With the development of the economy and modern consumption trends, the demand for these services is continuously increasing. In the article below, we will explore the legal aspects and common questions related to product consumption services.
I. Demand Related to Product Consumption Services
In the context of a constantly fluctuating market, the demand for product consumption services is growing. Product consumption plays a pivotal role in maintaining and expanding business operations, helping to recover capital and generate profits for reinvestment. This is a crucial factor in determining production scale and shaping a business's market position, while also linking the production process with actual consumer needs, ensuring that a business's efforts yield practical value. Furthermore, optimizing the consumption process through finding distribution partners and building brands has also become a vital factor, helping businesses retain customers and meet the increasingly diverse demands of the market.
II. Regulations Related to Product Consumption Services
1. What are Product Consumption Services?
Product consumption services are activities that support and supplement the process of delivering products from businesses to consumers to ensure business efficiency and increase value. They encompass various stages such as distribution, goods delivery, product promotion, customer care, and after-sales services. The main goal of these services is to optimize the conversion of products into revenue, while enhancing the consumer experience and building trust in the business.
2. Procedures for Establishing a Company Providing Product Consumption Services
In Vietnam, to establish a company providing product consumption services, one must comply with the registration procedures stipulated by corporate law. Below are the main stages to help you complete the company establishment procedures smoothly and in accordance with regulations.
To establish a company providing product consumption services, businesses must comply with legal registration procedures. Below are the specific steps to help you complete the company establishment procedures smoothly and in accordance with regulations.
1. The first step is to decide on your business type, business lines, and a suitable name for the company. Additionally, you need to determine the head office address, the list of members or shareholders, the charter capital (vốn điều lệ), and select the legal representative (người đại diện theo pháp luật). Thorough preparation of these elements helps ensure that the registration dossier is submitted completely and accurately.
2. Next is drafting and submitting the registration dossier. This dossier includes several essential documents such as the application for company registration, the enterprise charter (điều lệ doanh nghiệp), and the list of capital-contributing members or shareholders. Additionally, copies of identification documents of members/shareholders are required, along with an investment registration certificate if the company has foreign capital. If a member or shareholder is an organization, relevant documents must be supplemented, along with a power of attorney if the submitter is not the legal representative. Finally, other documents must also be prepared if the business line is subject to conditional management.
3. Prepare to submit the dossier and carry out public announcement (đăng bố cáo). You need to determine the registration authority that will receive the dossier. After submitting the dossier and paying the announcement fee, the company will receive its business registration certificate (giấy chứng nhận đăng ký kinh doanh) and proceed with the public announcement. Notably, the dossier can be submitted electronically through the national business portal. Following this, the fourth stage is to create the corporate seal (con dấu pháp nhân), which includes designing the seal mẫu, engraving the seal, and receiving the corporate seal.
4. The stage of creating the corporate seal (con dấu pháp nhân) comprises three main steps. First, you will proceed to design the seal for the company. Next, after the design is approved, the seal will be engraved. Finally, you will receive the corporate seal, completing the necessary process for the company to operate legally.
5. The post-establishment phase for a company involves a series of important procedures. First, the company needs to display its signboard at the head office address. Following this, it is necessary to register for a digital signature (chữ ký số) and open a bank account. Next, online tax declaration registration and submission of tax returns along with business license tax (thuế môn bài) are also essential steps. The company also needs to register its Value Added Tax (VAT) calculation method and notify the use of electronic invoices. Finally, ensuring all business conditions are fully prepared is mandatory.
In summary, the process of establishing a company providing product consumption services involves many important steps, from preparing dossiers, submitting and registering with competent authorities, to establishing the corporate seal and carrying out post-establishment procedures, all aimed at ensuring the company operates legally and efficiently in a competitive business environment.
