How Vietnam Has Simplified Procedures to Register Business in Vietnam in 2023? | ANT Lawyers

By the end of 2019, there have been more than 30,000 FDI projects choosing Vietnam for investment, with a total registered capital of about 362 billion USD. Recently, business propensity of Vietnam is highly concentrated on the private sector, attracting foreign investors to the Vietnam market.

As Vietnam has built diplomatic relationship with nearly 190 countries around the world and signed about 15 Free Trade Agreements with important trading partners, Vietnam’s participation in various free trade agreements has created a strong impetus for foreign investors from developed countries to set their first steps in the Vietnam.

To be able to register a business in Vietnam, investors need to carry out procedures to apply for the Investment Registration Certificate. After being granted the Investment Registration Certificate, the investor shall then apply for Enterprise Registration Certificate.

To carry out the process of applying for the Enterprise Registration Certificate, firstly, the investors need to choose a name for the business, which must not be identical or confusing to the name of another business already registered in the National Database of Business Registration on a national scale, except for businesses that have been dissolved or have had effective court decisions declaring businesses bankrupt.

After that, the investors or the authorized person need to prepare a complete set of application dossiers in accordance with the law and submit it at the Business Registration Office where the head office is planned to be located. The Business Registration Office will check the validity of the application dossier, based on the appointment date on the Receipt, the investors or the authorized person can go to the Business Registration Office to receive the results of the application or Register to receive results by post. The time limit for considering and handling the dossier is 03 working days from the date of receiving the valid dossier.

The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:

-The registered business lines are not in the prohibited business sectors;

-The business’s name is set in accordance with the provisions of law;

-Having a head office as prescribed by law;

-Having a valid business registration dossier as prescribed by law;

-Fully paying the enterprise registration fee as prescribed by law

Over the years, investors have built confidence in the Vietnam’s business and investment environment. The socio-political and macroeconomic stability are prominent features for the growth of Vietnam’s business potential. The Vietnam government has determined to simplify the process for investment application. Hence, Vietnam is and will continue to be an attractive investment location, a promising destination for foreign investors for applying for investment registration certificate and register a business in Vietnam compared with other neighboring countries in the region.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

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What Are the Advantage of Foreign Investors in Setting up Business in Vietnam in 2023? | ANT Lawyers

 Located in an important position of Southeast Asia, Vietnam has a long coastline of more than 3,000 km. With a diverse geographical structure interspersed with mountainous, highland and coastal areas suitable for general economic zones, Vietnam has ideal conditions to develop the trade and tourism industries. When setting up business in Vietnam, investors can enjoy financial advantage such as corporate income tax, import and export tax and land finance incentives.

Incentives on corporate income tax: In recent years, Vietnam has gradually reduced the corporate tax rate (CIT). In the 2004-2008 period, CIT was 28%, in the 2009-2013 period it was 25%, from 2014 to 2015, 22% and from January 1, 2016 until now, 20%. In addition, the provision of high corporate income tax incentives for a number of key fields that need to be encouraged for investment has contributed to attracting investment, encouraging business, creating favorable conditions for enterprises to increase accumulation, increase investment in the economy, and promote growth, hence promoting investors in setting up company in Vietnam.

Import and export tax incentives: The 2016 Import and Export Tax Law has added regulations that high-tech enterprises, science-technology enterprises, science-technology organizations are exempted from import tax on raw materials, materials and components that cannot be produced domestically within 5 years from the date of commencement of production. There are also import and export tax incentives being applied such as:

(i) Exemption from import tax for goods imported for processing for foreign countries and when exporting and returning products to foreign parties, they are exempt from export tax;

(ii) Goods imported for processing that are exempted from tax, goods temporarily imported for re-export and goods being raw materials and supplies in service of the production of exported goods can be extended the tax payment time to 275 days from the date of filing the customs declaration; goods temporarily imported for re-export may be extended the tax payment time to 15 days from the expiration date;

(iii) Exemption from import tax on goods to create fixed assets for investment projects in areas of special investment encouragement, investment promotion fields and investment projects in the locality have difficult socio-economic conditions.

