Currently, many vehicles such as cars are used for business purposes, but the owner does not conduct business registration in accordance with the law. This significantly affects the management of the whole business; and the means of transport of relevant competent state agencies. Is this behavior illegal? What is the penalty for unregistered cars? Today, LSX Lawfirm will give you an article about: “Fine for cars without business registration in Vietnam”, as follows:
Legal grounds
Decree No. 100/2019/ND-CP
Enterprise Law 2020
Some legal issues about car business registration in Vietnam
What is business registration?
Business registration is the written recognition of a legally competent state agency of the birth of a business entity.
What is a business license?
A business license is a type of paper issued to enterprises with conditional business lines; This type of certificate is usually issued after the Certificate of Business Registration.
Accordingly to Clause 1, Article 8 of the Law on Enterprises, it stipulates:
“Enterprises are obliged to satisfy all business conditions when conducting conditional business lines in accordance with the provisions of the Law on Investment and ensure that such conditions are maintained throughout the entire process business activities”
Business conditions are requirements that enterprises must have, or must do then when doing business in specific lines as shown by the business license; certificate of eligibility for business, practice certificate, certificate of professional liability insurance; legal capital requirements, or other requirements.) because, in fact, we often refer to all these papers as business licenses for short.
Conditions for transport business by car
Transport business by car means the performance of at least one of the main stages of transport activities (directly operating the vehicle, driving a vehicle; or deciding on transport charges) to transport passengers; goods on the road for the purpose of profit.
According to the provisions of Article 17 of Decree 10/2020/ND-CP on business and conditions for transport business by car: “Issuance of permits for transport business by auto:
1. The passenger transport business unit and the freight transport business unit must have a license for the automobile transport business (hereinafter referred to as the business license).
2. Contents of a business license include:
a) Name and address of the business unit;
b) Business registration certificate (Certificate of business registration) including Number, date, month, year, base authorities; c) Legal representative;
d) Types of business;
e) Business license-issuing agency.
3. The agency competent to issue business licenses is the Department of Transport of the provinces and centrally-run cities.”
Fines for unregistered cars
According to the provisions at points b, c, clause 7, Article 28 of Decree 100/2019, on penalties for violations of regulations on road transport, road transport support services; a fine of from 07 to 10 million dongs for individuals; from 14 to 20 million dongs for a transport business or transport support service organization that commits one of the following violations:
“A fine ranging from VND 7,000,000 to VND 10,000,000 shall impose on individuals, from VND 14,000,000 to VND 20,000,000 on organizations providing transport business or transport support services that commit one of the following acts. the following violations:
a) Transport business by car without a transport business license as prescribed;
b) Improperly performing the business form registered in the transport business license;”
Firstly, transport business by car without a transport business license as prescribed;
Secondly, improperly performing the business form registered in the transport business license…
Thus, the maximum fine for transporting business cars without registration is 20 million VND.
Business cars must have bags
According to Clause 1, Article 7 of Decree 10/2020/ND-CP; Automobiles trading in passenger transport under a contract must comply with a number of things as follows:
Firstly, the badge “contract vehicle” must fix and fix on the right side of the inside of the front glass of the vehicle; must post other information on the vehicle.
Secondly, the phrase badges made of reflective materials must be posted on the front and rear glass of the vehicle; with a minimum size of 06 x 20 cm. In addition, when transporting passengers, besides the documents required by law, the driver must also comply with the following regulations (except for other cases prescribed by law).
Thirdly, bring a paper contract of carriage of the signed transport business unit;
Finally, bring a list of passengers with the confirmation stamp of the transport business unit;
Besides sticking badges, before December 31, 2021; transport business vehicles must be changed to yellow plates; otherwise, an administrative fine of VND 8,000,000 will be imposed.
Related article
Cases of revocation of business registration certificates in Vietnam
Is a business registration certificate a business license?
Related questions
Super-long and super-important transportation: is the use of suitable cars for the transportation of all kinds of super- and super-important. When transporting, the driver must carry a road use permit. The business unit must bear the cost of road reinforcement at the request of the agency’s management department.
By agreement.
If there is no agreement in the contract of carriage for compensation for damaged, lost, or deficient goods due to the fault of the goods transport dealer, the compensation level shall not exceed 20,000 Vietnam Dong per kilogram of goods. Damaged goods for goods not packed in bags or bales or not exceeding 7,000,000 VND for a bag or bales of goods.
Buses must have a useful life according to the following regulations: – Distance over 300 kilometers: Not more than 15 years for automobiles manufactured to carry people; from January 1, 2016, it is not allowed to use cars with conversion functions; – Distance of 300 kilometers or less: Not more than 20 years for automobiles manufactured to carry people; no more than 17 years for autos converted from other vehicles into passenger cars before January 1, 2002.
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