Many foreign investors face difficulties when setting up a business because they do not know what procedures to follow. Some investors only pay attention to business without paying attention to tax declaration procedures, capital contribution, investment reports, etc., leading to administrative violations on foreign investment and being handled for violations. LSX Law Firm with experience in accompanying foreign investors would like to consult in detail the procedures after foreign investors establish a company in Viet Nam as follows.
Enterprise Law 2020
Procedures after foreign investors establish a company
Buying electronic digital signature to make electronic tax payment
A foreign-invested company, after its establishment, orders a digital signature and registers it with a digital signature certification service provider to declare and pay taxes electronically.
Enterprises can use legal service of LSX Law firm to get the best digital signature fee and best support service.
Opening a business bank account and notifying the bank account to the Department of Planning and Investment
A foreign-invested company with a current account must open a direct investment capital account accordingly the provisions of Circular 06/2019/TT-NHNN guiding foreign exchange management for foreign direct investment activities. Foreigners into Vietnam issued by the Governor of the State Bank of Vietnam.
– Open a bank account for business:
Procedures shall be carried out by the legal representative of the enterprise at the bank selected by the enterprise. Dossier to prepare for registration of opening a bank account normally includes:
+ Firstly, 01 notarized copy of “Certificate of enterprise registration”;
+ Secondly, 01 notarized copy of “ID card” of the legal representative stated on the license;
+ Lastly, 01 notarized copy of “Notice on publication of enterprise seal information”;
Bring the business seal when you come to do the procedures or authorize LSX Law firm to assist in the implementation; Besides, enterprises combine registration of digital signature for electronic tax payment and tax reporting via the Internet and registration for electronic tax payment from a bank where the enterprise has registered to open an account.
– Notify the bank account with the Department of Planning and Investment
The bank account notification file includes:
– Notice of change of business registration content;
– Legal service provision contract (Authorized contract)
Implementation time: 04-05 working days.
Applying the business license tax declaration and pay the business license tax
According to Decree 22/2020/ND-CP amending some contents on license tax, businesses established after February 25, 2020 are exempt from license tax 2020.
Regarding the license tax payment declaration: Before January 30 of the year following the year of business operation. To avoid forgetting to file a tax return, businesses should prepare a tax return as soon as they run business.
Making company signs
After establishment, the company needs to hang a sign at the company’s headquarters, the company sign must show information about the company’s name, address, and phone number. Avoid the case that when the tax authority comes to inspect the headquarters, it will notify the business that it is not operating at the head office and will not allow the enterprise to register for the use of invoices.
In addition, for acts of not hanging signs at the head office of the enterprise: a fine of from 1,000,000 VND to 3,000,000 VND.
Besides, foreign-invested enterprises rent offices in serviced office buildings, usually the buildings will support making electronic signs, businesses contact the building owner for instructions on how to hang signs in accordance with the regulations, building regulations and legal regulations.
Tax return for the first time
Enterprises perform the above steps, then contact the Tax Department to make the initial tax declaration.
Register to issue e-invoices
When there is a need, the foreign-invested company should contact the company with the function of setting up electronic invoices to create electronic invoices. Then notify the issue of electronic invoices.
Dossier for issuing e-invoices includes:
- Firstly, the company’s decision on the adoption of e-invoices;
- Secondly, electronic invoice form Invoices are used within 02 days from the date of issuance notice after the invoice form has been displayed on the invoice information lookup page: http://tracuuhoadon.gdt.gov.vn
Tax declaration and tax payment
Foreign-invested enterprises shall declare and pay value added tax quarterly, declare and pay corporate income tax, declare the use of quarterly invoices, and make year-end tax reports. The year-end financial statements of foreign-invested enterprises are required to be audited.
Notes on capital contribution
Foreign investors must make capital contribution by transferring funds to the opened direct investment capital account. Mandatory form of capital contribution is a transfer which can be in foreign currency or Vietnam Dong.
The time limit for capital contribution is recorded on the Investment Registration Certificate; normally the time limit is 90 days from the date of issuance of the certificate business registration. In case of exceeding this time limit, investors will not be able to contribute capital, investors must carry out procedures for adjusting and inspecting and sanctioning violations of regulations on foreign investment in Vietnam.
After being granted a capital extension; they shall make capital contributions accordingly regulations within the extended time limit.
Notes on investment activity reports
Periodically, investors must submit investment reports: monthly, quarterly, annually. Make an online report at website: dautunuocngoai.gov.vn
The access account is issued with the Investment Registration Certificate. In addition, the investor must submit a report on the trader exercising the right to export, import and distribute if any of these fields are active to the Department of Industry and Trade.
Hope this article “Procedures after foreign investors establish a company in Viet Nam” is useful for you! If you have any questions, please contact Lawyer X for quick and best legal services: 0833102102.
Accordingly the provisions of Decree 31/2021/ND-CP, which officially took effect from March 26, 2021, stipulates conditional business lines for foreign investors. Therefore, when a foreign investor establishes a foreign-invested company, if he/she has registered conditional business lines, it must satisfy the conditions specified in the Trade Agreements, Commitment to WTO… and according to the provisions of Vietnamese law
According to the provisions of Decree 31/2021/ND-CP officially effective from March 26, 2021; the business lines “forbidden” by foreign investors; or rather foreign investors have not access to the Vietnamese market; including 25 business lines.
Foreign-invested enterprises shall declare and pay value added tax quarterly; declare and pay corporate income tax, declare the use of quarterly invoices, and make year-end tax reports.