Once a business is officially registered with the Department of Planning and Investment, it gains legal status to enter contracts and conduct production and business activities. However, to ensure smooth operations and avoid penalties, the company must promptly complete the following eight critical tasks.

Note: All tasks are equally important. Businesses can flexibly schedule their completion based on their specific circumstances.

1. Publish Business Registration Information

Under Article 32 of the Enterprise Law 2020, businesses must publicly disclose their registration details on the National Business Registration Portal and pay the required fee within 30 days from the date of registration.

Upon receiving valid documents, the recipient can publish the information and pay the fee (in person or via bank transfer) as guided by the Business Registration Office at the Department of Planning and Investment where the company is headquartered.

Failure to comply may result in administrative penalties.

2. Display the Company Name Signboard

Article 37, Clause 4 of the Enterprise Law mandates that the company name must be displayed at its headquarters. Failure to do so may lead to administrative fines or, in severe cases, suspension of the tax code.

To comply, businesses should promptly order a signboard (e.g., a cost-effective mica sign measuring 20 x 30 cm) from an advertising or sign-making service, using a photo or copy of the business registration certificate.

3. Declare and Pay License Tax

3.1. Declare License Tax

Per Decree No. 139/2016/ND-CP (amended by Decree 22/2020/ND-CP), newly established businesses are exempt from license tax in their first year of operation. However, they must still submit a license tax declaration by January 30 of the year following establishment.

If there are changes in charter capital during the year, the updated declaration must be submitted by January 30 of the following year.

3.2. Pay License Tax

The annual license tax depends on the company’s charter capital:

  • Above VND 10 billion: VND 3 million/year
  • VND 10 billion or less: VND 2 million/year

Deadlines:

  • New businesses: Pay by January 30 of the year following establishment (e.g., a company established on January 5, 2023, must pay by January 30, 2024).
  • Small and medium enterprises transitioning from household businesses (after the 3-year exemption period):
    • If the exemption ends in the first half of the year, pay by July 30 of that year.
    • If the exemption ends in the second half of the year, pay by January 30 of the following year.

4. Register and Activate a Digital Signature (USB Token)

A digital signature is equivalent to a company seal and is essential for electronic tax filing, payment, social insurance declarations, and invoice signing. Businesses should purchase a digital signature from a reputable provider and register it with the tax authority.

Required documents:

  • Business Registration Certificate
  • Valid identification of the legal representative (e.g., ID card, citizen identification, or passport)

5. Open a Bank Account and Register for Electronic Tax Filing and Payment

While not mandatory, opening a bank account offers several benefits:

  • Facilitates tax payments without visiting banks or treasuries
  • Enhances professionalism with partners and clients
  • Simplifies transactions, saving time and costs
  • Improves financial management and transparency
  • Supports compliance with regulations for transactions over VND 20 million (per the Law on Corporate Income Tax 2008, amended 2013)

After opening an account, businesses must update their tax registration information using Form 08-MST (Circular 105/2020/TT-BTC) and notify the local tax authority managing their headquarters.

6. Register for and Issue Electronic Invoices

Decree 123/2020/ND-CP mandates that all businesses use electronic invoices. Failure to transmit invoice data to the tax authority on time may result in fines of up to VND 20 million (per Decree 125/2020/ND-CP).

Businesses should promptly register with a certified e-invoice provider to ensure compliance.

7. Select a Value-Added Tax (VAT) Calculation Method

New businesses must choose a VAT calculation method, as it significantly impacts periodic VAT liabilities and customer interactions. According to Article 9 of the VAT Law 2008, the two methods are:

  • Deduction method: Suitable for businesses with input and output VAT transactions.
  • Direct method: Based on revenue, typically simpler for smaller businesses.

The choice should consider the company’s customer base, tax obligations, operational convenience, and brand reputation.

8. Organize the Accounting System

Per Articles 1 and 2 of the Accounting Law 2015, businesses must establish an accounting system and appoint or hire qualified personnel to record economic transactions, maintain books, and submit tax reports in compliance with accounting standards.

Failure to appoint a chief accountant may result in fines of up to VND 20 million (per Decree 41/2018/ND-CP). Many new businesses overlook this, leading to issues during tax audits or settlements due to incomplete or inaccurate records.

To mitigate financial risks, business owners should prioritize hiring or outsourcing accounting services from the outset.

The above information is provided by Mys Law. For any questions regarding the content of this article, please contact 0969.361.319 or email: [email protected] for further clarification. Best regards!

Compiler: Nguyen Anh Quan