Post-Establishment Procedures for Businesses in Vietnam

Post-establishment procedures for businesses include submitting initial tax declarations, paying business license tax, hanging company signage, opening a bank account, purchasing a digital signature, purchasing and announcing the issuance of electronic invoices, and other necessary steps. This article provides detailed information on each post-establishment procedure for businesses.

Filing Initial Tax Declarations and Paying Business License Tax

One of the essential procedures after a business starts operating is submitting initial tax declarations and paying the business license tax. These steps are fundamental for a business to officially register with the tax authorities and become a legitimate tax-paying entity.

Paying Business License Tax:

The business license tax is a mandatory fee that businesses, organizations, and individuals must pay during their business activities. According to Clause 8, Article 3 of Decree 139/2016/ND-CP, new establishments are exempt from the business license tax for the first year of establishment or commencement of production and business activities (from January 1 to December 31). Therefore, newly established businesses are exempt from paying the business license tax in the first year (from January 1 to December 31). From the second year onwards, businesses must pay the business license tax as usual, based on their registered capital.
Article 4 of Decree 139/2016/ND-CP and Article 4 of Circular 302/2016/TT-BTC stipulate the following business license tax rates:

Organizations Engaged in Production and Business Activities:

Household businesses and individuals engaged in production and business activities:

Opening a Bank Account for the Business
Given the numerous banks offering various service packages, businesses may find it challenging to decide where to open a bank account. 

To assess a bank's reliability, consider three crucial criteria:

• Financial Capacity: Reflected in the bank's most recent financial statements. This helps determine the bank's ability to settle debts and fund future projects and business activities.
• Media Reputation: Evaluated through Media Coding, which involves coding articles about the bank from influential media channels. Positive and credible articles from mainstream media enhance the bank's reputation.
• Surveys of Stakeholders: Feedback from customers, partners, and government agencies provides important insights into the bank's reliability.

Required Documents to Open a Bank Account for the Business

• To open a bank account for your company, you need to prepare the following documents:
• Business Registration Certificate
• Company Seal
• Company Charter
• Identity Card or Passport of the Business Owner and the Representative of the Business
• Signature Samples of the Business Owner and the Accountant

After submitting all necessary documents, the bank will assess and issue a separate bank account for the business. This account will be used for financial transactions such as receiving payments, disbursing funds, and transferring money during business operations.

Purchasing a Digital Signature

Next, a critical step after the business starts operating is purchasing a digital signature. This signature will be used to sign and authenticate documents, files, and electronic transactions of the business.

Role of the Digital Signature:

Essentially, a digital signature enables businesses to conduct electronic transactions securely, legally, and with legal validity. Key applications of digital signatures include:

• Signing contracts, minutes, and electronic documents
• Signing electronic invoices
• Signing reports and electronic declarations submitted to state agencies
• Conducting electronic transactions with partners and customers

Procedure for Purchasing and Using a Digital Signature:

To purchase a digital signature, you need to contact certified public digital signature service providers authorized to operate in Vietnam. Zora is one of the units supporting customers in purchasing and installing digital signatures quickly and reliably. Customers can contact the hotline for the best support.
The procedure for purchasing and using a digital signature includes:

• The business submits registration documents for purchasing the digital signature, including the Business Registration Certificate and the ID/Citizen Identification of the company's representative.
• The certification service provider verifies the information and issues an electronic certificate for the business.
• The business installs the software, token, or card containing the digital signature for use.
• The business signs documents and conducts electronic transactions using the digital signature.

Note: Digital signatures typically have a validity period of 1-3 years, depending on the requirements. When the signature expires, the business needs to renew or purchase a new one to continue using it.

Purchasing and Announcing the Issuance of Electronic Invoices

Electronic invoices are invoices created, stored, and exchanged in electronic form according to legal regulations. Purchasing and announcing the issuance of electronic invoices are mandatory post-establishment procedures for businesses.
To purchase electronic invoices, businesses need to follow these steps:

• Register to use electronic invoices with the local Tax Department.
• Select a reputable electronic invoice software provider that complies with legal regulations.
• Install and use the electronic invoice software to create and store invoices.

Purchasing and announcing the issuance of electronic invoices is crucial for complying with legal regulations and facilitating business operations.

Additional Procedures for Business Owners to Note

In addition to the basic post-establishment procedures mentioned above, businesses must complete several other steps to ensure lawful and efficient business operations.

Completing the Required Licenses:

Businesses must ensure they have all necessary licenses according to legal regulations. This includes business licenses, construction permits (if any), environmental permits, labor permits, etc.

Registering Social Insurance for Employees and the Business:

Registering social insurance for employees and the business is an important step to protect the rights and social welfare of both employees and the company. Additionally, foreign-invested companies need to register an online account with the Immigration Department to submit visa applications for foreigners.
These are the post-establishment procedures for businesses. Understanding and correctly performing these procedures help businesses comply with the law and facilitate smooth business operations. We hope the information in this article will be useful for newly established businesses.