Procedures to establish company manufacturing household appliances in Vietnam

The household appliances business is no longer a new concept for entrepreneurs because of the potential market, with specific characteristics aimed at the needs of customers who always want to optimize their family’s life. When it comes to business, the issue of establishing a company may confuse people with the complicated procedures. So, what are the specific conditions for establishing a household appliance manufacturing company and its establishment procedure? In this article, LSX legal firm provides you: “Procedures to establish company manufacturing household appliances in Vietnam”

Legal grounds

• Law on Enterprise 2020
• Decree 47/2021/ND-CP

The concept of “Company”

A company means the association of two or more people (individuals or legal entities) by a legal event in which the parties agree to use their assets or abilities to carry out activities to achieve a common goal. Enterprise: a concept that people often use to replace “company”. However, this can be considered a systematic mistake, which is deeply rooted in the thought of each individual, that mentioning the company is referring to an enterprise, people always equate company and business as one.

Clause 10, Article 4 of the Law on Enterprises 2020 defines enterprises as follows:

“Article 4. Definitions

10. “enterprise” means an organization that has a proper name, assets, premises, is established or registered in accordance with law for business purposes.”

From a linguistic point of view, an enterprise legally established as an economic organization with its own name, head office, and operating for profit-making purposes.

Currently, Vietnam has 7 main types of enterprises:

• Sole proprietorship
• State-owned enterprise
• Cooperatives
• Joint-stock company (JSC)
• Limited liability company (LLC)
• Partnership
• Joint-venture company

Accordingly, only joint-stock companies and limited liability companies are considered companies, the rest are other types of enterprises.

Therefore, it can be understood that the company is a subset of enterprises, has a part of the basic characteristics of the enterprise, such as:

• The owner’s assets are completely separate from the company;
• The owner has limited liability to the company;
• Ability to transfer shares and contributed capital;
• Centralized and unified management;
• Having legal status.

Company manufacturing household appliances

Household appliances manufactured as goods and products (tangible items) with the main purpose of serving the daily needs of families. Besides, household goods are also an important production field in the economy of Vietnam as well as in other countries around the world. 

Household appliance manufacturing services include the following specific industries:

• Laundry equipment: washing machine, dryer, ironing machine…
• Kitchen equipment.
• Conditioner equipment: electric fan, fan heater, humidifier, air conditioner, air conditioner,…
• Cleaning equipment: vacuum cleaner, floor polishing machine, …
• Lighting equipment: electric lamps, table lamps,…
• Cosmetics.
• Electronic consumables: TV, mobile phone,…
• Decorate products

On the other hand, the Law on Enterprise restricts a number of business lines with conditions to operate. However, the production of household appliances is not included, so the service of producing household appliances is a common service industry.

Therefore, when carrying out the establishment procedure, the law does not require the owner to prepare specific documents like the conditional business lines.

Procedures to establish company manufacturing household appliances

Step 1: Prepare basic information

• Capital: Founders establish businesses to seek profit, so the business must have capital. Capital of enterprises is formed from different sources. Enterprises must declare the level of charter capital in accordance with the provisions of the law when doing business in the production of household appliances.
• 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 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.
• Equally important, business lines: There are many specific business lines in the household appliance manufacturing industry. Therefore, founders should consider carefully before registering the business line to avoid problems or difficulties in the process of operating the company in the future.

Step 2: Prepare documents to register the business

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 company manufacturing household appliances.
• 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.

Reference to the registering application for types of companies

Firstly, Application for registration of a joint-stock company

1. The enterprise registration application form.

2. The company’s charter.

3. The list of founding shareholders; the list of shareholders that are foreign investors.

4. Copies of:

a) Legal documents of founding shareholders and shareholders that are foreign investors who are individuals and legal representatives;

b) Legal documents of shareholders that are organizations, documents about the designation of authorized representatives; legal documents of authorized representatives of founding shareholders, and shareholders that are foreign organizations.

Legalized copies of legal documents of the members that are foreign organizations.

c) The Certificate of Investment Registration of foreign investors as prescribed by the Law on Investment.

Secondly, Application for registration of a limited liability company

1. The enterprise registration application form.

2. The company’s charter.

3. The list of members.

4. Copies of:

a) Legal documents of members who are individuals and legal representatives;

b) Legal documents of members that are organizations, documents about the designation of authorized representatives, and their legal documents.

Legalized copies of legal documents of the members that are foreign organizations.

c) The Certificate of Investment Registration of foreign investors as prescribed by the Law on Investment.

Thirdly, Application for registration of a partnership

1. The enterprise registration application form.

2. The company’s charter.

3. The list of partners.

4. Copies of legal documents of the partners.

5. Copies of the Certificate of Investment Registration of foreign investors as prescribed by the Law on Investment.

Also, Application for registration of a sole proprietorship

1. The enterprise registration application form.

2. Copies of legal documents of the sole proprietorship’s owner.

Step 3: 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 4: 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 5: 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.

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