What accountants need to do in a newly established company in Vietnam?

Establishing a company now becoming a trend, so a lot of start-ups appear in the market. On the other hand, the establishment of a company of any type must comply with the order and procedures prescribed by the Law on Enterprise 2020. Accordingly, when newly established, there are certain tasks that the accounting department needs to perform. So what should accountants do for a new company? To answer this question, LSX legal firm would like to inform you: ” “What accountants need to do in a newly established company in Vietnam?”

Legal grounds

• Decree 130/2018/ND-CP
• Decree 22/2020/ND-CP

Submit initial tax return

The initial tax return means a very important step for newly established businesses.

Dossiers include:

• Declaration of registration of accounting form and type of used invoice;
• Decision on appointment of director;
• Decision on appointment of accountant;
• Depreciation method of fixed assets (fixed assets);
• License fee declaration (can submit online);
• Registration form for exchanging information electronically.

Besides, the dossier shall be submitted to the Tax Department where the enterprise’s head office is located.

Open bank account and purchase digital signature

When receiving a business registration certificate, businesses need to register a bank account (to pay taxes electronically) and purchase a digital signature to file tax returns online.

Clause 6, Article 3 of Decree 130/2018/ND-CP stipulates that a digital signature is a form of electronic signature created by transforming a data message using an asymmetric cryptographic system, whereby, the person who obtained the original data message and the signer’s public key can be precisely determined:

• The above transformation is generated with the exact same private key corresponding to the public key in the same key pair;
• Content integrity of the data message since the above transformation is performed.

Submit license fee declaration

About the time to declare license fees:

• Declare the license fee once when the company first performs business operations or on the last day of the month of starting business operations.
• In case the company has just established a business establishment but has not yet started production and business operations, then it must declare the license fee within 30 days from the date of issuance of the business registration certificate or the investment registration certificate and tax registration.

License fees:

• According to the provisions of Clause 8, Article 3 of Decree 22/2020/ND-CP: Newly established organizations (granted a new tax code, new enterprise code) will be exempt from license fees in the first year of establishment ( from January 1 to December 31).
• However, from the second year onwards, the enterprise must pay the license fee, the license fee rate is calculated as follows:

1. Organizations with charter capital or investment capital over 10 billion VND: 3,000,000 (three million) VND/year;
2. Organizations with charter capital or investment capital of 10 billion VND or less: 2,000,000 (two million) VND/year;
3. Also, branches, representative offices, business locations, non-business units, and other economic organizations: 1,000,000 (one million) VND/year.

Select invoice

Based on Clause 2, Article 3 of Circular 39/2014/TT-BTC (amended by Clause 1, Article 5 of Circular 119/2014/TT-BTC)

Value-Added Tax (VAT) invoice

If the enterprise declares and calculates VAT by the deduction method, it shall use VAT invoices in the following activities:

• Domestic sale of goods and provision of services;
• International transportation activities;
• Exports into non-tariff zones and export cases.

Sale invoice

• If the enterprise declares and calculates VAT by the direct method when selling goods and services in the domestic market, exporting into non-tariff zones, and other export cases, then it shall use the sale invoice.
• Enterprises go to the Tax Department directly managed to carry out procedures for purchasing invoices.

Select the accounting mode and method of depreciation of fixed assets

Choosing an accounting mode for your business

• Firstly, accounting regime according to Circular 200/2014/TT-BTC: Applicable to enterprises of all fields and all economic sectors.
• Secondly, accounting regime according to Circular 133/2016/TT-BTC: Applicable to small-sized and medium-sized enterprises (including micro-sized enterprises).
• Thirdly, accounting regime according to Circular 132/2018/TT-BTC: Applied to micro-sized enterprises, including micro-sized enterprises paying corporate income tax according to the method of calculating taxable income and the percentage proportionate of sales of goods and services.

Select the method of depreciation of fixed assets

In particular, there are 03 methods of depreciating fixed assets.

• Firstly, the straight-line method of depreciation.
• Secondly, the adjusted declining balance method of depreciation.
• Lastly, depreciation method according to quantity and volume of products.

Social insurance and union fund

When signing a contract with an employee, the enterprise must pay compulsory insurance for the employee.
After completing the registration procedures to participate in social insurance, contact the district-level Confederation of Labor where the enterprise’s headquarters is located to pay trade union fees.

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.

Related article

• Procedures for depositing money into a bank account in Vietnam
• Procedures for setting up an accounting service business in Vietnam
• Can the chief accountant concurrently be a member of the Directory in Vietnam?

Related questions

Contact LSX

Finally, hope this article is useful for you to answer the question about “What accountants need to do in a newly established company in Vietnam?”. If you need any further information, please contact  LSX Law firm: +84846175333 or Email: [email protected]

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