12 things to do after starting an enterprise that the businesses should be noted in order to accommodate the next business.
*Please take note that the analysis below is based on effectiveness at this time and it can be changed as a result of regulatory changes.
Table of Contents/Mục lục
1. Double-checking the information on Enterprise Registration Certificate
After granting an Enterprise Registration Certificate.from a Competent State Agency,.you have to immediately check to see if the contents of the Enterprise Registration Certificate are sufficient and correct,.or if anything needs to be changed?.If any information has not been entered or has been changed,.it is necessary to carry out the correction/re-adjustment procedure.
* Enterprises should note that the information and phone number of the legal representative on the Enterprise Registration Certificate. will be public,.so you need to consider which information and phone number should be registered.to avoid being disturbed while still receiving the necessary information from the State Agency.which send to the legal representative of the enterprise.
2. Engraving the company stamp
Enterprises have the right to decide on the number.and form of legal entity seals. However,.the content of the seal must include 2 important.pieces of information: the Business Name and.the Tax registration number of the enterprise. 12 THINGS TO DO AFTER SETTING UP AN ENTERPRISE
3. Making the company banner
Enterprises should note the banner must be hung.in front of the head office immediately after receiving the Enterprise Registration Certificate. At any time,.tax officers can also go to monitor if the business.is operating and hung up the banner at the head office. In case the enterprise does not hang the banner,.the tax authority may suspend the tax registration code.of the enterprise. In addition to being administratively fined,.the enterprises must conduct complicated procedures for reopening.their tax registration code. An enterprise.may be fined between 30,000,000 Vietnam dong.and 50,000,000 Vietnam dong if the enterprise’s name is not affixed.at its head office, branch, representative office,.or business location.
4. Register an Electronic signature
An electronic digital signature is a must-have business tool.that has the same legal value.as a legal entity’s seal. Enterprises must buy electronic signatures.in order to submit the tax reports and pay taxes. This signature also is used by the company’s accountant.to complete online tax payments for the enterprise. HOW TO DO AFTER ENTERPRISE’S ESTABLISHMENT
*Note: To be able to use an electronic signature to pay taxes, the enterprise should request your bank to activate the electronic tax payment function for your company’s bank account when making a bank account.
5. Register for a transactional bank account
- When an enterprise begins operation,.it must register to open a transaction bank account.for the company.
- In addition to the current account, foreign-invested enterprises.must have a Direct Investment Capital account to contribute capital.and transfer capital.
- The legal representative.or entrepreneur must bring ID/CCCD/Passport + Enterprise registration certificate +.Company Stamp to the bank to open an account. 12 THINGS TO DO AFTER SETTING UP AN ENTERPRISE
* Note: It is recommended to open an account at a bank that offers “open” support for businesses to reduce procedural hassles and facilitate doing business in Vietnam.
6. Contributing the capital to the company within 90 days
Members and shareholders.of the company must contribute capital to them.in whole and with the proper type of assets.as committed when.registering enterprise establishment.within 90 days from the date of issuance of the Enterprise Registration.Certificate.
* Note: In case the capital cannot be fully funded for any reason within this duration, the enterprise needs to contact as soon as possible so that the situation can be resolved without consequence.
7. Supplement conditional licenses and certificates
Enterprises supplement with sub-licenses for conditional business lines.before officially going into operation. For instance, a practicing certificate, a food safety license,.a certificate of eligibility for fire prevention and suppression,.a retail business license, and so on.
8. The initial tax declaration application
- The initial tax declaration is a very important step.for an enterprise.after its establishment. Enterprises must perform the initial tax declaration procedures.within 10 working days from the date of issuance of the Enterprise Registration Certificate.
- In case the enterprise fails.to submit the tax declaration dossiers on time,.it may face a warning or a fine ranging from 2,000,000 Vietnam dong.to 25,000,000 Vietnam dong depending on the severity of the violation.
9. Hiring an accountant or accounting service
- Enterprises can hire.an accountant for your company.to conduct the tax reports, pay taxes, perform paperwork,.and issue invoices and documents.
- Or to save costs,.enterprises can hire accounting services.
10. Conduct invoice issuance notice
Enterprises should issue.a notice of invoice issuance in compliance with regulations. Then,.to properly use invoices,.print or order invoices, or register.to buy invoices from tax authorities. Only with.the consent of the appropriate authority can invoices be issued.
11. Paying taxes after establishing a company
An enterprise should pay taxes in full.after establishing a company. The specific taxes are as follows:
- License tax: Newly established enterprises will be exempt from license tax for the first year but will still be required to submit a declaration. From the 2nd year onwards,.new enterprises must pay license fees. The deadline for submitting a license tax application.is before January 30 of the year following the year of establishment. Accordingly,.the following is the level of the license fee for organizations engaged.in the production and selling of products and services:
- Charter capital or investment capital over 10 billion Vietnam.dong: 3,000,000 (three million) Vietnam dong/year;
- Charter capital or investment capital of 10 billion Vietnam dong.or less: 2,000,000 (two million) Vietnam dong/year;
- Branches,.representative offices, business locations,.non-business units, and other economic organizations:.1,000,000 (one million) Vietnam dong/year. 12 THINGS TO DO AFTER SETTING UP AN ENTERPRISE
- Value-added tax:.paid according to the enterprise’s monthly report.
- Enterprise income tax:.paid after the fiscal year ends. On October 30 yearly, you must pay a portion of the corporate income tax due.for the first three quarters of the fiscal year that is not less than 75% of the corporate income tax.due according to the annual finalization, and the remaining CIT must be paid.within 90 days from the end of the fiscal year.
*Note: Please note that the fine for late tax payment is now very severe; is currently very high,.in addition, enterprises must pay full tax and 0.03 %/day interest per day.
12. Signing labor contracts, paying social insurance for employees
- Enterprises sign the probationary contracts.and the labor contracts when hiring employees for working.
- Within 30 days from the date of signing the labor contract or working contract,.the enterprise must register to participate in.social insurance for employees. 12 THINGS TO DO AFTER SETTING UP AN ENTERPRISE
- If the company fails.to pay social insurance premiums.for all employees on time, it will be fined between 18% and 20%.of the entire amount due at the time.the administrative violation record is made,.but not more than 75 million Vietnam dong. In case enterprises avoid paying social insurance premiums.for employees, they may be fined from 50-70 million Vietnam dong.(Article 4 Decree 28/2020/ND-CP).
The aforementioned are basic things.to do once the Enterprise has granted an.Enterprise Registration Certificate. Because of the various methods,.and performing the above can take a lot of time and effort,.due to complicated procedures, but enterprise can still perform.in case you can research properly and.have enough patience.
LawPlus is willing to assist the businesses. We can also on behalf of.the enterprise perform the above procedures.at a very reasonable cost. Please contact LawPlus.at 039.39.30.522.or 02682 779 399 or 0962 000 210 for more information,.or send an email via: info@lawplus.vn.
Law Plus
