THINGS TO DO AFTER ESTABLISHING A BUSINESS

1. Legal basis

• Law on Enterprise 2020
• Law on Accounting 2015
• Decree No. 139/2016/ND-CP
• Decree 125/2020/ND-CP

2. Things to do after establishing a business

1. Announcement of business registration content

According to Article 32 of the Law on Enterprise 2020

• Enterprises must pay fees and publicly announce on the National Business Registration Portal when being granted a Business Registration Certificate.
• The contents of the announcement include: Certificate of business registration, business lines, list of founding shareholders, list of shareholders who are foreign investors for joint stock companies.
• Implementation deadline: within 30 days from the date of publication.

In general, after establishing a business, companies initially need to publish their registered content on the National Information Portal. This announcement helps businesses retain their business registration information, from which they can see the company's change and development process in the business field. At the same time, it also publicizes business registration information to help state agencies easily manage and become a reliable address for customers and partners to learn about businesses.

2. Engrave the company seal

According to Article 43 of the Law on Enterprise 2020

• Enterprises have the right to decide on the quantity, form, content and model of their seal, unless otherwise stipulated in the enterprise charter.
• Each business has a seal model that is consistent in content, form and size. That is, a business can have as many seals as possible, but they must all be unified according to a registered seal model.
• Enterprises must notify the Business Registration Office where the enterprise is headquartered before using or changing or canceling the seal sample or changing the number of the enterprise's seal.

3. Open a business bank account

After establishment, in order to participate in transactions with customers as well as fulfill financial obligations with management agencies, businesses must carry out procedures to open a bank account. Specifically, businesses need to choose the bank they want to open an account and prepare a number of documents according to the bank's requirements such as:

• Application for opening an account according to the bank's form (signed and sealed);
• Identity card of the legal representative and chief accountant (notarized copy);
• Business registration license (notarized copy);
• Seal sample registration form (notarized copy);
• Other documents according to each bank's own regulations: Decision to appoint chief accountant, Capital contribution commitment, Copy of company charter,...

4. Register for an electronic tax declaration account

• Enterprises enter the official website of the General Department of Taxation at nhantokhai.gdt.gov.vn to register for an electronic tax declaration account.
• After having an account, businesses continue to visit the website nopthue.gdt.gov.vn and complete tax obligations according to the instructions.

5. Register for an digital signature and pay taxes

Enterprises order digital signatures and register for use with a digital signature authentication service provider. An digital signature has the same value as a business seal when paying taxes electronically.

• Documents to prepare when purchasing digital signatures:

+ Business registration certificate

+ Copy of Citizen Identity Card of the legal representative

6. Hang signs

According to Clause 4, Article 37of the Law on Enterprise 2020

• Hanging a sign at the headquarters address is one of the things you need to do after establishing a business. Business signs need to have the following 3 mandatory contents: business name, business code and head office address.
• Conditions on signs:

+ For horizontal signs, the maximum height is 02 meters, the length must not exceed the width of the house facade.

+ For vertical signs, the maximum width is 01 meter (m); The maximum height is 04 meters but does not exceed the height of the floor where the sign is located

+ Signs must not block emergency exit or firefighting spaces; Do not encroach on sidewalks or roadways, affecting public traffic.

7. Submit license tax declaration and pay license tax

According to the provisions of Decree 139/2016/ND-CP and Circular 65/2020/TT-BTC regulating license fee collection rates and deadlines for submitting declarations and license fees as follows:

• License fee collection rate:

+ Enterprises with capital of over 10 billion VND: 3,000,000 VND/year;

+ Enterprises with charter capital of 10 billion VND or less: 2,000,000 VND/year;

+ Enterprise dependent units: branches, business locations pay license tax of 1,000,000 VND/year.

• Deadline for submitting declarations and paying license tax:

+ The deadline for paying license fees is January 30^th

8. Purchase and issue digital invoices

• Currently, for businesses after establishment that need to issue invoices, they are required to purchase digital invoices and carry out procedures to notify the tax authority of invoice issuance 2 days before use.
• Documents for notification of issuance of digital invoices include:

+ Decision to use invoice (signed and sealed by the legal representative of the enterprise).

+ Notice of issuance of digital invoices.

+ digital invoice template.

So, the above information might have answered your quiries about things to do after establishing a company. Full completion of these procedures is the basis for conducting business activities legally. Therefore, businesses need to refer to fully implementing these steps to avoid penalties from authorities.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.