[New] Post Establishment Registration and Support
Upon establishing the new company registration with the Department of Planning and Investment, there are several crucial tasks that need immediate attention. The following article from SMART SOLUTION FOR BUSINESS COMPANY LIMITED provides detailed and specific instructions for each aspect. Once established, the enterprise attains legal status, enabling it to independently enter into contracts and engage in various production and business activities. However, to ensure seamless operations and prevent potential fines, the company should promptly address the following tasks.
1. Announcement of business registration content
According to Article 32 of the Enterprise Law 2020 (Enterprise Law), after being granted a Business Registration Certificate, a company must make a public announcement on the National Business Registration Portal and must pay a fee. Upon receiving a valid application, the recipient of the application can publicly register and pay directly (or transfer) according to instructions at the Business Registration Office – Department of Planning and Investment where the company is located. department.
2. Hang company name signs
Clause 4, Article 37 of the current Law on Enterprises clearly states: The company name must be attached to the head office. Therefore, if a business does not hang a sign, it can be subject to administrative sanctions or worse, having its tax code locked. Thus, to avoid the above consequences, immediately after business registration, the company can take photos or send copies to units that make advertising signs and business name signs to design as required.
What is needed to establish a company?
3. Declare and pay license fees
Currently, newly established businesses are exempt from license fees in the first year of establishment or production – business according to Article 3 of Decree No. 139/2016/ND-CP amended and supplemented by Point c, Clause 1 Article 1 Decree 22/2020/ND-CP. However, the company still needs to submit a license fee declaration. According to Clause 1, Article 10 of Decree 126/2020/ND-CP, the deadline for submitting the declaration is January 30 of the year following the year of establishment or commencement of production and business activities.
4. Register and activate electronic digital signature (USB Token)
An electronic digital signature has the same value as a business seal, supporting electronic tax declaration, electronic tax payment, social insurance declaration, invoice signing, etc. Therefore, companies need to choose a supplier. Providing reputable digital signature services to order digital signatures and register for use with the Tax Authority.
5. Open a bank account, register to declare and pay taxes electronically
Currently there are no regulations requiring businesses to open a bank account, however having an online transaction account brings a number of benefits, such as:
- Pay taxes without having to go directly to the bank or treasury;
- Demonstrate the professionalism of the business to partners and customers;
- Convenience in dealing with customers; Save time and money;
- Control and manage well the spending as well as financial issues of the business;
At the same time, current business law does not require businesses to notify the Department of Planning and Investment of their bank account number anymore, but after receiving a bank account, the company still has to fill in the information on Form 08. -MST Circular 105/2020/TT-BTC to add “New registration information” and then notify the Tax Department under direct management at the place of headquarters.
Procedures need to be followed after establishing a business
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6. Register to buy and Issue electronic invoices
According to Decree 123/2020/ND-CP, 100% of businesses must use electronic invoices. Therefore, if you do not transfer electronic data to the tax authority or transfer data later than the prescribed deadline, you may be subject to an administrative fine of up to 20 million VND (Pursuant to: Article 30 of Decree 125/2020 /ND-CP).
7. Choose the method of calculating value added tax (VAT)
When newly established, a company needs to choose an appropriate VAT calculation method. This not only greatly affects the amount of VAT payable periodically by the business but also directly affects customers. Based on the content of Article 9 of the 2008 Value Added Tax Law, there are currently two main methods to calculate VAT: deduction method and direct calculation method on revenue.
8. Organize the accounting apparatus
Pursuant to Articles 1 and 2 of the 2015 Accounting Law, after obtaining a business registration certificate, the company must organize an accounting apparatus, arrange employees or hire a practice unit to record accounting transactions. Economic operations arise in documents and accounting books; Submit all types of tax reports and tax finalization in accordance with accounting standards and regulations. In case of failure to appoint a chief accountant, the company may be subject to an administrative fine of up to 20 million VND (according to Article 17 of Decree 41/2018/ND-CP).
Many newly established companies often ignore or do not really pay attention to this task, leading to many problems during tax inspections and settlements due to gaps in accounting records. Therefore, in parallel with preparing other conditions, business owners need to focus on finding and appointing accountants to limit financial risks during operations.
If you still have concerns regarding Post Establishment Registration and Support, please contact SMART SOLUTION FOR BUSINESS COMPANY LIMITED for detailed advice from experts.
S4B Vietnam
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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