Currently, Vietnam is a developing country. Import Export activities are one of the important business sectors that significantly impact the market economy’s development. The attraction of this profession is a high economic profit, an increase in exchanges of development economics aboard, and a development of business cultures as well as professional experiences. However, the establishment of an Import Export Company in Vietnam is extremely difficult. What are conditions, procedures, and applications for establishing an Import Export Company? What are professions allowed to import and export in Vietnam? NPLaw will provide related information and contents through the following essay.
In the integration of an international economy, trade liberalization has become an outstanding trend, and a process of indispensable development in human society. In 2016, Vietnam established diplomatic relations with 170 countries around the world, expanded trade relations, and exported goods to 230 countries and territories. The role of Import Export Companies has become more important than ever.
An import export is an important activity to circulate goods of a country with other countries, so the import export is a popular business for enterprises. To operate import export activities, the Client needs to prepare many legal procedures to establish an Import Export Company.
An Import Export Company is an organization that has a legal entity, a separate seal, a limited asset, and operates in profession regarding the import export; and simultaneously is established as defined by Vietnamese Law. The establishment of the Import Export Company can be performed in the following three types: a Limited Liability Company (Co., Ltd), a Joint Stock Company (JSC), or a Partnership.
Before preparing applications and documents to establish the Import Export Company, traders need to clearly understand establishing conditions, as follows:
Enterprises need to demand conditions as defined by Articles 37, 38, and 39 of the Law on Enterprise 2020.
Information regarding an address of Company’s headquarters has to be clear and accurate, including number, alley, lane, hamlet, street, commune, ward, district, town, city under province, province, and city under central. There aren't used addresses of an apartment, or building to register company’s addresses.
Enterprises need to register accurately and fully professions regarding the import export and goods that they expect to import and export. Enterprises also need to understand business conditions such as a license, a certificate, a legal capital, etc., to implement procedures for granting the Enterprise Registration Certificate.
Enterprises can register a charter capital rate that is appropriate for their financial ability, except for professions that have specific regulations for a legal capital. Enterprises review prior conditions of the legal capital for professions expected to be registered, and they have to register the charter capital higher than the legal capital if there are regulations for the legal capital of such professions.
After demanding fully the conditions for establishing the Import Export Company, enterprises will prepare and file applications as defined by the Law, as follows:
Step 1: Preparing and filing the application listed at the Department of Planning and Investment for granting a business registration;
Step 2: Declaring for the business registration;
After granting the Enterprise Registration Certificate, enterprises have to publicly declare on the national enterprise registration portal according to processes, procedures, and paid fees as defined by the Law. Contents of declaration include the Enterprise Registration Certificate, and information about professions and businesses.
Step 3: Make a company’s seal
Currently, the Law doesn’t stipulate declaring procedures for a company’s seal. Thus, the enterprise will engrave and be responsible for the seal themselves.
Fees for establishing the Import Export Company are charges and fees that the person establishing the company has to pay to the State as defined by the Law. However, according to Article 32 of Decree 01/2021/ND-CP, enterprises have to pay charges and fees for business registration at the time of filing an application for establishing the company. If fee schedules and fees for establishing the company are stipulated together with Circular 47/2019/TT-BTC, fees will be fifty thousand (50.000) dong per time.
Enterprises need to consider the following notes to easily perform the procedures for establishing the Import Export Company in Vietnam:
Export and import are not business sectors, so enterprises must register specific Import Export activities. When enterprises want to implement these activities, they only need to declare and record tax registration information to have “Export Import” activities. Information about whether a company has registered for export-import activities or not is displayed on the national enterprise registration portal and is linked to many agencies, such as the Tax Agency and Customs Agency.
Enterprises can register code 8299 as the industry code for import-export activities as defined by the List of Economic Sectors in Vietnam issued together with Decision 27/2018/QD-TTg. In addition, export-import activities also involve many stages related to packaging and transportation. Enterprises can also register additional industry codes such as “Other transport-related support services” (5229), “Warehouse and storage of goods” (5210), “Packaging services” (8292), “Cargo handling” (5224), etc., for convenience in the process of export-import operations.
These are all information relating to THE PROCEDURES FOR ESTABLISHING A IMPORT EXPORT COMPANY IN VIETNAM as prescribed by Vietnamese Law. When performing import and export activities, our Client has to comply with the Law, and such activities have to be legally granted by the competent Agencies according to the Law. Please don’t hesitate to contact us, if the clients have any further questions. NPLaw is willing to support the Client in resolving all issues listed with the best efforts.
NPLAW is proud to be a prestigious law firm unit and has the trust and belief of clients, enterprises, and individuals. NPLaw specializes in providing legal services all-around relating to domestic and abroad investments such as Enterprise, Real Estate, Intellectual Property, Labor; drafting consultation, negotiation and concluding support for Commercial Contracts, domestic and abroad Service Contracts; consultation and support for implementing procedures for Licenses, etc,. NPLaw, with our professional Lawyers and Specialists, we have the full ability to consult with and support customers as they implement the above procedures. Along with the slogan “Your benefits - Our Priority”, NPLaw definitely becomes the accurate, and safe choice for your legal issues.
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(*) power of attorney: a legal document in which you give another person the right to act for you, esp. in financial or legal matters.
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