HIGHLIGHTS ON MECHANISM OF COORDINATION AND STREAMLINE FOR ESTABLISHMENT OF COMPANIES UNDER NEW ENTERPRISE LAW IN VIETNAM

By bizconsult Law Firm

Bizconsult.vn


Decree No. 122/2020/ND-CP on the coordinating and streamlining of procedures for establishment registration of enterprises, branches and representative offices, initial declaration of labour usage, issuance of codes for units participating in social insurance, registration of invoices usage of enterprises is passed by the Government on October 15, 2020 (the “Decree 122”) with the following notable contents:

1.The mechanism for coordinating and streamlining provided in Decree 122

Decree 122 provides the mechanism for coordinating and streamlining of four procedures applicable to enterprises, branches, and representative offices upon their establishments, including (i) Establishment registration of enterprises, branches and representative offices; (ii) Initial declaration of labour usage; (iii) Issuance of codes for units participating in social insurance, and (iv) Registration of invoices usage with the Business Registration Office, which is the focal agency for dossier-receiving and result-delivering.

Thus, when implementing the mechanism for coordinating and streamlining, enterprises, branches, and representative offices shall no longer have to carry out the procedures of initial declaration of labour usage and registration of self-printed invoices usage, invoices printed on order usage. Also, Decree 122 regulates that enterprise codes, branch and representative office codes shall be used as codes for units participating in social insurance.

Although the mechanisms of Decree 122 are only applied when establishing enterprises, branches, and representative offices, it still helps to streamline some administrative procedures, improve the business environment, facilitate and promote start-up businesses.

2. The coordinated and streamlined dossiers specified in Decree 122

The coordinated and streamlined dossiers specified in Decree 122 comply with the Law on Enterprise and the Decree on enterprise registration, in which (i) The form of Application for enterprise registration specified in Appendix I-1, I-2, I-3, I-4 and I-5 and (ii) The form of Notice of branch/representative office operation registration specified in Appendix II-11 issued together with Decree 122 shall replace the corresponding forms in Appendix I-1 to I-5 and Appendix II-11 issued together with Circular No. 02/2019/TT-BKHDT.

Compared to the replaced forms, the new forms issued together with Decree 122 are basically supplemented with two more items: (i) Invoice usage registration (including options: Self-printed invoices, Invoices printed on order, E-invoices and Invoices purchased from tax authorities) and (ii) Information on social insurance premium payment (select one of payment methods: monthly, every 3 months, every 6 months).

Decree 122 came into effect on 15th October 2020.

 

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