PROVISIONS ON LOCATION OF AN ENTERPRISE
- The Enterprise Law 2020 takes effect from January 1st, 2021;
- Decree No. 01/2021/ND-CP issued on January 4th, 2021 on Enterprise Registration;
Because the legislation does not specify the enterprise’s head office of the foreign traders, so that foreigners are required to meet the same requirements as domestic traders under the Law on enterprise. Client should note the following provisions:
1. Address information of the enterprise’s head office
Article 42 – The Enterprise Law 2020 stipulates:
“The head office of the enterprise is located in the Vietnamese territory, is the contact address of the enterprise and is determined according to the geographical boundaries of the administrative unit; have phone number, fax number and email (if any).” PROVISIONS ON LOCATION OF AN ENTERPRISE
According to the provisions of the Land Law 2014, administrative boundaries are understood as the boundaries of administrative units with geographical names and a number of key natural, economic and social factors. On the basis of defining administrative boundaries, the State will decentralize administrative units at all levels such as commune/ward, district/province, province/city… The determination of administrative boundaries, establishment and management management of administrative boundary records at all levels throughout the country as prescribed by the Government.
Thus, the head office according to the Enterprise Law 2020 is determined by address, including: hamlet, hamlet, hamlet, commune, ward, township, district, district, town, provincial city, province, and city directly under the province. center. PROVISIONS ON LOCATION OF AN ENTERPRISE
2. Conditions for the enterprise’s head office
a. General conditions PROVISIONS ON LOCATION OF AN ENTERPRISE
- Article 37 of the Enterprise Law 2020 stipulates: “The enterprise name must be affixed at the head office, branch, representative office and business location of the enterprise.”
- In addition, according to the provisions of the law in Article 6 of the Law on Housing 2014 and Decree No. 99/2015/ND-CP, the use of apartments and group houses can only be used for living, not for living. used for business purposes in any form, regardless of small, medium or large business enterprises. Therefore, the head office of the enterprise must not be located in an apartment or a dormitory used to live in.
In case the enterprise plans to locate its head office in an apartment building, it must ensure that the apartment building is built with mixed use for residential and business purposes (Office-tel apartments). In this case, the enterprise must prove that the function of the apartment intended to be used as a headquarters is a mixed-use apartment at the request of the Business Registration Authority. PROVISIONS ON LOCATION OF AN ENTERPRISE
b. Specific Conditions PROVISIONS ON LOCATION OF AN ENTERPRISE
In addition to the general regulations, due to the specific nature of many industries, the head office of an enterprise may need to meet specific conditions and other requirements in accordance with business conditions.
As in the case of karaoke service businesses, the business location is required to:
+ Ensure the conditions for fire prevention and fighting and security and order according to regulations.
+ The theater room must have a usable area of 20 m2 or more, excluding auxiliary works.
+ Do not place the door latch inside the singing room or place an alarm device (except for fire alarm devices).
3. Change of head office address
According to Article 28 of the Enterprise Law 2020, the content of an enterprise registration certificate includes the address of the head office of the enterprise. When the address of the head office is changed, the contents of the Business Registration Certificate will be changed. Therefore, the enterprise will have to register with the business registration authority when there is such a change. PROVISIONS ON LOCATION OF AN ENTERPRISE
4. Violation of regulations on head office location PROVISIONS ON LOCATION OF AN ENTERPRISE
According to the provisions of Decree 50/2016/ND-CP, the acts of companies that intentionally violate the headquarters will be administratively sanctioned and will be subject to a fine ranging from VND 10,000,000 to VND 15,000,000 due to dishonest and inaccurate declaration of business registration documents.
At the same time, enterprises must take remedial measures: Force registration of changes and re-notify information that enterprises have declared dishonestly and inaccurately. PROVISIONS ON LOCATION OF AN ENTERPRISE
If you still have any questions during the process of establishing the enterprise’s head office of the foreign traders, please contact businesslicense.vn for the best support.