Vietnam Cuts Enterprise Registration Fees - Vietnam Briefing News
Vietnam’s Ministry of Finance issued Circular No 47/2019/TT-BTC reducing enterprise registration certificate (ERC) fees or business registration fees by half. The new circular went into effect on September 20.
The new ERC rates
As per the circular, the fee for issuance, re-issuance and changing information for an ERC has been changed to US$2.14 (50,000 VND) from the earlier US$4.28 (100,000 VND). This includes certificates for the operation of branches and representative offices (ROs). Fees for publication of information about enterprise registration has also been reduced to US$4.28 to US$ 12.8 (300,000 VND).
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Businesses that apply online to register their business are exempted from ERC fees.
ERCs are required for all projects that want to set up new entities within Vietnam. The issuance of an ERCs is accompanied by a number that doubles up as a tax registration number of the entity.
Investors applying for an ERC should have the following documents prepared:
- Application for enterprise registration;
- Company charter;
- List of board members;
- List of legal representatives; and
- Letters of appointment and authorization.
Any document that is in a foreign language must be translated into Vietnamese and notarized by consular officials.
The circular also lists instances when waivers or exemption from enterprises registration fees are granted:
- Businesses that supplement or change information due to administrative boundaries;
- Entities that register for dissolution, or temporarily suspend operations or shut down branch offices or ROs;
- State agencies that provide information that serves the government; and
- Small and medium-size businesses that convert from a household business for the first time.
Starting a business in Vietnam comes with its challenges. However, the new rules are an attempt to make it easier for businesses to establish operations in Vietnam and will help in improving Vietnam’s ease of doing business rankings. The reduction in fees is in line with the government’s vision of attracting foreign investment and further propelling Vietnam’s economy.