Incentives on land finance: Foreign enterprises investing in Vietnam can be applied adjusted reduce rate (%) calculating the general land rent from 1.5% to 1%. In addition, the State also stipulates the application of the land price adjustment coefficient in determining the land price to calculate the land rent, therefore, making Vietnam increasingly becoming a favourable destination to attract foreign investment and company establishment in Southeast Asia.

In addition, the development of a transparent and consistent investment legal system is increasingly becoming a good tool to promote foreign direct investment inflows into Vietnam in the spirit of the state ensuring the rights of the investors’ ownership, investment capital and other interests of foreign organizations and individuals, creating favorable conditions and simplifying procedures for such organizations and individuals to invest in Vietnam. Compared with the foreign investment laws of some countries in the region, the law on foreign investment in Vietnam is considered by the international public to be more open and attractive, for example applying the form of 100% foreign capital ownership, administrative procedures are simplified, non-discriminatory between Vietnamese enterprises and foreign-invested enterprises. The law has been transforming in the direction of considering investment and business as the matters of enterprises and investors, which the investors have full authority to make decisions from investment projects to the formation and business of the enterprise and that the government only guides, creates an open legal environment, has favorable mechanisms and procedures, supervises and enforce the law.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

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What Attention for Filing PCT Patent Application in Vietnam in 2023? | ANT Lawyers

  There are individuals and companies that believe that by filing a trademark, patent or industrial design application in the host country, they will automatically receive worldwide protection. However, in fact, intellectual property rights are territorial related and Intellectual Property (IP) government offices only grant protection titles according to the laws of the relevant countries (or region). Therefore, the Patent Cooperation Treaty (PCT) was born and signed by the member countries on June 19, 1970 in Washington, the PCT entered into force on June 1, 1978. Vietnam joined the PCT on March 10, 1993.

According to the definition of Vietnam law, an invention is a technical solution in the form of a product or process that aims to solve a defined problem by applying natural laws. In order to be able to obtain patent protection in different countries, an applicant can apply for protection through the PCT, either directly or within 12 months from the date of filing the first patent application filed in a country party to the Paris Convention, designating all countries wishing to register on the same application form, in the same language, and pay a fee.

The applicant needs to prepare a set of application including the following documents:

-02 Patent registration declarations according to Form 01-SC, specified in Appendix A of Circular 16/2016/TT-BKHCN.

-01 Vietnamese translation of the description and summary in the international application (published copy or original submitted, if the application has not been published, and the revised version and explanation of the amendment, if the international application is amended under Article 19 and/or Article 34.2(b) of the Treaty).

-01 Vietnamese translation of the appendices to the international preliminary assessment report (when substantive examination is requested).

-01 original copy of payment receipt (in case of payment of fees and charges via postal service or directly into the account of the National Office of Intellectual Property).

-01 Power of Attorney (in case the application is submitted through a representative).

After fully preparing the application, the applicant submits the application at the National Office of Intellectual Property under the Ministry of Science and Technology.

The time limit for formal examination is 1 month from the date of application submission. Applications will be published in the 19th month from the priority date or the filing date, if the application does not have a priority date, or within 2 months from the date of acceptance of the valid application, whichever is later. The time limit for substantive examination is not more than 18 months from the date of application publication if the request for substantive examination is filed before the date of application publication or from the date of receipt of the request for substantive examination if such request is filed after date of publication of application.

One of the important steps in filing PCT patent application in Vietnam is to make sure the translation into Vietnamese language match up with the original language. Patent attorneys at ANT Lawyers will assist along the process including the translation of the patent and work with the national office of intellectual property in Vietnam to follow the instructions to complete the registration process in Vietnam.

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What Deadlines for Submitting Labour Reports of Enterprises in Vietnam in 2023? | ANT Lawyers

 After the establishment of the company in Vietnam, every year, the employer will need to submit some types of labor reports to the competent authorities. This is a mandatory submissions in Vietnam that the enterprises must perform so as the authorities could follow up and undertake the governance in terms of labour law compliance in Vietnam. Each compliance officer of enterprises could comply or have compliance lawyer hired for advising or assisting in this procedures.

