RETAIL BUSINESS LICENSE FOR FOREIGN-INVESTED ENTERPRISES IN VIETNAM
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Thuy Ngoc Law Firm, with many years of experience in the field of investment consulting and licensing for foreign-invested enterprises, is proud to provide a comprehensive, professional and fast service, helping foreign investors feel completely secure when conducting activities in Vietnam.
1. WHAT IS A RETAIL BUSINESS LICENSE?
A retail business license (often referred to as a Business License) is a document issued by a competent state agency of Vietnam to a foreign-invested enterprise to allow the foreign-invested enterprise to carry out the following activities:
- Retail sale of goods to Vietnamese consumers;
- Open a store, supermarket, distributor, or shopping mall;
- Sales through e-commerce platforms, websites or other online forms.
According to Vietnamese law, all foreign-invested enterprises operating in the field of retail distribution of goods in Vietnam must have this Business License, otherwise they will be subject to administrative sanctions according to regulations.
2. WHAT IS RETAIL SAILE OF GOODS?
Retail sale of goods refers to the activity of selling products and goods directly to end consumers for their personal use or household consumption, rather than for resale or further production
Simply put, retail is the final stage in the distribution chain of goods, where goods are transferred from businesses, stores or supermarkets to consumers.
Examples of retail operations:
- Convenience stores sell drinks and food to retail customers;
- Supermarket selling household goods, cosmetics, food;
- Fashion stores sell clothes and shoes to buyers;
- E-commerce website sells products online to consumers.
According to Vietnamese law, retailing goods is one of the conditional business lines for foreign-invested enterprises. Foreign-invested enterprises are only allowed to retail goods after being granted a Retail Business License.
3. IN WHICH CASES IS IT NECESSARY TO APPLY FOR A RETAIL BUSINESS LICENSE IN VIETNAM?
According to the provisions of Vietnamese law, when performing one of the following activities, a foreign-invested company must carry out procedures to apply for a Retail Business License:
- Implement the right to distribute retail goods.
- Exercise the right to import and wholesale distribution of goods such as oil and lubricants if performing one of the following activities:
- Production of lubricants and grease in Vietnam;
- Manufacture or be licensed to distribute in Vietnam machinery, equipment, and goods that use special types of lubricating oil and grease.
- Exercise the right to distribute and retail goods such as rice; sugar; recorded items; books, newspapers and magazines to foreign-invested economic organizations that have retail establishments in the form of supermarkets, mini-supermarkets, and convenience stores for retail sale at those establishments.
- Providing logistics services; except for logistics service sub-sectors in which Vietnam has committed to opening the market in international treaties of which Vietnam is a member;
- Leasing of goods, excluding financial leasing; except for leasing of construction equipment with operators;
- Providing trade promotion services, excluding advertising services;
- Providing trade intermediary services;
- Providing e-commerce services;
- Providing services for organizing bidding for goods and services.
4. CONDITIONS FOR FOREIGN ENTERPRISES TO BE GRANTED A LICENSE TO DO RETAIL SAILE OF GOODS IN VIETNAM
a) In case foreign investors are from countries or territories participating in international treaties of which Vietnam is a member and have committed to opening the market
- Satisfy the market access conditions in international treaties of which Vietnam is a member;
- Have a financial plan to carry out the activities for which a Business License is requested;
- No overdue tax debt if established in Vietnam for 01 year or more.
b) In case the foreign investor does not belong to a country or territory participating in an international treaty of which Vietnam is a member
- Have a financial plan to carry out the activities for which a Business License is requested;
- No overdue tax debt in case of being established in Vietnam for 01 year or more;
- Comply with the provisions of specialized laws;
- Suitable for the level of competition of domestic enterprises in the same field of operation;
- Ability to create jobs for domestic workers;
- Ability and level of contribution to the state budget.
5. WHAT DOES THUY NGOC LAW FIRM'S RETAIL BUSINESS LICENSE SERVICE INCLUDE?
The service of applying for retail business license of Thuy Ngoc Law Company Firm is designed as a complete and flexible package, helping foreign-invested enterprises save maximum time, cost and effort.
