BUSINESS REGISTRATION PROCEDURE IS SIMPLER FROM 10 October 2018

19/12/2018, 08:46 AM

Decree No. 108/2018/ND-CP takes effect from 10 October 2018 to amend Decree No. 78/2015/ND-CP on business registration in the direction of simplifying administrative procedures and improving the domestic business environment.

Key changes are as follows:

  • Business locations can be established easily

Decree 78 stipulates that business locations are only established in the province or city where an enterprise registered its head office address or branch. In the purpose of create favorable conditions for business expansion of the enterprises, Decree 108 removed this restriction. Currently, the enterprises can establish its business locations in any province. (Article 1.9 of Decree 108).

  • The administrative procedures are eased

It is not required to affix the seal on the enterprise registration application

From 10 October 2018, the enterprise is not required to affix its seal in the application for enterprise establishment, notice on change of enterprise registration information, resolutions, decisions and meeting minutes in the enterprise registration application.

Converting enterprise form concurrently changing enterprise registration information

The enterprises may register for its change of enterprise form concurrently register for its changes of enterprise registration information, notify its other changes of enterprise registration information, exception for registering for change to its legal representative (Article 1.5 of Decree 108).

Converting business household into an enterprise

Law on provision of assistance for small and medium-sized enterprises No. 04/2017/QH14 and Resolution No. 35/NQ-CP on enterprise development policy to 2020 stipulate the transformation of business households into enterprises. However, there are no specific documents detailing the dossiers and procedures. Now, Decree 108 clarifies the provisions on the dossiers on this transformation of entity, including the Business Registration Certificate, valid copies of the Tax Registration Certificates and attached corresponding application for enterprises establishment as stipulated in Decree 78 (Article 1.6 of Decree 108).

Financial statement is not required in case of capital decrease

In the event of charter capital decrease, the enterprises shall only commit to ensure full payment of debts and other property obligations after capital reduction and do not need submit its financial statement as stipulated in Article 44 Decree 78(Article 1.14 of Decree 108).

Notice on change the information of founding shareholders

The notice on change of founding shareholders information in a joint stock company under Decree 108 shall only be conducted when the founding shareholders have not paid or have paid a part of the registered shares. Other cases of changing the founding shareholders information such as transfer, donation, inheritance, merger, separation will not be required to register to change at the business registration office (Article 1.16 Decree 108).

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