III. Frequently Asked Questions Related to Product Consumption Services
1. How Long Does It Take to Establish a Company Providing Product Consumption Services?
The time required to establish a company providing product consumption services will vary depending on the business type and related legal procedures. For common company types such as Joint Stock Companies (Công ty cổ phần), Two-Member Limited Liability Companies (Công ty TNHH hai thành viên), and Single-Member Limited Liability Companies (Công ty trách nhiệm hữu hạn một thành viên), the establishment process typically takes 3 to 5 days. Therefore, thorough research and a clear understanding of the necessary requirements will help you save time during the company establishment process, while also laying a solid foundation for future business operations.
2. Is It Permitted to Provide Consumption Services for Prohibited Products?
Providing consumption services for prohibited products is an act not permitted by law. Products on the list of prohibited transactions, such as illegal goods or products violating safety, hygiene, or copyright regulations, cannot be consumed. Businesses will face serious legal consequences if they fail to comply with these regulations, such as monetary penalties, product confiscation, or suspension of operations. Therefore, a clear understanding of legal regulations is essential to ensure that product consumption services are carried out lawfully and transparently.
3. Which Business Lines Need to Be Registered When Establishing a Company Providing Product Consumption Services?
Currently, in Vietnam, there are 229 conditional business lines (ngành nghề kinh doanh có điều kiện) stipulated in Appendix IV of the Investment Law 2020 (Luật Đầu tư 2020), 29 of which require operating licenses. For example, the advertising services business related to products such as pharmaceuticals, cosmetics, food, and medical equipment (industry code 7310) is one of the lines that need attention. Additionally, businesses should consider engaging in activities such as multi-level marketing, if it aligns with their business model.
4. Are Product Consumption Services Allowed to Re-market Expired Products?
Product consumption services are not allowed to market expired products. Pursuant to Clause 4, Article 8 of the Law on Product and Goods Quality 2007 (Luật Chất lượng sản phẩm, hàng hóa 2007), "Exporting, importing, trading, exchanging, marketing expired products, goods." is one of the strictly prohibited acts. Thus, according to legal regulations, the consumption of expired goods not only violates food safety and public health regulations but can also lead to serious consequences for consumers. Businesses providing product consumption services are responsible for inspecting and ensuring that all goods consumed are within their use-by date, to protect consumer rights and health as well as avoid legal risks.
5. Are Product Consumption Services for Prohibited Items Subject to Penalties?
According to Clause 5, Article 3 of Decree No. 98/2020/ND-CP (Nghị định số 98/2020/NĐ-CP), prohibited goods include types of goods banned from business, circulation, and use in Vietnam. Thus, when an individual or organization engages in the buying and selling of these types of goods, they will be considered as trading prohibited goods, and providing consumption services for prohibited products is an act not permitted by law. Products on the list of prohibited transactions, such as illegal goods or products violating safety, hygiene, or copyright regulations, cannot be consumed.
Consumption of products on the prohibited list
Administrative penalties related to the trading of goods are regulated in Article 8 of Decree 98/2020/ND-CP (Nghị định 98/2020/NĐ-CP), with different forms of penalties based on the severity and nature of the violation. Specifically, penalties range from 1 million to 3 million VND for minor violations, up to 100 million VND for serious offenses. Furthermore, Article 190 of the Penal Code 2015 (Bộ luật Hình sự năm 2015), as amended by the Law Amending the Penal Code 2017 (Luật Sửa đổi Bộ luật Hình sự năm 2017), also clearly stipulates the crime of manufacturing and trading prohibited goods, aiming to strictly deal with acts violating the law in this field.
Therefore, companies need to clearly understand current legal regulations and ensure that their product consumption activities fully comply with the law.
IV. Legal Consulting Services Related to Product Consumption Services
The information above provides an overview of the regulations related to product consumption services in Vietnam. To ensure that the procedural process is carried out quickly and effectively, businesses can seek NPLaw for specific advice and comprehensive support. With a team of experienced lawyers, NPLaw is committed to optimizing time and costs for clients, while also being ready to resolve any issues arising throughout the implementation process.
Should you require consultation or wish to know more details, please contact NPLaw for advice and support.
