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We will specifically introduce you to the business and tax codes of the company and operator in the article below. In addition, there is an introduction to the format of Vietnamese company registration numbers.
After being established, enterprises and business households will have a business registration number and a tax code. But how are business identification numbers and tax identification numbers of enterprises and business households determined? Where is the business or household tax number displayed? Let's take a look at the specific answers in the article below.
Individuals and organizations engaged in business investment activities must first register their business and issue a business registration certificate before starting their business.
You can choose from different business forms depending on the size and nature of your business. After registration, you will get a business registration certificate, business registration certificate and other business certificates.
The certificate of industry and trade with the words "Certificate of business household registration" printed is the enterprise code.
The example in the license transaction code below is 018002752
Sample business household registration certificate (small and retail business model) in Vietnam
The enterprise code of an enterprise is the "enterprise code" on the Certificate of Business Registration.
In recent years, foreign direct investment capital has poured into Vietnam, especially from Korea, Japan and Singapore. Investment in software and IT development is common, accounting for about 4% of Vietnam's total FDI.
If you are investing in software development in Vietnam, company structure is very important for contracting, hiring and income in Vietnam.
Registering a company in Vietnam is a bit different from what entrepreneurs in other countries may be used to. While the opportunities for companies in Vietnam are attractive, the company registration process is more complicated and bureaucratic than in places like Hong Kong, Singapore, the US or Australia.
Fortunately, company registration is much simpler than it used to be. Usually no longer sticking to local partners or having to wait 6 months to complete registration. The application process and processing times are gradually improving.
Business households, registered businesses will incur tax obligations and tax authorities will manage them through tax codes.
For business types, when establishing a company after June 1, 2010, the enterprise code will also be the tax code of the enterprise. As the example in the image above, the business code is 03012197, which is also the tax code of the business.
In case of establishment of a business household, an enterprise established before June 1, 2010 after obtaining a business household certificate or business registration certificate must go through the tax office to register a code. Tax registration certificates are issued according to the following form:
Corporate tax code in Vietnam
In the tax registration certificate, the taxpayer identification number is the information in the first line "taxpayer identification number".
At present, enterprises with two types of business registration certificate and tax registration certificate can apply to the business registration authority to change the business registration certificate, and combine the registration number enterprise, enterprise code and tax code into a common code, namely: business code.
Companies can be registered in Vietnam in a number of different configurations. Four key considerations are outlined below:
A company in Vietnam can be either a Limited Liability Company (LLC) or a Joint Stock Company (SC, also known as a Joint Stock Company or JSC). Joint-stock companies are suitable for large and medium-sized enterprises with many shareholders. LLCs simplify shareholding and governance arrangements.
Shareholders can be foreigners or locals. While foreign shareholders can register a company within an acceptable time frame, registration is simpler and faster for companies wholly owned by local shareholders.
Shareholders can be individuals or companies. Please note that the documentation requirements for these two types of shareholders are different, as described below.
The total number of owners of an LLC may not exceed 50 members.
LLCs require at least one director. Directors can be of any nationality and reside outside Vietnam.
The company will also require a legal representative of a Vietnamese resident. The roles of director and legal representative can be performed by the same person, but need not be.
The minimum amount of capital required to set up an LLC is not strictly defined, with the exception for certain specific types of business such as medical or tourism. However, the registered capital should be sufficient to meet the needs of the business.
Companies that specialize in software development or consulting are not considered capital-intensive by the Ministry of Planning and Investment because large factories or expensive machines are not required. However, the registered capital declared at the time of application should be sufficient to open an office and pay staff salaries during the initial operation phase.
Newly registered businesses need to pay attention to the regulations on business registration
There are four important changes for investors under Decree 122.
The company's social security code is the same as the business code (company registration number), which is also the tax number.
You do not need to submit a copy of the notarized company's corporate registration certificate in order to submit and register with the Ministry of Labor, Invalids and Social Affairs (“DoLISA”) or the Ministry of Social Insurance in Vietnam.
The office, branch, or representative office registration application contains information on (i) employment declaration, (ii) how to apply for social insurance, and (iii) how to use the invoice. These datasets are sent to the Commercial Registry and automatically shared with other related agencies.
* According to Official Letter No. 117, if a company established before October 15, 2020, wants to change the type of business, it is not necessary to fill in the above supplementary information when applying for the change of business entity.
The effect of this decree is that the following Vietnamese authorities will coordinate and support the implementation of changes in licensing procedures.
New regulations on business registration of Vietnam
Investors must first select the tax invoice format to be used when applying to set up a company. This is different from previous legislation which carried out these steps after obtaining the investment and company registration certificate (IRC and ERC). Investors can choose from:
Print Self-Service Invoices
Order a printed invoice
Use of electronic invoices
Purchase invoices from the tax office.
Decree No. 122 stipulates that company registration includes a declaration of initial labor use. However, the company must confirm with the State Department of Labor whether it is necessary to submit Form 5 under Circular No. 23/2014/TT-BLĐTBXH. Even if a company has an employment contract with an employee, it must submit a Form 5 with details of each employee to the Department of Labor.
The taxpayer number of the company, branch or representative office is also used as the social insurance code, and the company must legally register and submit the social insurance payment method (monthly, semi-annually, annually).
Due to the new regulations, the Vietnam company registration application form has been changed to reflect the process of recording additional information, including:
Company establishment registration form
Branch/Representative Office Registration Notification Form
Investors need to ensure they use the new/updated form.
It is cheaper to hire local labor in Vietnam compared to other countries like China and Indonesia. Taking into account the statistics, the monthly minimum wage for Vietnamese workers adds up to $70. Compared to China, this is less.
The cost of living in Vietnam is very low. Also, if investors have to build warehouses in Vietnam, it is cheaper than China.
Vietnam borders China. Therefore, Vietnam can gain an advantage through the supply chain established with China. Therefore, Vietnam has easy access to raw materials and capital goods.
Investors registering companies in Vietnam will also benefit from Vietnam’s double taxation treaties with other countries such as South Korea, Japan and India. Therefore, income earned by Vietnamese investors will not be double taxed. Money earned in Vietnam can easily be returned to your home country.
Vietnam offers world-class infrastructure. Mainland Vietnam has three or more economic zones. Vietnam has more than 300 industrial parks and 3 high-tech parks. All these benefits will allow investors to register their companies in Vietnam.
Setting up a Vietnamese company registration number format is becoming more and more simple and convenient thanks to government incentives. This has helped Vietnam become an attractive country for foreign investment in recent years.