conditions and incentives. Regulations on procedures for establishing enterprises in export processing zones cause difficulties and obstacles for investors in the process of carrying out enterprise establishment procedures. LSX Lawfirm will give you an article about: “Conditions for setting up an enterprise in an export processing industrial park in Vietnam”, as follows:

– Enterprise Law 2020;

– Then Law on Investment 2020;

– Decree 01/2021/ND-CP on business registration;

– Then Circular 01/2021/TT-BKHDT guiding business registration;

– Decree 82/2018/ND-CP on management of industrial parks and economic zones;

– Finally, other relevant legal documents.

Conditions for setting up an enterprise in an export processing industrial park in Vietnam

Accordingly the provisions of Clause 10, Article 2 of Decree No. 82/2018/ND-CP so “Export processing enterprise is an enterprise established and operating in an export processing zone or an enterprise specializing in the production of products for export and operating within an export processing zone. industrial zones, economic zones”

Conditions for setting up an enterprise in an export processing industrial park are basically the same as those for setting up an enterprise specified in the Enterprise Law 2020, according to which, setting up an enterprise in an export processing industrial park must satisfy the following conditions: the following case:

(1) Firstly, conditions on professions: business lines for enterprises in export processing industrial zones must belong to the group of industries permitted by Vietnamese law.

(2) Secondly, Capital conditions: In case an enterprise in an industrial park or export processing zone registers for a business line that does not require legal capital, the amount of capital depends on the charter capital of the enterprise and must be sufficient. Minimum capital for each industry. In case an enterprise registers a business line requiring legal capital, the amount of capital must be equal to or greater than the amount of legal capital prescribed by law.

In addition

(3) Thirdly, conditions on location of the enterprise’s head office: The enterprise’s head office is located in the Vietnamese territory; is so 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). The company is not allowed to be located in an apartment complex or a collective for the purpose of living.

(4) Then, conditions on enterprise name: Do not use the same or confusing name as the name of an enterprise registered in the National Database of Business Registration on a national scale. It is so forbidden to use words and symbols that violate the historical, cultural, ethical and fine traditions of the nation.

(5) So, conditions for representatives: Pursuant to the provisions of article 12 of the Enterprise Law 2020

  • So, enterprises must prepare to choose a suitable person to be the legal representative for the company. Then this person is responsible for performing the assigned rights and obligations, must be a person with sufficient capacity and experience. The representative of the enterprise in the export processing industrial park can be the director, the chairman, the manager…
  • Enterprises must ensure that there is always at least one legal representative residing in Vietnam. When there is only one legal representative remaining in Vietnam, this person must, when leaving Vietnam; authorize in writing another individual residing in Vietnam to exercise the rights and perform the obligations of the representative.

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Conditions for establishing an export processing enterprise in Vietnam

A number of separate regulations applicable to enterprises in export processing industrial zones in Vietnam

Then conditions for establishing an enterprise in an export processing industrial park are similar to those of an economic organization in accordance with the enterprise law. However, because they established in a special area, the law has some specific provisions that apply to these businesses. Pursuant to the provisions of Article 30 of Decree 82/2018/ND-CP, a number of separate regulations include:

  • So, export processing enterprises may apply regulations for separate customs areas and non-tariff zones; except for separate regulations applicable to non-tariff zones in border-gate economic zones.
  • So, export processing enterprises or industrial zones for export processing enterprises separated from the outside territory by a fence system, with gates and doors; then ensuring conditions for inspection and supervision control by customs authorities and relevant authorities; in accordance with regulations applicable to non-tariff zones; and the law on import and export taxes.
  • Then export processing enterprises entitled to purchase construction materials, stationery, food; so foodstuffs and consumer goods from inland Vietnam to construct works, serve the operation of the office apparatus; and daily activities of employees. ministries and employees working at enterprises.

In addition

  • So, export processing enterprises, sellers to export processing enterprises may choose to carry out; or not carry out export and import procedures for building materials, stationery, food; foodstuffs and consumer goods; from inland Vietnam.
  • So, customs procedures, customs inspection and supervision for exported and imported goods of export processing enterprises comply with the law on customs.
  • When an export processing enterprise permitted to do business in goods trading; and then activities directly; so related to the purchase and sale of goods in Vietnam, it must open a separate accounting book for revenue and expenses; then related to its operations; so purchase and sell goods in Vietnam and arrange a goods storage area separate; then from the goods storage area in service of production activities of export processing enterprises; or set up a separate branch located outside the export processing enterprise, processing to perform this activity.

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Conditions for establishing a single-member LLC

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.
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).
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.
Also, 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.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Conditions for setting up an enterprise in an export processing industrial park in Vietnam”. If you need any further information, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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