What is a business code? Is it the same as a tax code?

In the realm of business registration and taxation, understanding the various identification codes can be quite perplexing. Some common question that arises is: What is the business/company number? Is the business number a tax code? What is the procedure for registering a business or company code? Clarifying this distinction is essential for entrepreneurs and business owners to navigate the regulatory landscape accurately. Refer to the article below, S4B will help you to answer those question and explore the relationship between the business number and the tax code, highlighting their similarities, differences, and their respective roles in the business and taxation systems. Let’s get started

1. What is a Business/Company Code? Characteristics of a Business/Company Code

1.1 What is a Business/Company Code?

According to Article 29 of the 2020 Enterprise Law, a business/company code is a numerical representation of a business in administrative procedures, tax obligations, and business transactions.

Understanding the business code in Vietnam system can be challenging for foreign business

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1.2 Is business code the same as a tax code?

Yes, business code and tax code are the same. According to Article 8, Clause 1 of Decree 01/2021/NĐ-CP, each business is assigned a unique identification number known as the Business Code. This code serves multiple purposes as it acts as both the tax identification number and the social insurance identification number for the business entity. This regulation ensures that each business is assigned a distinct code that is used for tax-related matters as well as participation in social insurance programs.

1.3 Characteristics of a Business/Company Code

The characteristics of a Business/Company Code are crucial for understanding its role and significance in business operations. This unique numerical representation serves as an identification number for businesses in administrative procedures, tax obligations, and business transactions. Here are some key points that business should note:

Firstly, it functions as the tax identification number, comprising a 10-digit character sequence. This code is issued to businesses upon their establishment and is officially recorded on the business registration certificate. Each business is assigned a unique business/company code by the tax authorities, ensuring proper identification and differentiation. Importantly, this code remains closely associated with the business from its inception until its eventual dissolution. It is never reissued to other businesses or companies, further emphasizing its exclusivity.

Additionally, the business/company code serves as the social insurance code, facilitating the business entity’s participation in social insurance programs. This multifaceted code plays a pivotal role in legal compliance, financial management, and the smooth functioning of businesses across various sectors.

The registration process for obtaining a business or company code involves several essential steps. Since the business code serves as the tax code and is issued during business registration procedures, the registration process for obtaining an enterprise number (tax code) aligns with the process for establishing a business.

2. Procedures for registering an enterprise number (registration of establishment of an enterprise)

To initiate the process, it is necessary to prepare the required business registration documents. These documents typically include:

  • Application for the registration of enterprise establishment
  • Company rules
  • List of shareholders or founding members
  • Notarized copy of the Citizen Identification Card (CCCD) or passport of the legal representative, member, or shareholder of the company
  • Power of attorney, if the person conducting the registration procedures is not the legal representative
  • Notarized copy of the Citizen Identification Card (CCCD) or passport of the authorized person.tax

Exploring the procedures for registering an enterprise number

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By compiling and submitting these necessary documents, businesses can proceed with the registration process and acquire the enterprise number (tax code). This code plays a fundamental role in establishing the business’s legal identity and ensuring compliance with tax regulations. After business submit the application at the Department of Business Registration of the province or city where the company’s headquarters are located, it is estimated that business will receive the results within 3 working days.

3. What is a Dependent Unit Code?

The Dependent Unit Code refers to the identification number assigned to branch offices, representative offices, and business locations of a company.

3.1. What is a Branch Office or Representative Office Code?

A Branch Office or Representative Office Code is a 13-digit alphanumeric sequence issued by the state authorities upon the establishment of a branch office or representative office.
Branch offices and representative offices possess distinct characteristics that define their identification and role within a company’s operations.

Firstly, each branch office or representative office is assigned a unique code that remains with it throughout its existence, from the moment of establishment until dissolution. This code acts as an exclusive identifier, facilitating proper documentation and tracking of the office’s activities. Additionally, the branch office or representative office code serves a crucial function as the tax identification number for the respective office. This ensures compliance with tax regulations and facilitates efficient taxation processes.

3.2 What is a Business Location Code?

The Business Location Code is a 5-digit alphanumeric sequence assigned to each business location. It is issued sequentially from 00001 to 99999.
The business location code is not concurrently the tax code of the business location.

If the business location is in the same province as the head office of the company, the tax code of the business location is the same as the tax code of the managing company/branch;

Meanwhile, If the business location is different from the company’s head office, it is necessary to carry out procedures for registering a tax code for the business location.
If your business is looking to experience a seamless and hassle-free process for Registration and Obtaining Tax Code, please contact S4B. Our expert team is here to assist you every step of the way, ensuring compliance and efficiency in obtaining the necessary tax identification numbers for your business locations. Say goodbye to complexities and delays, and let S4B handle the registration process for you. Contact us today to learn more about our comprehensive services and take the first step towards smooth and compliant tax registration.

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