A sole proprietorship is an enterprise owned by a single individual whose liability for its entire operation is equal to his/her total assets. This is one of the 5 types of businesses prescribed by laws of Vietnamese, which is most suitable for small-scale businesses with the need to streamline their management apparatus. So how is the procedures of sole proprietorship establishment performed? Please follow the article below.
1. Contents to be noted in sole proprietorship establishment
– Name of enterprise: Not duplicated or cause confusion with other enterprises within the territory of Vietnam.
– Headquarter of enterprise: Haing lawful use, a clear address, is not located in the local planning area, is not located in an apartment building.
– Business lines: Guaranteed to be included in the national economic industry system or specialized laws, not in the business lines banned from business investment;
– Charter capital: Ensuring lawful capital sources and legal capital levels for business lines if required;
– Sole proprietorships are not allowed to issue any type of securities.
– Each individual is only entitled to establish one sole proprietorship. The owner of a sole proprietorship cannot simultaneously be the owner of a business household or a general partner of a partnership. At the same time, sole proprietorships are not allowed to contribute capital to establish or purchase shares or capital contributions in partnerships, limited liability companies or joint stock companies.
2. Registration procedures for sole proprietorship establishment
a. Step 1: To prepare and submit application
Documents for the registration of sole proprietorship establishment include:
– Application for business registration;
– Copies of personal legal documents for owner of the sole proprietorship.
Applications for registration of sole proprietorship establishment can be submitted by one of two methods:
– Submitting to the One-Stop division of Department of the Business Registration Office under the Department of Planning and Investment (Business Registration Office) of the province/city where the enterprise is headquartered; or
– Submitting online at the National Business Registration Portal.
b. Step 2: Documents processing
Within 03 working days from the date of receiving valid documents, the Business Registration Office completes and returns the results of the administrative procedures.
c. Step 3: Receiving the results of registration of sole proprietorship establishment
In case the dossier is valid and a Enterprise Registration Certificate is issued, the enterprise will receive the results directly at the Business Registration Office or by post (in case of authorization of business registration to the postal unit).
>> RIGHTS TO INDUSTRIAL DESIGN, DETERMINATION OF INFRINGEMENT ELEMENTS https://linconlaw.vn/rights-to-industrial-design-determination-of-infringement-elements/
>> REPORT ON PERSONAL DATA PROCESSING, WHAT ARE THE RESPONSIBILITIES OF ENTERPRISES? https://linconlaw.vn/report-on-personal-data-processing-what-are-the-responsibilities-of-enterprises/
3. Competent agency for handling
Business Registration Office – Department of Planning and Investment of the province/city where the enterprise is expected to locate headquarter.
- Law on Enterprise 2020;
- Decree 01/2021/ND-CP on business registration promulgated on January 4, 2021.
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