Thuy Ngoc Law will perform the following tasks:
- Comprehensive advice on legal regulations and business licensing conditions;
- Consulting customers on preparing necessary documents and information, preparing documents, translation, consular legalization (if any);
- Prepare application documents for a Retail Business License according to regulations;
- Representative submits application to competent authority of Vietnam;
- Monitor and work with state agencies, supplement documents (if required);
- Receive results and deliver Business License to customers;
- Guide customers to carry out legal procedures arising after applying for a Retail Business License;
- Support legal issues arising during business operations for customers.
All are done in a professional, confidential and timely manner.
6. DOCUMENTS NEEDED TO APPLY FOR A RETAIL BUSINESS LICENSE IN VIETNAM
When applying for a Retail Business License, customers usually have to prepare the following documents and information:
- Enterprise registration certificate;
- Investment registration certificate (if any).
- Documents proving full capital contribution.
- Audited financial statements of the most recent year (if any).
- Lease contract or documents proving the right to use the business location.
- Business plan.
- Financial plan.
- Human resource plan.
- Consumer market.
- Socio-economic impacts.
- Authorization letter for Thuy Ngoc Law Firm to carry out procedures on behalf of the enterprise.
- Other information, depending on the specific case.
7. SERVICE FEE FOR RETAIL BUSINESS LICENSE IN VIETNAM OF THUY NGOC LAW FIRM
Service fees depend on: Company size, business items, number of business items.
The total service fee will be from 35,000,000 VND.
8. PROCESSING TIME FOR OBTAINING A RETAIL BUSINESS LICENSE IN VIETNAM
The estimated processing time for obtaining a Retail Business License is as follows:
|
STT |
Work to be done |
Implementation time (working day) |
|
Step 1 |
Prepare and draft documents |
05 - 07 |
|
Step 2 |
Submit application |
03 - 05 |
|
Step 3 |
Appraisal of documents at competent authority |
10 - 15 |
|
|
Total estimated time |
20 - 30 |
9. PROCEDURE FOR IMPLEMENTING BUSINESS LICENSE APPLICATION SERVICES IN VIETNAM OF THUY NGOC LAW FIRM
To help businesses save time, ensure valid documents and get licensed quickly, Thuy Ngoc Law Firm implements the service process of applying for a Retail Business License according to the following professional steps:
Step 1: Receive information and preliminary consultation
Receive basic information of the enterprise: name, enterprise code, investment capital, industry, business location, type of goods expected to be retailed.
Lawyer Thuy Ngoc provides detailed advice on licensing conditions, cases requiring additional approval from the Ministry of Industry and Trade, and estimated implementation time and costs.
Step 2: Prepare and complete the application
- Prepare a complete set of documents to apply for a Retail Business License according to regulations. The documents usually include:
- Application for Business License;
- Explanation of conditions for granting business license;
- Financial reports;
- Documents proving financial capacity;
- Lease agreement or documents proving the right to use the retail location;
- Certificate of investment registration, business registration, etc.
Thuy Ngoc's lawyer carefully reviewed the documents to ensure compliance with legal regulations.
Step 3: Representative submits application and works with state agencies
- Business representative submits application to competent authority.
- Monitor the progress of application processing, exchange, supplement documents or explain as required by the licensing authority.
- On behalf of the enterprise, work directly with the Department of Industry and Trade, Ministry of Industry and Trade or Provincial People's Committee (if necessary).
Step 4: Receive results and hand over the License
- After the application is approved, Thuy Ngoc receives the Retail Business License and hands it over to the enterprise.
- Further advice on regulations governing retail operations, opening additional retail outlets or adjusting licenses in the event of future changes.
Step 5: Post-licensing support
- Guide businesses to fulfill their periodic reporting obligations on retail activities according to the provisions of Vietnamese law.
- Regular consultation throughout the operation to ensure legal compliance and minimize risks.
10. REASONS TO CHOOSE THE LEGAL SERVICES IN VIETNAM OF THUY NGOC LAW FIRM
a) High experience and expertise
Thuy Ngoc Law Firm has a team of experienced experts with in-depth knowledge of legal procedures and regulations related to applying for a business license.
b) Save time and effort
Using the business license application service at Thuy Ngoc Law helps customers avoid having to learn and handle complicated procedures themselves, saving time and effort to focus on core business operations.
c) Enthusiastic and dedicated consulting
Thuy Ngoc Law Firm provides thoughtful consulting services, answers all questions related to the licensing process, helping clients understand the conditions and benefits.
d) Minimize legal risks
With the company's support, the application will be prepared properly and completely, helping to minimize the risk of the application being rejected or legal problems arising later.
e) Reasonable cost
Thuy Ngoc Law's services have reasonable fees, helping businesses save costs while still ensuring efficiency.
g) Long-term monitoring and support
The company not only supports during the licensing process but also monitors and supports after obtaining the license, ensuring that the business complies with regulations and can operate stably.
