Nowadays many people want to take part in the economic market to make profits. Security firms have shown a potential future for persons with combat professions such as martial artists. However, opening a company that provides security services takes time to prepare the requirements and get the procedures done. In this article, LSX legal firm introduces: “Conditions to establish a security firm in Vietnam”
- Decree 96/2016/ND-CP
Conditions to establish a security firm
When establishing a security company, businesses will need to meet the following basic requirements and conditions:
General security and order conditions for all business sectors
- Business establishment registered, licensed, or established under the law of Vietnam.
- Conditions on fire prevention and fighting satisfied as referred to by the law on fire prevention and fighting.
- The person in charge of security and order of a business establishment must not belong to the following cases:
- Vietnamese citizens:
A person has been criminally prosecuted and is under the investigation, prosecution, or adjudication by a Vietnamese or foreign procedural body.
A person has a criminal record on infringing upon the national security or deliberate commission of a crime liable to a prison term of 03 years or more that has not yet expunged; or suspended from serving a prison sentence; or serving a non-custodial rehabilitation; or under the mandatory supervision, or the prohibition from residence or holding certain position or running a business sector subject to security and order conditions upon the court’s decision.
Persons liable to the compulsory educational measures in the community; waiting for a decision on the imposition of an administrative penalty granted; addicted to drug; suspended from compliance with a decision on serving a sentence in a correctional institution or rehabilitation center; or has faced an administrative penalty but the period for being considered as not yet facing an administrative penalty is not satisfactory as regulated;
2. Vietnamese people who hold foreign passports and reside abroad, and foreigners:
A person is not permitted by a competent authority of Vietnam to stay in Vietnam.
Security and order conditions for providing security service
- Firstly, must be an enterprise.
- Secondly, the person in charge of security and order of the security service provider must possess a three-year associate degree or higher, and within 24 immediately preceding months, did not hold the same position at another security service provider that has a Certificate of satisfaction of security and order conditions revoked for an indefinite period (except for cases prescribed in Clause 2 Article 22 of Decree 96/2016/ND-CP).
- Thirdly, a Vietnamese security service provider sets up a joint venture with a foreign security service provider:
The Vietnamese security service provider is only allowed to set up a joint venture with a foreign security service provider in the case where it requires the investment in machinery and/or technical facilities provided that the foreign security service provider shall only contribute capital to purchase machinery and/or technical facilities to serve security works.
- Fourthly, a foreign security service provider contributes capital to a Vietnamese security service provider:
- It must be an enterprise that has been providing security services for at least 05 consecutive years;
- The representative of the capital contributed by the foreign security service provider has never faced any administrative penalty from warnings or higher levels for violations against regulations on security service by a competent law enforcement agency in a foreign country where security service is provided;
- The capital amount contributed by a foreign security service provider is only spent on the purchase of machinery and/or technical equipment to serve security works. The minimum capital contributed by the foreign security service provider is USD 1,000,000 (one million US dollars). The valuation of machinery/technicbodyal equipment shall be conducted by the competent valuation authority at the district level or higher, and the security service provider must pay valuation fees.
Dossiers to register a security firm
Dossiers of security company establishment include:
- An application for a license to establish a company.
- List and information of shareholders or members of the company.
- Security company charter
- Identity card, passport (copy). Or enclosed with the business registration certificate and establishment decision.
- Authorization letter in case of authorizing another person to carry out the registering procedure.
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.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
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.
Finally, hope this article is useful for you to answer the question about “Conditions to establish a security firm in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: email@example.com
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The person in charge of security and order 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.
Deposit confirmation from the bank of at least 2 billion VND, maintained throughout the operation.
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.
Having a stable, long-term office – the lease contract has been notarized for at least 1 year or more.
Certificates of satisfaction of security and order conditions are issued by competent police authorities to business establishments that engage in business sectors mentioned in Article 3 of Decree 96/2016/ND-CP.