Under the Law on Enterprises 2020, enterprises have the right to add or remove business lines to align with their development needs. Any changes must be reported to the Department of Planning and Investment where the enterprise is registered.
Under the Law on Enterprises 2020, enterprises have the right to add or remove business lines to align with their development needs. Any changes must be reported to the Department of Planning and Investment where the enterprise is registered.
Currently, there is no specific regulation defining "business lines." However, Decision 27/2018/QD-TTg establishes the system of Vietnam's economic sectors and includes an appendix with business line codes.
According to Clauses 1 and 2, Article 7 of the Law on Enterprises 2020, enterprises are entitled to:
- Autonomy in choosing business lines that are not prohibited by law.
- Select business organizations, lines, occupations, areas, and forms of business, as well as adjust the scale and scope of their business activities.
Enterprises are therefore free to select and modify their business lines in accordance with Decision 27/2018/QD-TTg and may make changes as required by their operational needs.
- Addition of Business Lines: Refers to the process where enterprises seek to expand their business activities by adding one or more new business lines to their registration certificate.
- Change of Business Lines: Involves administrative procedures to add or remove business lines from the certificate.
1. Preparation of Information and Documents:
- Determine if the change involves adding or removing business lines.
- Prepare the industry codes for the new lines and list any lines to be removed.
2. Prepare a Complete Dossier:
- The dossier should include detailed consulting documents relevant to the changes.
3. Submit the Dossier:
- Submit the dossier online through the national portal for appraisal.
4. Appraisal of Validity:
- The Business Registration Office will appraise the dossier within 3 working days.
5. Issuance of Certificates:
- If the dossier is valid, the enterprise must submit a hard copy to the Business Registration Office to obtain the updated business line certificate.
- Two-Member Limited Liability Company:
- Notice of change in enterprise registration content (using the prescribed form).
- Decision and minutes from the Board of Members regarding the changes.
- Copies of relevant documents (e.g., tax registration certificates).
- Power of attorney (if applicable) and identification papers of the authorized representative.
- Joint Stock Company:
- Notice of change in business lines (using the prescribed form).
- Decision and minutes from the General Meeting of Shareholders.
- Copies of relevant documents (e.g., investment certificates).
- Power of attorney (if applicable).
- Partnership:
- Notice of change in business lines (using the prescribed form).
- Decisions and minutes from meetings of general partners.
- Copies of relevant documents (e.g., investment certificates).
- Power of attorney (if applicable).
- One-Member Limited Liability Company:
- Notice of supplementation of business lines (using the prescribed form).
- Decision and minutes from the company owner's meeting.
- Copies of relevant documents (e.g., investment certificates).
- Power of attorney (if applicable).
- The Notice of Change of Enterprise Registration Content is crucial and must be completed using the correct form.
- When recording the economic line code, use the level 4 industry code as specified in Decision 27/2018/QD-TTg.
- For industries governed by specific laws or requiring practice certificates, ensure the appropriate code is included in the dossier.
- Submit the dossier electronically through the National Enterprise Registration Portal.
- Upon receiving notice of a valid dossier, submit the hard copy to the Business Registration Office of the Department of Planning and Investment.
According to Article 32 of the Law on Enterprises and Decree 50/2016/ND-CP:
- For delays of 1-30 days: Fines range from VND 500,000 to VND 1,000,000.
- For delays of 31-90 days: Fines range from VND 1,000,000 to VND 2,000,000.
- For delays exceeding 91 days: Fines range from VND 2,000,000 to VND 5,000,000.
The Business Registration Office will review the dossier within 3 working days. If the dossier is incomplete, the office will issue a notice of required amendments, which must be resubmitted within 3 working days.
If you need more information or support, please contact ADVN LAW for detailed advice.
- Address: F2&F3, No. 2 Phung Khac Khoan, Da Kao Ward, District 1, Ho Chi Minh City
- Phone: 0903.693.301 – 0909.393.329
- Email: vanphongluatsuadvn@gmail.com; advnlaw@gmail.com
