The overabundance and complexity in establishing enterprise unworthily restrain the investors from participating the market, adversely affect their business opportunities and dampen their enthusiasm. Therefore, by virtue of economic development, the amendment of enterprise registration procedure, for rationalizing the process of “giving birth” of enterprise and supporting the investor, is always prioritized by the Vietnamese Government. Enacting the first Decree of the year 2021 (“Decree 01/2021”) which is on enterprise registration and replaces Decree 78/2015/NĐ-CP amended in 2018, the Government continuously pursuits such orientation with some noticeable “good news” for businessman and businesswoman.

Enterprise code number (ECN) is not only Tax number, but also Social Insurance Participation number

ECN has been previously made the same number as Tax number. With new regulation, the simplification process advance a step further by making the Social Insurance Participation number the same as the formers. From now on, the enterprises need to remember only one designated number while working with enterprise management, tax or social insurance administrations. Moreover, the branch/representative office number is made the same number as its tax number.

Abolition of paper application submission for the online enterprise registration

Formerly, after registering online and being notified, within 30 days, the enterprises had to submit paper application for the registration agency’s comparison with the electronic version before the enterprise registration certificate could be officially issued. The purpose of this provision is preventing document counterfeiting, but it also made procedures become complicated unnecessarily.

Therefore, with new regulation, the requirement of paper application submission has been completely abolished. It is not only the simplification of administrative procedures, but also signs of digital transformation and building e-government which is more business-friendly.

The enterprises is entitled to file lawsuit if disagree with refusal of expected enterprise name registration

The Vietnam enterprise law requires several standards for the enterprise’s name, such as not to cause confusion, infringe upon the others’ trademark or violate the mores and fine customs. The licensing agencies shall evaluate and may reject the expected enterprise’s name for registration. The former regulation stated that this decision is final and unable to be objected.

Decree 01/2021 points out a new way for the enterprises disagreeing with the above decision: filing administrative lawsuit. This provision clarifies a fundamental and legitimate right of the enterprises and ensures that the registration agencies’ decisions would be judged independently, objectively and under multi-dimensional perspectives after due hearing of the parties according to legal procedures.

Refund of publication fee if enterprise registration is rejected

The enterprises must pay the enterprise registration publication fee (currently VND100,000) prior to receipt of results from State agencies. However, previously, if their application is rejected, the laws did not specify whether the enterprises are entitled to receive the reimbursed publication fees.

Therefore, Decree 01/2021 reasonably clarifies that such publication fees shall then be reimbursed to the enterprises. The new regulations contribute to the elimination of previous confusing gaps, create favorable conditions and aim at protecting the benefits – though not much but justifiable – of the investors.