HOW BUSINESS REGISTRATION FEES IN VIETNAM CHANGE WITH COMPANY INFORMATION UPDATES

Some costs apply only at setup while others like licensing fees are ongoing. Additionally changes to a company’s information may incur extra fees as required by Vietnamese law. This article offers an overview of the various fees involved in business registration fee in Vietnam and explains how they may fluctuate with company updates. Please note that this information reflects current rates; as fees are subject to periodic updates consult the latest legal regulations for precise guidance.

Publication and Business registration fee in Vietnam

Vietnam requires businesses to pay registration and publication fees to register their operations officially and update any changes. Let’s look at the essential details of these fees.

Fees for issuing and changing the ERC

The Certificate of Enterprise Registration (ERC) is an official document that provides information about a business's legal status. It is issued by a business registration agency and serves as proof that a business is registered. Companies must apply for this certificate when first established and update it if there are any changes in their registered information. The standard fee for issuing, reissuing, or changing the ERC, as well as the Certificate of Registration for the Operation of Branches, Representative Offices, and Business Locations, is VND 50,000 per transaction. This fee is waived if the business registration process is completed online, offering an incentive for businesses to utilize digital platforms.

Publication of business registration content

Once the ERC is granted, the company must announce its business registration details on the National Enterprise Registration Portal, a legal requirement under Article 32 of the Law on Enterprise 2020. Companies must make this announcement within 30 days of registration. According to Circular 47/2019/TT-BTC, the fee for this publication is VND 100,000 per transaction, which covers the official documentation and processing needed to display the company’s information publicly.

Businesses must pay specific fees when changing details such as business registration certificates

Other mandatory fees for company operations

Beyond initial registration, several additional fees come into play when establishing and maintaining business operations in Vietnam. These fees include costs related to seal engraving, digital signatures, electronic invoices, and bank accounts, all of which serve different operational functions within a company. With G2B, you can streamline your setup process and focus on your core business activities. Our dedicated team is here to help you with all your needs. G2B services provide assistance in setting up a business in Vietnam, offering professional and reliable support, guiding businesses through proper company establishment and annual compliance, opening local/digital bank accounts, ensuring smooth operations, and minimizing legal risks from the outset.

Seal registration and engraving fees

A company seal is essential in Vietnam, as it validates business documents and legally signifies a company’s involvement. The type, number, and design of the seal can be chosen by the business, and each company can use the seal in various transactions, including signing official papers and contracts. The cost of registering a business seal varies from VND 300,000 to VND 500,000, depending on the complexity of the seal’s design and the number of seals needed. Registering the seal is mandatory, ensuring its legality and authenticity. The seal should be registered with relevant authorities, providing it with official standing for use in the company’s documents.

Cost of obtaining a digital signature

A digital signature is necessary for businesses that engage in electronic transactions, especially for the issuance and verification of electronic invoices. Digital signatures certify that electronic invoices are genuine and ensure that the correct entity issues them. The cost of acquiring a digital signature depends on the service provider and the duration of the subscription. Typically, digital signatures are priced between VND 2,000,000 and VND 3,000,000 for a three-year subscription. This fee enables companies to conduct secure and legally compliant online transactions, enhancing operational efficiency.

Costs related to electronic invoicing and bank account management

With the growing importance of digital documentation, electronic invoicing and bank account requirements have become essential considerations for companies in Vietnam.

Cost of electronic invoice software

Electronic invoices are now required for businesses operating in Vietnam, following the Government's mandate in Decree 123/2020/ND-CP. Effective from July 1, 2023, companies must issue and manage electronic invoices for transactions, which helps standardize records and improve data accuracy in financial reporting. The cost of electronic invoice software typically ranges from VND 2,000,000 to VND 3,000,000, depending on the software provider and features offered. This expense covers the software’s initial purchase and ensures the company’s ability to issue, manage, and store electronic invoices in line with Vietnamese regulatory requirements.

Updating company information is crucial for maintaining compliance with Vietnamese regulations

Bank account balance requirements

While not legally required, businesses are highly encouraged to open a bank account to facilitate transactions and tax payments. Electronic tax payments have become mandatory for many companies, streamlining tax administration and ensuring efficient processing. The minimum balance for maintaining a business bank account can vary by bank and currency. For VND accounts, companies should expect to maintain at least VND 1,000,000, while USD accounts typically require a balance of 50 to 100 USD. These requirements help cover ongoing account maintenance and transaction fees, which vary by financial institution.

Licensing fees and exemptions

Vietnam imposes an annual licensing fee on businesses based on their charter capital or revenue, as regulated under Decree 139/2016/ND-CP. However, some exemptions apply for newly established companies and those that convert from household businesses.

Standard licensing fees

Licensing fees apply annually, with the fee amount determined by a company's registered charter capital or investment capital. These fees are based on the information provided in the company’s business registration certificate and must be paid each year for the business to remain in good standing. The current rates are as follows:

• Companies with over VND 10 billion in capital: VND 3,000,000 per year.

• Companies with VND 10 billion or less: VND 2,000,000 per year.

• Branches, representative offices, and business locations: VND 1,000,000 per year.

Licensing fee exemptions

During the exemption period, any branches or representative offices established by these businesses also qualify for fee exemption, making it financially easier for emerging companies to operate in their early stages. Certain new and transitioning businesses qualify for fee exemptions:

• Newly established companies are exempt from the licensing fee for the first year of business operations.

• Small and medium-sized enterprises converting from household businesses enjoy a three-year exemption, beginning from the date the new business registration certificate is issued.

Compliance with regulatory requirements

Ensuring compliance with Vietnam’s regulatory environment is essential for smooth business operations. By staying informed about these requirements, companies can avoid penalties, manage expenses, and ensure legal adherence.

Staying updated with legal changes

The government periodically updates its regulations on business registration fee in Vietnam and requirements, including changes to licensing fees, publication rules, and reporting obligations. Monitoring legal updates, such as those outlined in Circular 74/2022/TT-BTC and Decree 22/2020/ND-CP, can help businesses remain compliant and avoid fines for non-compliance.

Keeping company records current helps ensure smooth operations and legal adherence

The role of a compliance strategy

A structured compliance strategy can be beneficial, especially as Vietnam’s regulatory landscape evolves. Regular reviews of business registration documents, timely fee payments, and utilizing online portals where available can help companies keep pace with changes and avoid penalties.

Business registration fee in Vietnam for company information updates are essential for regulatory compliance and transparency. Staying informed about these fees and requirements helps businesses operate smoothly and within legal boundaries in Vietnam. With G2B, you're not just choosing a consultancy to help setting up a business in Vietnam, you're choosing a partner who will stand by your side throughout your entrepreneurial journey. Contact G2B today to learn more about how we can help you with your business goal in Vietnam.