Procedures to establish construction machinery rental company in Vietnam
Vietnam now in the stage of industrialization – modernization with many high-rise buildings around the country in general and urban areas in particular. To serve the construction of those buildings, people have started machinery rental in the construction industry. So, how do procedures to establish a construction machinery rental company done? This article of LSX legal firm will answer your question.
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Construction machinery rental industry
Leasing construction machinery means leasing machinery for the construction industry such as cranes, concrete mixers, tractors, concrete cutters, concrete shredders, etc. These machines are intended to serve and help people in the construction process, build up high-rise buildings. The construction machinery rental industry can include the following 4-level industry codes:
- Rental of machinery, equipment, and other tangible equipment without operator: code 7730
- Other specialized construction activities: code 4390
Besides, construction machinery rental is a common profession, not a conditional business line. The law does not prescribe specific conditions to operate such business. Therefore, when carrying out the establishment procedure, the owner does not require to prepare a specific license like the conditional business lines.
Things to know before the procedures to establish construction machinery rental company
To conduct a construction machinery rental company in the form of a company establishment, you need to note the following factors:
Business name
- The Vietnamese name of an enterprise shall contain two elements in order: The type of enterprise + The proper name.
- The proper name shall consist of letters in the Vietnamese alphabet, the letters F, J, Z, W, numbers, and symbols.
- The enterprise’s name shall be displayed at 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.
- The name of an enterprise must not coincide or cause confusion with another enterprise registered in the same province or city.
To check whether the enterprise name already exists or not, you can search it at the National Business Registration Portal.
Head office
The head office of the enterprise means the place of communication and transaction of the enterprise, locates in the territory of Vietnam. Also, have a defined address including house number, street name or name of commune, ward, township, district, town, provincial city, province, or central city; phone number, fax number, and email (if any).
Note: the business must not located in an apartment building or a dormitory.
Type of company
You can choose one of the following business types that suit your company:
- Single-member limited liability company established by an individual or an organization.
- Multi-member limited liability company established by a minimum of 2 members and a maximum of 50 members.
- Joint-stock company established by at least 3 founding shareholders.
- Sole proprietorship established by an individual.
- Partnership company established by at least 2 general partners.
Subjects prohibited to establish businesses
One of the factors to keep in mind when setting up a business is that you need to consider whether you are prohibited from establishing and managing a business in Vietnam or not. According to Article 17 of the Law on Enterprise 2020:
“2. The following organizations and individuals do not have the right to establish and manage enterprises in Vietnam:
a) State authorities, People’s armed forces using state-owned assets to establish enterprises to serve their own interests;
b) Officials and public employees defined by the Law on Officials and the Law on Public Employees;
c) Commissioned officers, non-commissioned officers, career military personnel, military workers, and public employees in agencies and units of the Vietnam People’s Army; commissioned officers, non-commissioned officers, and police workers in police authorities and units, except for those designated and authorized representatives to manage state-owned stakes in enterprises or to manage state-owned enterprises;
d) Executive officers and managers of state-owned enterprises prescribed in Point a Clause 1 Article 88 of this Law, except those who are designated as authorized representatives to manage state-owned stakes in other enterprises;
dd) Minors; people with limited legal capacity; incapacitated people; people having difficulties controlling their behaviors; organizations that are not juridical persons;
e) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, has the limited legal capacity or is incapacitated, are not able to control his/her own behaviors, are banned by the court from holding certain positions or doing certain works; other cases prescribed by the Law on Bankruptcy and the Anti-corruption Law.”
Charter capital
Charter capital does not have a maximum limit, so you can freely choose the amount of capital of your desired business regardless of the type of business you choose. Besides, you should note that for some conditional business lines, the government has a minimum charter capital requirement (legal capital).
However, the construction machinery rental is not a conditional industry that requires a minimum charter capital. So, you can optionally choose the amount of charter capital for your company.
Procedures to establish construction machinery rental company
Step 1: 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:
- Firstly, the application form submits to the business registration office requesting the certificate to establish a construction machinery rental company.
- Secondly, draft of company charter.
- Thirdly, list of founders.
- Fourthly, authenticated legal papers of members.
- Also, valid identification papers of the authorized representative and the legal representative.
- Legal capital confirmation document.
- Equally important, certificate of business registration (for organizations).
- Lastly, 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 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.
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Related questions
Under the provisions of the current Intellectual Property Law, the period of registration for trademark protection is usually from 12 months to 18 months, in which:
About 1 month to 2 months for receiving applications and appraising forms of trademark protection applications;
After about 2 months, the National Office of Intellectual Property announced the registration of trademark protection in the industrial property newspaper;
Finally, about 9 months to 12 months is the time for the National Office of Intellectual Property to consider and verify the contents of the application for protection registration, then grant the trademark protection title.
Firstly, Official charge for renewal of protection titles: VND 100,000/ 01 group of goods or services;
Secondly, Official charge for delayed renewal: renewal fee plus 10% for each month of delayed payment;
Thirdly, Fee for examination request for renewal of protection titles: VND 160,000/ 01 protection title;
Fourthly, Protection title usage: VND 700,000/ 01 group of goods or services;
Also, Fee for publication of the decision of the renewal of protection titles: VND 120,000/ 01 request
Lastly, Fee for recording decision of renewal or change of holders of protection titles into the National Register of Industrial Property: VND 120,000/ protection title.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Procedures to establish construction machinery rental company in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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