The demand for cars increases day by day, but not everyone can afford a private car. Due to that, the market for car rental services has developed strongly these days. Therefore, the car rental business has the potential to grow and attract many investors. To facilitate the business, consider to establishing a car rental company is a reasonable choice. In this article, LSX legal firm will give you information regarding: “Procedures to establish a car rental company in Vietnam”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Notes to establish a car rental company
- Capital: Founders establish businesses to seek profit, so the business must have capital. Capital of enterprises is formed from different sources. companies must declare the level of charter capital in accordance with the provisions of the law when doing business in the car rental service.
- Name of the company: The name must not overlap or similar to other businesses. The proper name shall consist of letters in the Vietnamese alphabet, the letters F, J, Z, W, numbers, and symbols. Also, displays the headquarters, branches, representative offices, and business locations of the enterprise and printed or written on transaction documents, records, and printed materials published by the enterprise.
- Type of company: 4 common types of companies can be choose to operate car rental business are partnership, limited liability company (single-member and multiple-members), sole proprietorship, and joint-stock company.
- Also, address of the business: The company must have a specific, clear, and accurate address. The head office of the business cannot be an apartment building or a dormitory.
- Legal representative: can be one or more depending on the needs of the company. When submitting a business registration application, the company must provide personal information along with the title of the representative. In case the legal representative is hired by the company, it is necessary to provide a labor contract and appointment decision.
- Business registration code: According to Decision No. 27/2018/QD-TTg, the car rental industry code is 77101.
Do I need a license to establish a car rental company?
Since the car rental business is not part of the road transport business, the company does not need to apply for a license to operate car transport business.
Also, this industry is not a conditional business line as prescribed by law. So, the company only needs a Business Registration Certificate to operate businesses.
In addition, when going into business operations, enterprises must ensure that the cars used for business meet the traffic conditions of motorized vehicles specified in Article 53 of the Law on Road Traffic 2008.
Procedures to establish a car rental company
Step 1: Prepare dossiers
At this step, for each type of company, the requirements for the profile that you need to prepare differs. However, in general, no matter what type of company, you need to prepare the following basic documents:
- The application form submits to the business registration office requesting the certificate to establish a car rental company.
- Draft of company charter.
- List of founders.
- Authenticated legal papers of members.
- Valid identification papers of the authorized representative and the legal representative.
- Legal capital confirmation document.
- Certificate of business registration (for organizations).
- Investment registration certificate for foreign investors.
Step 2: Submit dossiers
Submit the application at the Business Registration Office of the Department of Planning and Investment at the province level where you plan to locate the head office of your Company.
Currently, there are two forms to submit an application:
- Register directly: apply at the “one-stop” department of the Business Registration Office. However, in Hanoi, this method is no longer applied.
- Online business registration: submit your application on the National Business Registration Portal (Address: https://dangkykinhdoanh.gov.vn). After the online application is valid, you will have to go directly to the “one-stop” department to return the scanned copy (hard copy) when submitting it online. However, this method is relatively complicated, requiring you to have skills and knowledge about registering a business account.
Once you have submitted your application, you will receive a receipt for your application. The usual processing time for applications will be 3 working days.
Step 3: Receive result
According to the schedule on the appointment, you return to the “one-stop” department of the Business Registration Office to receive the results. There are two possible scenarios:
- Dossiers valid: You will receive a Certificate of Business Registration as a result and a notification to the tax authorities.
- In contrast, dossiers invalid: The Business Registration Office will have a document instructing you to amend the dossiers in accordance with the provisions of the law. After the amendments and supplements to your application according to this guide, then resubmit your application as in Step 2.
Step 4: Post-establishment procedures.
Receiving a Business Registration Certificate is just the first step in putting your company into operation. After that, you have to do the following series of procedures:
- Notice the use of the company’s seal sample.
- Bank account notice (if your company registers a bank account).
- Tax procedures such as license declaration and payment of license fees, Tax on corporate headquarters inspection,…
- Trademark protection (if you need it).
- …
After carrying out these procedures, your Company can go into operation.
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 for transferring investment projects under the Law on Investment 2020
Procedures for adjusting investment certificates according to Vietnam regulations
Vietnamese procedures to establish a Multi-member LLC
Related questions
The business owner sends a set of applications for registration of auction operations to the Department of Justice where the company head office is located. Then pay the fee as prescribed by law.
Within 10 working days after receiving the valid application, the Department of Justice shall grant an operation registration certificate to the auction company.
In case of refusal, the reason must be notified in writing. Enterprises that are refused to issue an operation registration certificate have the right to complain or initiate a lawsuit.
The auction company may operate from the date of issuance of the Operation Registration Certificate.
-An auction enterprise is established, organized, and operates in the form of a Sole proprietorship or a Partnership.
-An auction company (as Sole Proprietorship) whose owner is an auctioneer, concurrently the director of the enterprise. On the other hand, an auction partnership has at least one member who is an auctioneer, and the General Director or Director of the auction partnership is an auctioneer.
-Having headquarters, facilities, and necessary equipment to ensure asset auction operations.
So, the auction company is only allowed to be established in the form of a proprietorship or partnership. Therefore, it is necessary to choose one of that two forms to establish. The establishment must meet the establishment conditions corresponding to the type of business you choose according to the Law on Enterprise 2020.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Procedures to establish a car rental company in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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