Do hand-carried goods business have to establish a company in Vietnam?
Currently, the sale of hand-carried goods from abroad increases more and more in Vietnam. So, do hand-carried goods businesses have to establish a company in Vietnam? LSX legal firm will answer that questions in this article.
Legal grounds
- Law on Enterprise 2020
- Decree 39/2007/ND-CP
Cases where hand-carried goods sales don’t need to establish a company
Article 3. Interpretation of terms
1. Individuals doing trade mean individuals who everyday themselves conduct one, several or all activities allowed by law on goods purchase and sale, service provision and other activities with purpose of profitability but do not register their business as prescribed by law on business registration and not be called as “trader” as prescribed by the Commercial Law. Particularly including individuals doing the following trade activities:
a) Street trading (trading in public places) means activities of purchase and sale without a fixed location (purchase on street, sale on street or both purchase and sale on street), includes even the receipt of books, news, magazines, cultural products of traders allowed doing business in these products as prescribed by law, for sale on street;
b) Petty trading means purchase and sale of small and odd items with or without a fixed location;
c) Petty-food trading means sale of fruits, cakes, candies, drinks (beverage) with or without a fixed locations;
d) The consignment trading means purchase of goods from other places according to each consignment to sell for wholesalers or retailers;
dd) Providing services: Polishing shoes, selling lottery tickets, repairing key, repairing vehicles, safekeeping for vehicles, washing for vehicles, barber, painting, taking photo and other services with or without fixed locations;
e) Other commercial activities done independently and regularly do not have to register for business.
According to this regulation, the sale of hand-carried goods not required to establish an enterprise in the following cases:
- Hand-carried goods are small and few.
- The sale of hand-carried goods does not have a fixed location.
- Hand-carried goods sold to wholesalers or retailers.
Cases where hand-carrying sales have to establish a company
In case the sale of hand-carried goods is on a small and medium-sized scale and is a long-term business, the business must be registered in the form of a business household or an enterprise.
Business household
Select the form of individual business household in the following cases:
- Individuals or groups of Vietnamese citizens, 18 years or older, have civil act capacity.
- Individuals who want to do business at a fixed location without a branch or representative office;
- Less than 10 workers;
- Small charter capital;
- Do not want to issue a VAT invoice;
Procedures to establish a business household:
Step 1: Individuals, groups, or representatives of households send an application for business household registration to the business registration office of the district where the business location is located.
Step 2: Within 03 working days from the day on which the business registration office of the district receives the application, the business registration authority must issue the following decision:
- In case the application is valid and meets the conditions for the business line, the name of the business household to be registered, and the business registration fee has been fully paid, then the business registration office of the district will issue a receipt and grant business household registration certificates to business households.
- In case the application is not valid, the business registration office of the district must clearly notify in writing the contents that need to be amended and supplemented to the business household founder.
Enterprise
Select the form of enterprise in the following cases:
- Large business scale – want to open a branch or representative office;
- Large charter capital;
- No limit on the maximum number of members (except for multi-member Limited Liability Company with a maximum of 50 members);
- Issuing VAT invoices;
Procedures to establish an enterprise:
Firstly, submit 1 set of business registration dossiers to the Business Registration Office of the Department of Planning and Investment.
Secondly, the business registration agency will receive the application and responsible for the validity of the application. The applier take responsible for the legality of the submitted documents.
Thirdly, Step 2: Within 03 working days from the day on which the business registration office receives the application, the business registration authority must issue the following decision:
- In case the application is valid and meets the conditions for the business line, the name of the business household to be registered, and the business registration fee has been fully paid, then the business registration office will issue a receipt and grant a business registration certificate to the business.
- In case the application is not valid, the business registration office must clearly notify in writing the contents that need to be amended and supplemented to the business.
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.
Related articles
Procedures to establish a pet care services company in Vietnam
Conditions for business in tourist accommodation establishments according to Vietnamese law
Conditions for establishing a representative office of a foreign company in Vietnam
Related questions
Submit business registration application directly at the One-Stop Department of the Department of Planning and Investment where the company is located;
Submit online: https://dangkytinhdoanh.gov.vn
A company is an organization with its own name, assets, transaction office, and seal.
When you set up a company, you will have legal status to do the business you want.
Have the right to issue red invoices (also known as VAT invoices) to partners and customers when they need an invoice to legalize the company’s expenses.
You will create trust with your partners
After establishing a company, business transactions or procedures with state agencies are also easier such as signing contracts, importing and exporting, paying social insurance for officials and employees, mobilizing capital from individuals, organizations, lending capital from banks, etc.
Business is protected by law.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Do hand-carried goods business have to establish a company in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is Do hand-carried goods business have to establish a company in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
