Procedures to establish a security company in Vietnam

Currently, security service attracts the market with the need of ensuring the safety of assets and people as well as managing the order inside and outside of agencies. Therefore, the establishment of security service companies has become more and more popular. So, what are the conditions and procedures to set up security service businesses? In this article, LSX legal firm gives you the: “Procedures to establish a security company in Vietnam”

Legal grounds

• Law on Enterprise 2020
• Decree 96/2016/ND-CP

Conditions to establish a security company

Capital: 

• Deposit confirmation from the bank of at least 2 billion VND, maintained throughout the operation.

Human resources:

• The person in charge of the company must have a college degree or higher. Not responsible for the security and order of a security service business that had its Certificate of Qualified security and order revoked in the preceding 24 months. Also, having full of civil capacity and not prohibited by the law to manage the security business.
• Those who have worked for other security companies whose certificates revoked must further satisfy the following conditions: Did not manage or hold a key position of the company that had its business registration certificate revoked in the last 3 consecutive years.

Infrastructure:

• Having a stable, long-term office – the lease contract has been notarized for at least 1 year or more.

Vietnamese security service business in a joint venture with a foreign company,

A Vietnamese security service business may only enter into a joint venture if it needs investment in machinery and technology for the security services. On the other hand, the joint venture may only made in the form of a foreign business contributing capital to purchase machinery and technology.

A foreign business contributes capital with a Vietnamese security service business

• The enterprise must operate in the security service business for at least 5 preceding years.
• Equally important, the representative of the capital contribution of the foreign business has not been sanctioned for violations related to the security service business from a warning or higher.
• As mentioned above, the contributed capital of the foreign business may only use to purchase technical machinery and equipment for security service. The contributed capital of the foreign business establishment is at least USD 1,000,000. The valuation of machinery and equipment shall carried out by the competent state management agency in charge of prices at the provincial level or higher. The security service business pays the valuation fee.
• In addition, enterprises may only use trained security service personnel who has a certificate of professional protection.

Application dossiers for issuance of new certificates of satisfaction of security and order conditions according to Decree 96/2016/ND-CP

1. The application form for issuance of Certificate of satisfaction of security and order conditions made by the business establishment (Form No. 03 stated in the Annex herein).

2. Legitimate copy of any of the following documents:

a) Business registration certificate; Certificate of enterprise registration, Certificate of investment registration, Certificate of operation registration of enterprise’s branch or affiliate, Certificate of registration of cooperative or cooperative union Certificate of registration of branch or business location of cooperative or cooperative union; Operation License of competent authority of Vietnam; Certificate of registration of household business; Written approval for the establishment or operations enclosed with written notice of tax code of for-profit administrative unit;

…

3. Legitimate copies of documents proving the satisfaction of fire safety conditions at business locations and warehouses, consisting of:

a) The written record of the acceptance of fire safety conditions if the applicant is any of the business establishments in the list stated in Annex IV of the Decree No. 79/2014/ND-CP dated July 31, 2014 detailing the implementation of certain articles of the Law on fire prevention and fighting and the Law on amendments to certain articles of the Law on fire prevention and fighting

…

4. The curriculum vitae (Form No. 02 stated in the Annex herein), enclosed with the Criminal record statement or Individual declaration (Form No. 02b stated in the Annex herein), of the person in charge of security and order of the business establishment. To be specific:

a) The curriculum vitae and the criminal record statement (except for officials of state agencies, the armed forces, political organizations or socio-political organizations) of the person in charge of security and order, who is the holder of Certificate of satisfaction of security and order conditions, are required if he/she is a Vietnamese citizen residing in Vietnam;

…

Procedures to establish company a security company

Step 1: Prepare dossiers

• The application form submits to the business registration office requesting the certificate to establish a security company.
• Draft of company charter.
• List of founders as well as members.
• 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).
• …

Step 5: Apply for a Certificate of satisfaction of security and order conditions

Security service companies must to have this type of certificate to goes 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.

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