Procedures to establish electronic components company in Vietnam

Currently, the explosion of technology leads to the demand for using and installing electronic components of consumers more and more strongly. Accordingly, trading in electronic components also has certain potentials and difficulties. To establish a company operating business in the electronic components market, owners have to carry out certain procedures. So, in this article LSX legal firm would like to give you: “Procedures to establish electronic components company in Vietnam”

Legal grounds

• Law on Enterprise 2020
• Consolidated text 902/VBHN/-BKHDT 2019
• Circular 02/2019/TT-BKHDT

Manufacturing electronic components

Each electronic component has its own unique characteristics and roles. Currently, in any machine system in factories or even in household electrical systems, we can see the presence of these electronic components. Accordingly, we can understand that an electronic component contained in a separate component with two or more electrical connectors. These components will be connected together, usually by soldering to a printed circuit board, to create an electronic circuit (a separate circuit) with a specific function.
Statistics of the Department of Heavy Industry under the Ministry of Industry and Trade show that, in the field of manufacturing electronic components, domestic enterprises have met 30-35% of the demand for components for household electronics. Besides, supplying electronic components to other downstream sectors is still quite low: Informatics and telecommunications only reach 15%, specialized high-tech electronics only reach 5%, the localization rate of domestic electronic enterprises in only 12%, and the rest imported…

The right to establish company

The current law allows individuals and organizations to freely choose business lines for their businesses within the scope of industries and professions that the law does not prohibit.

“Article 7. Rights of enterprises

Every enterprise has the right to:

1. Freely engage in any business line that is not banned by law.

2. Freely run the business and choose a type of business organization; choose business lines, area of operation, and type of operation; change the scale of business and business lines.”

Besides, subjects must not prohibited from establishing and managing a business in Vietnam. In particular:

“Article 17. The rights to establish, contribute capital, buy shares/stakes and manage enterprises

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,…

…”

Is electronic components manufacturing a conditional business?

The law stipulates 243 conditional business lines such as producing seals, trading in supporting tools (including repair), trading in equipment, camouflage software used for recording, recording, positioning, trading in military equipment,… To conduct the business of these lines, businesses have to satisfy certain conditions prescribed by the law.

However, electronic components business does not belong to the group of conditional business lines. From that, the electronic components manufacturing service performs like an ordinary service industry. So, since the law does not prescribe specific conditions, nor does it belong to the group of conditional business services, the owner not required to prepare specific papers when carrying out the establishment procedure.

Business lines‘ codes

You can refer to some codes below:

• 26: Manufacture of electronic products, computers, and optical products.
• 26100: Production of electronic components.
• 26400: Producing household electronic products
• 27320: Manufacture other electrical and electronic wires and cables.
• 46520: Wholesale of electronic and telecommunications equipment and components.
• 26600: Producing radiation equipment, medical electronic equipment, electrotherapy.
• …

Procedures to establish an electronic components company

Step 1: Prepare dossiers

• The application form submits to the business registration office requesting the certificate to establish an electronic components 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.
• Besides, 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. Then, 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 all, 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

Contact LSX

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