Currently, me and a few of my friends (total of 10 people) co-operated to open a coffee shop, with a total initial investment of 650 million with an area of 50m2. So when I go to register for a business license, should I write “individual business” or “private enterprise” or another type of business? Is opening a coffee shop in Vietnam the same as setting up a company? Looking forward to helping my counsel. I would like to express my sincere thanks to Lawyer.
With large-scale, large-scale coffee shops and branded coffee chains like Trung Nguyen, it is definitely necessary to register a business. But for shop owners who intend to only open a small cafe at home, with little capital and a small scale, do they need to register for a business license and set up a business for a home coffee? Let’s find out this issue with Lawyer X.
Legal grounds
Enterprise Law 2020
Circular No. 47/2019/TT-BTC
Choose the type of household business when opening a coffee shop in Vietnam
You can set up a business. For a business household owned by an individual or a group of individuals who are Vietnamese citizens who are full 18 years old, have full civil act capacity, or are owned by a household, only business registration is permitted. at one location, employs less than ten employees and is responsible with all its assets for business operations.
Advantages:
Compact scale
Simple accounting voucher mode
Suitable for individuals and small businesses
Defect:
No legal personality
Be responsible with the entire property of the owner of the individual business household
Fragile nature of business
Is opening a coffee shop in Vietnam the same as setting up a company?
The answer is yes”! To run a coffee shop with 10 friends, you need to register with the authorities to establish a business household or a limited liability company with 2 members or more.
Based on the information you provide, we also outline the pros and cons of each type so you can choose the most suitable one for yourself:
How much does it cost to register a coffee shop business?
Fees for assessment of conditions in the field of security
Pursuant to the provisions of Decree No. 96/2016/ND-CP, in order to issue a Certificate of satisfaction of security and order conditions, procedures for appraisal of security and order conditions must be carried out. In this case, according to the provisions of the List of fee and charge rates promulgated together with Circular No. 218/2016/TT-BTC, as amended by Circular 23/2019/TT-BTC, the fee level The fee for assessment of conditions in the field of security is determined to be 300,000 VND/time.
Business registration fee
In case of household business registration, you pay the registration fee according to the decision of the People’s Committee of the province or city where the household business is located. According to Circular No. 47/2019/TT-BTC stipulating the collection rate, mode of collection, payment, management and use of fees for providing enterprise information, business registration fees, specifically the fee schedule as follows:
| No. | Content | Unit | Collection rates |
| 1 | Business registration fee (including: Issuance, re-issuance, change of contents of Certificate of enterprise registration and Certificate of operation registration of branches, representative offices, business locations of enterprises) | VND/time | 50,000 VND |
| 2 | Fee for providing business information | ||
| a | Provide information on the Certificate of Business Registration; Certificate of operation of branch, representative office, business location | VND/copy | 20,000 VND |
| b | Provide information in the enterprise registration dossier; Provide financial reports of all types of businesses | VND/copy | 40,000 VND |
| c | Provide general reports on businesses | VND/report | 150,000 VND |
| d | Announcement of business registration contents | VND/time | 100,000 VND |
| đ | Provide business information by account from 125 copies/month or more | VND/month | 4,500,000 VND |
What is the procedure to apply for a coffee business license?
Apply for a business license
There are two directions for this business form: Business registration in the form of household business; Business registration type establishment of a coffee company. However, the general procedure to apply for a license is:
– Application form according to the form;
– A certified copy of the identity card/Citizen identity card of the members;
– Other relevant documents and documents depending on the type of business household/enterprise registration.
After preparing the documents, you should go to the Finance – Planning Department of the District People’s Committee (if registering a business household) or the Department of Planning and Investment of the province/city (if registering a business) where set up headquarters and wait for the results.
Apply for a food safety license
A dossier of application for a food safety and hygiene license includes:
– Health certificate and ID card for employees working at the cafe: The health certificate must be valid within 12 months.
– The declaration “Request for knowledge of food hygiene and safety” according to the form.
– Business registration license with registration of food business (certified copy), coffee quality announcement (certified copy), coffee purchase and sale invoice, Certificate of establishment coffee factory.
– The drawing of the design plan of the basic floor plan of the surrounding ground.
– Diagram of the food production or distribution process (omitted if it is an individual business registration).
– An explanation of the facility’s equipment, facilities and tools.
– Certificate of establishment owner and direct manager of the establishment.
– Certificate of food safety knowledge of the establishment owner.
– The materials at the cafe must have a full supply contract, sales invoice …
What are the regulations on tax declaration for coffee shops?
Enterprises running coffee shop chains on a large scale will need to pay a lot of taxes: VAT, license tax, personal income tax, corporate income tax. In addition, the Tax Department is now encouraging businesses to switch to online tax declaration form. This means that all declaration procedures will need to be done online via the internet.
Businesses will need to approach a new, customized declaration method accordingly. For example, it is necessary to register a digital signature, register an account, file a tax return, tax declaration software.
What are the taxes when opening a coffee?
Whether it’s a large or small cafe, there are taxes to be aware of. According to Article 2, Circular 92/2015/TT-BTC, taxes that coffee shop businesses need to pay include:
Taxes/license fees
License fee is the tax payable annually or when the enterprise is new to production and business based on the charter capital in the business registration certificate/investment capital stated in the investment registration certificate (for organizations) or revenue of the year (for business households and individuals).
License fees for business households are as follows:
– revenue over 500 million VND/year: 1,000,000 VND/year;
– revenue over 300 to 500 million VND/year: 500,000 VND/year;
– revenue over 100 to 300 million VND/year: 300,000 VND/year;
– turnover under 100 million VND/year: exempted.
Value-added tax
Value-added tax is an indirect tax and is charged on the added value of goods and services arising from the production and circulation process until they reach consumers.
Because it is an indirect tax, the cafe only pays this tax on behalf of the customer to the state agency. Taxpayers are actually consumers.
Circular 219/2013/TT-BTC stipulating the VAT rate is 10%.
Circular 92/2015/TT-BTC guiding the payment of value added tax as follows:
Amount of VAT payable = VAT revenue x VAT rate.
Personal income tax
Personal income tax is a tax that businesses pay on behalf of employees. This tax is calculated on a monthly basis, declared monthly or quarterly, but settled annually.
PIT payable is PIT revenue x PIT rate
For coffee shop business, the personal income tax rate is 1%.
In case the cafe’s turnover is less than 100 million/year, VAT and PIT are not required.
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Frequently asked questions
In order to ensure that businesses pay license tax on time as prescribed by law, the Ministry of Finance has issued Circular 130/2016/TT-BTC stipulating penalties for cases of late payment of license tax calculated according to the law. The following formula: Fine = Amount of late payment x 0.03% x Number of days of late payment
All business units will only be allowed to operate after obtaining a business license. Owners will have many options for their business. The Tax Department also bases on that to levy taxes.
Specifically, there will be types: Enterprises, business households, business individuals
Conclusion: So the above is Does opening a coffee shop in Vietnam require business registration?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
