Currently, Retail is a form of business that many organizations choose. However, investing in retail also requires many mandatory conditions, especially for organizations with foreign investment capital. Accordingly, to carry out retail activities in the Vietnamese market, this organization must granted a license to establish a retail facility according to legal regulations. Retail establishment license
With many years of experience in business consulting, LawPlus would like to send you the following information related to applying for a license to establish a retail facility for economic organizations with foreign investment capital:
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Table of Contents/Mục lục
1. Retail establishment license
Based on Clause 2, Article 5 of Decree 09/2018/ND-CP, the Retail Establishment License (RE License) is granted to economic organizations with foreign investment capital to establish a retail facility. Accordingly, this is a type of license granted by the Department of Industry and .Trade to allow economic organizations with foreign investment capital to carry out the sale .of goods and directly related activities to the sale of goods in the Vietnamese market, including both retail. establishments and non-established retail. Retail facilities can be understood as the direct sales point of .enterprises with foreign investment capital to consumers (such as supermarkets, stores, etc.).
Currently, there are many retail facilities of these organizations in the Vietnamese market, such as AEON Vietnam, Central Retail, etc.
2. Conditions for establishing retail facilities
- Have a financial plan to establish retail facilities;
- Have a business plan;
- Retail goods are not on the list of restricted goods;
- No overdue tax debts in the case of being established in Vietnam for 01 year or more;
- For economic organizations with foreign investment capital that establish retail facilities, in addition to the above conditions, they must also meet:
- Have a suitable location in accordance with relevant planning in the geographic market area;
- Conduct an economic needs test: The economic needs test (ENT) is conducted in the case of establishing retail facilities other than the first retail facility, except for cases where the facility has an area of less than 500m2, is established in commercial centers, and does not belong to the type of convenience stores, mini-supermarkets;
- In case an economic needs test required: Meet specific conditions as prescribed by law.
3. Licensing dossier
According to Article 27 of Decree 09/2018, the dossier for obtaining a retail business license includes:
- Application for the retail business license (Form 04 in the Appendix issued with this Decree);
- Explanation of meeting the operational requirements;
- Documentation from the tax authority proving that there are no outstanding tax debts;
- Copies of the legal documents of the organization.
4. Procedures
Step 1: Preparation and submission of the dossier
The organization shall prepare a complete dossier in accordance with regulations and submit it directly, or via post or electronic network (if eligible) to the Licensing Authority.
Step 2: Dossier appraisal
If the dossier is valid, the licensing authority will consider granting the retail business license. If the dossier is invalid, the authority shall issue a written request. for the economic organization to supplement the dossier. In necessary cases, the licensing authority may request the opinion of the Ministry of Industry and Trade. Based on the corresponding legal provisions, the Ministry of Industry and Trade shall issue .a written approval of the retail business license. In case of refusal, a written response must be provided, stating the reason.
The processing time for the dossier shall be normally within 20 working days, depending on the case and the validity of the dossier.
Step 3: Receiving results
These are the regulations related to the application for a retail business license for foreign-invested .economic organizations. Customers can contact us via hotline 02862 779 399, 03939 30522, or email info@lawplus.vn to receive advice and answers from the LawPlus team.