11. DISTINGUISH BETWEEN ENTERPRISE REGISTRATION CERTIFICATE AND BUSINESS LICENSE IN VIETNAM
Enterprise registration certificate and business license are both important documents in the process of establishing and operating a business, but they have differences in purpose, content, and issuance procedures. Below are the basic differences between these two types of documents:
a) Enterprise registration certificate
- Purpose: This is a document confirming the establishment of a business and is issued by a state management agency, usually the Department of Finance. The business registration certificate provides basic information about the business.
- Content: Includes information about business name, business registration number (tax code), head office address, charter capital, legal representative.
- Requirement: All businesses must have a business registration certificate.
- Validity period: The business registration certificate is valid for the entire duration of the business's operations, until the business is dissolved or its license is revoked.
b) Business license
- Purpose: This is a license required for businesses to legally operate in certain conditional business sectors. A business license confirms that a business has met the legal requirements to operate in a specific field.
- Content: Includes conditions and standards that businesses must meet to operate in conditional industries. This may relate to capital requirements, personnel, facilities, or other professional requirements.
- Requirement: Business license is applied for after the enterprise has been established (has been granted a business registration certificate). Only enterprises operating in conditional industries need to apply for a business license.
- Validity period: Usually has a certain period and must be renewed when it expires. Some business licenses can be revoked if the business violates the prescribed conditions.
12. ANSWERS TO SOME QUESTIONS ABOUT APPLYING FOR A RETAIL BUSINESS LICENSE IN VIETNAM
Question 1: Which foreign-invested enterprises need to apply for a Retail Business License?
Answer
All foreign-invested enterprises selling directly to consumers in Vietnam must apply for a Retail Business License.
Question 2: Do I need to apply for a Retail Business License to sell only online?
Answer
Yes, if the business directly supplies goods to consumers.
Question 3: Do 100% Vietnamese-owned enterprises need to apply for a Retail Business License?
Answer
No. The regulations for applying for a Retail Business License only apply to foreign-invested enterprises.
Question 4: Is legal capital required to apply for a retail business license?
Answer
The law does not prescribe a minimum level, but capital must be appropriate to the scale of operations.
Question 5: Do I need to prove business experience to apply for a retail business license?
Answer
Maybe, depending on the type of goods and industry.
Question 6: What if my retail business license is denied?
Answer
Thuy Ngoc Law will support in reviewing the cause and redoing the application without consulting fee.
Question 7: Can a law firm be authorized to apply for a retail business license?
Answer
Yes, just a valid power of attorney is required.
Question 8: Is it necessary to translate and notarize documents for applying for a retail business license?
Answer
Yes, applicable to foreign language documents.
Question 9: Does the application for a retail business license need to be consular legalized?
Answer
Yes, applicable to documents issued abroad.
Question 10: If a business changes the information on its retail business license, does it need to reapply for the license?
Answer
Yes.
It is necessary to do procedures to adjust the information on the Business License.
Question 11: Is it necessary to sign a lease contract before applying for a retail business license?
Answer
Yes.
It is advisable to sign a tentative lease, to prove the legal location.
Question 12: Do businesses need a human resource recruitment plan in Vietnam?
Answer
Yes.
To demonstrate economic and social benefits.
Question 13: If selling through an agent, do I need a retail business license?
Answer
Not.
If the business does not sell directly to consumers.
Question 14: Regulations on reporting on the performance of goods trading activities and activities directly related to goods trading?
Answer
According to the provisions of Vietnamese law, annually, before January 31, foreign-invested economic organizations are responsible for reporting the situation of goods trading activities and activities directly related to goods trading.
Question 15: Does Thuy Ngoc provide any support after licensing?
Answer
Yes. Including tax consulting, accounting, business law, business registration, work permit application, temporary residence card.
Are you looking for a service to apply for a retail license in Vietnam for a foreign-invested enterprise?
Please contact Thuy Ngoc Law Firm as follows:
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Thuy Ngoc Law Firm will meet your requirements professionally, prestigiously and effectively
