Notify company business line change in Vietnam

Summary: Notify company business line change is a crucial step for businesses in Vietnam. This article covers the legal procedures, documents required, and potential penalties for not notifying changes in your business lines. Whether you’re expanding or diversifying, following the appropriate steps is essential to ensure compliance with Vietnamese law.

Understanding Business Line Changes in Vietnam

Business lines, or sectors of activity a company engages in, are fundamental to a company’s legal registration in Vietnam. When a business wishes to add or remove a specific business line, it must notify the relevant authorities to avoid legal issues. The process to notify company business line change is regulated under Vietnamese law, ensuring that the company’s legal status reflects its actual business activities.

When Should You Notify a Business Line Change?

According to the Our Related Services, companies in Vietnam must notify changes to their registered business lines in specific circumstances, such as:

• Introducing new products or services.
• Expanding into new markets or industries.
• Removing a business line that is no longer active or profitable.

Failure to notify company business line change promptly can result in penalties and could affect the company’s ability to operate legally.

Legal Basis for Notifying Business Line Changes

Notify company business line change is governed by several legal frameworks in Vietnam. The most relevant legislation includes:

• Law on Enterprises (2020): This law outlines the obligations of enterprises to update their registered information, including business lines.
• Decree 47/2021/ND-CP: This decree provides detailed guidelines on implementing the Vietnamese Enterprise Law, including regulations about notifying changes in company business lines.
• Decree 01/2021/ND-CP: This decree focuses on the registration procedures and the required documentation for businesses in Vietnam.

Steps to Notify Company Business Line Change

To notify company business line change in Vietnam, follow these steps:

1. Prepare the Required Documentation: This includes the resolution or decision from the company’s board approving the change, and an updated list of business lines.
2. Submit the Change Request: The company must submit the business line change request to the Department of Planning and Investment (DPI). This can be done online through the National Business Registration Portal.
3. Receive Confirmation: Once the changes are processed, the company will receive an updated business registration certificate reflecting the new or removed business lines.

Common Mistakes and Penalties

It is critical to avoid common mistakes during the process of notifying business line changes. Some businesses fail to submit complete documentation or provide incorrect information. In such cases, authorities may reject the application, delaying the process and potentially incurring penalties.

Penalties for failure to notify company business line change in a timely manner can include fines ranging from 5 million VND to 15 million VND, depending on the severity and duration of the delay.

Conclusion

Notify company business line change is a vital procedure for maintaining compliance with Vietnamese business laws. Timely notification ensures that your business operations are fully transparent and legally recognized by the authorities. Failing to notify such changes could result in fines, operational delays, or other legal complications. If you need assistance, Unilaw Lawyers are well-versed in Vietnamese corporate law and can help navigate these changes smoothly.

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