According to the provisions of the Law on Enterprises 2020, enterprises have the right to add or remove business lines in accordance with development needs. However, enterprises need to notify the Department of Planning and Investment where they register for establishment when there is a change.
Currently, there are no specific regulations on the concept of business lines and lines. However, Decision 27/2018/QD-TTg regulates the system of Vietnam's economic sectors and is issued together with the Appendix to the list of business line codes.
Clauses 1 and 2, Article 7 of the Law on Enterprises 2020 stipulate that enterprises are entitled to:
- Autonomy in business lines that are not prohibited by law.
- Proactively select business organizations; select business lines, occupations, areas and business forms; adjust the scale and business lines. Therefore, enterprises have the right to freely choose the form of business organization and business lines according to Decision 27/2018/QD-TTg. When there is a need to expand, enterprises are allowed to change and supplement business lines in accordance with the law
- Addition of business lines means the procedures carried out by enterprises at the Department of Planning and Investment when they want to expand their business activities by adding one or more new business lines to the business registration certificate.
- Change of business line is an administrative procedure conducted at the Department of Planning and Investment when an enterprise wants to add or remove a business line in the certificate.
1. Preparation of information and documents:
- Determine whether the change is an addition or subtraction of business lines.
- Supplementing the business lines that need to be prepared for the planned industry codes, adding and subtracting the business lines that need to be listed.
2. Prepare a complete dossier as prescribed:
- The dossier of supplementation and change of business lines includes detailed consulting documents.
3. Submit the dossier at the business registration office:
- The dossier is submitted online on the national portal for appraisal.
4. Appraisal of validity:
- Within 03 working days, the business registration office shall appraise the contents of the dossier as prescribed.
5. Issuance of certificates:
- If the dossier is valid, the enterprise shall prepare a hard copy to the Business Registration Office
- Department of Planning and Investment to receive a certificate of new business line.
2 member limited liability company:
- Notice of change of enterprise registration content according to the form.
- Decision and minutes of the meeting of the Board of members on the changed contents.
- Copies of relevant documents such as tax registration certificates.
- Power of attorney (if any), and personal identification papers of the authorized person.
Joint Stock Company:
- Notice of change in business lines according to the form.
- Decision and minutes of the General Meeting of Shareholders. - Copies of relevant documents such as investment certificates.
- Power of attorney (if any).
Partnership:
- Notice of change in business lines according to the form.
- Decisions and minutes of meetings of general partners.
- Copies of relevant documents such as investment certificates.
- Power of attorney (if any).
1-member limited liability company:
- Notice of supplementation of business lines according to the form.
- Decision and minutes of the company's owner's meeting.
- Copies of relevant documents such as investment certificates
-Paper of attorney (if any)
- Notice of change of enterprise registration content is the most important and complex document, which needs to be used in the correct form as prescribed.
- When recording the economic line code in the dossier, write the level 4 industry code according to Decision 27/2018/QD-TTg.
- For industries with specialized laws governing or requiring practice certificates, enterprises need to find the corresponding code and write the level 4 industry code in the dossier.
- The dossier of change of business line shall be scanned and submitted at the National Enterprise Registration Portal.
- After receiving the notice of valid dossier, the enterprise shall submit a paper dossier at the Business Registration Office of the Department of Planning and Investment.
According to Article 32 of the Law on Enterprises, if the enterprise fails to notify the change within 10 days, the enterprise shall be administratively sanctioned according to Decree 50/2016/ND-CP:
- Past 01-30 days: a fine of between VND 500,000 and 1,000,000.
- Past 31-90 days: a fine of between VND 1,000,000 and 2,000,000.
- Past 91 days: a fine of between VND 2,000,000 and 5,000,000
Within 03 working days, the Business Registration Office will consider the dossier. If the dossier is unsatisfactory, there will be a notice of amendment and supplementation, and the enterprise must send it back within 03 working days.
Please contact us:
A DONG IP – TRANSLATION – CONSULTANCY COMPANY
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Tel: 84-28 3926 0120 – 39260125
Email: consultant@a-dong.com.vn; info@a-dong.com.vn
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