For reporting the labor situation, according to the provisions of Article 16 of Circular 28/2015/TT-BLDTBXH on notification of labor changes, within 30 days from the date of establishment, the employer must notify with the Employment Service Center where the head office is located about the number of working employees. Every month before the 3rd, the employer must notify the Employment Service Center about the change of employees working at the unit, if any. In case the employer reduces from 50 employees or more, a notification should be sent to the Employment Service for timely advice and support. In addition, before January 15 of each year, employees also need to send a report to the Department of Labor, War Invalids and Social Affairs on the state of participation in unemployment insurance of the previous year.

For enterprises employing foreign workers, before July 5 and January 5 of the following year, the foreign employer must report the first 6 months of the year and annually on the situation of using foreign workers in Vietnam. The report of foreign workers in Vietnam should cover information of i) number of foreign workers in Vietnam; ii) nationality of foreign workers in Vietnam; iii) average salary level of foreign workers in Vietnam; iv) positions of foreign workers in Vietnam, being foreign managers, foreign directors, foreign experts, foreign high-tech workers; v) work permits in Vietnam, being new work permits, re-issued work permits, extended work permits; vi) type of companies to work in Vietnam, being state-owned company or foreign owned company in Vietnam or others.

Regarding the occupational accident and occupational health situation at the enterprise, the employer must send a summary report on the situation of occupational accidents of employee in Vietnam to the Department of Labor, War Invalids and Social Affairs at the place where the head office is located and send the report to the health center of the district, town or provincial city where the head office of the labor establishment is located before July 5 of each year for the first 6 months of the year report and before the January 10 of the following year for the annual report. This report may be sent in person, by fax, by post or by email.

Regarding statistics and reports on occupational safety and health, the employer must report on the work of occupational safety and health on an annual basis to the Department of Labor, War Invalids and Social Affairs. Association, Department of Health before January 10 of the following year as prescribed in Clause 2, Article 10 of Circular 07/2016/TT-BLDTBXH.

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What Deadlines for Submitting Labour Reports of Enterprises in Vietnam in 2023? | ANT Lawyers

 After the establishment of the company in Vietnam, every year, the employer will need to submit some types of labor reports to the competent authorities. This is a mandatory submissions in Vietnam that the enterprises must perform so as the authorities could follow up and undertake the governance in terms of labour law compliance in Vietnam. Each compliance officer of enterprises could comply or have compliance lawyer hired for advising or assisting in this procedures.

For reporting the labor situation, according to the provisions of Article 16 of Circular 28/2015/TT-BLDTBXH on notification of labor changes, within 30 days from the date of establishment, the employer must notify with the Employment Service Center where the head office is located about the number of working employees. Every month before the 3rd, the employer must notify the Employment Service Center about the change of employees working at the unit, if any. In case the employer reduces from 50 employees or more, a notification should be sent to the Employment Service for timely advice and support. In addition, before January 15 of each year, employees also need to send a report to the Department of Labor, War Invalids and Social Affairs on the state of participation in unemployment insurance of the previous year.

For enterprises employing foreign workers, before July 5 and January 5 of the following year, the foreign employer must report the first 6 months of the year and annually on the situation of using foreign workers in Vietnam. The report of foreign workers in Vietnam should cover information of i) number of foreign workers in Vietnam; ii) nationality of foreign workers in Vietnam; iii) average salary level of foreign workers in Vietnam; iv) positions of foreign workers in Vietnam, being foreign managers, foreign directors, foreign experts, foreign high-tech workers; v) work permits in Vietnam, being new work permits, re-issued work permits, extended work permits; vi) type of companies to work in Vietnam, being state-owned company or foreign owned company in Vietnam or others.

Regarding the occupational accident and occupational health situation at the enterprise, the employer must send a summary report on the situation of occupational accidents of employee in Vietnam to the Department of Labor, War Invalids and Social Affairs at the place where the head office is located and send the report to the health center of the district, town or provincial city where the head office of the labor establishment is located before July 5 of each year for the first 6 months of the year report and before the January 10 of the following year for the annual report. This report may be sent in person, by fax, by post or by email.

Regarding statistics and reports on occupational safety and health, the employer must report on the work of occupational safety and health on an annual basis to the Department of Labor, War Invalids and Social Affairs. Association, Department of Health before January 10 of the following year as prescribed in Clause 2, Article 10 of Circular 07/2016/TT-BLDTBXH.

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