In fact, the two concepts “Certificate of Business Registration” and “Business License” are often equated, even many businesses do not fully understand the nature of the two types of legal documents. In this article, LSX Lawfirm would like to discuss with customers to clarify these two types of documents according to the following article:
Law on enterprises 2020
Law on commercial 2005
“Certificate of Enterprise Registration” means a physical or electronic document bearing enterprise registration information provided for the enterprise by a business registration authority.
Business license is a type of paper competent authority grant to enterprises with conditional business lines. Besides; Usually issued after the Competent authority granted enterprise an enterprise registration certificate.
Is a business registration certificate a business license?
The legal meaning
Certificate of business registration:
+ The certificate of the state public administrative agency
+ It is the obligation of the State to protect the ownership of business names
+ Is the permission of the State management agency
+ Is the right to allow (mechanism of asking – giving).
Firstly; Certificate of business registration:
+ Business lines not banned from business investment
+ The name of the enterprise is placed in accordance with the provisions of the Law on Enterprises
+ Valid business registration documents
+ Finally; Fully pay the business registration fee in accordance with the law on fees and charges.
Secondly; Business license:
+ Enterprises must meet the conditions to conduct business in the respective conditional lines, as shown by the business license, then certificate of eligibility for business, practice certificate, certificate of professional liability insurance, legal capital requirements or other requirements.
+ These conditions can be in terms of facilities, then equipment, personnel, legal capital, practice certificates, etc.
– Firstly; Certificate of business registration; there is no time limit stated in the business registration certificate; then usually decided by the enterprise
– Secondly; Business license: Usually; each type of business license has a specific term a competent state agency allowed wrote on the license.
Thus, the business registration certificate and the business license are two different documents that in fact they confuse.
According to the analysis above, there are some striking differences between these two types of legal documents. In order to avoid confusion leading to inadequate implementation of procedures for doing business; especially for conditional business lines; an enterprise is granted an enterprise registration certificate and must apply for a business license for that industry; the conditional business in which he intends to operate.
Contact LSX Lawfirm
LSX Lawfirm would like to thank customers for their interest in using our company’s services.