Open Business in Vietnam: Legal business

Open business in Vietnam is an activity that is self-managed and operated by an individual or organization in order to make a profit, but such activity is required to comply with state regulations. So how does a business operate in accordance with the law? What are the state’s regulations for business households? The following article will help you answer those questions.

What kind of business is a legal business when open business in Vietnam

In fact, doing business is a right that citizens are allowed and encouraged to exercise in order to boost the economy of the country. The business will be protected by the state provided that the enterprise or business household strictly complies with the provisions of the law on business.

Legal business needs to have what factors when open business in Vietnam?

An enterprise doing business in accordance with the law is an enterprise operating under the protection of the State and when it fully meets the following 4 regulations.

Legal business lines

According to the provisions of the Constitution, individuals, and organizations have full autonomy in doing business. In particular, they can decide the form, size, place, and way of organizing their business. In addition, business lines are also content that business people have the right to decide for themselves, provided that those industries are legal.

What industry is a legal business? Legitimate business is the aviation industry banned by the state, such as:

• Debt collection service business
• Trading in drugs
• Trading in chemicals and minerals
• Trading in specimens of wild plants and animals derived from natural exploitation
• Prostitution business;
• Buying and selling human, tissues, corpses, body parts, and human fetuses (in addition to the ban on buying and selling human corpses and fetuses);
• Business activities related to human cloning;
• Fireworks business.

Have a business registration license when open business in Vietnam

The second regulation to answer the question of what is a legal business is that an enterprise must have a business license. A business license is a basic condition for individuals and organizations who wish to do business.

There are 2 main types of business licenses available today

• Household business license: a business license organized and managed by an individual, with a small scale within the framework of a family.
• Business license to establish a business: a business license registered by an individual or organization, with a larger scale than a household business.

Satisfy business conditions for conditional business lines

The third regulation on what is legal business is that enterprises must fully meet business conditions when doing business in conditional business lines. In a word, conditional business sectors are industries with high specialization or potential impact on public health and national security, so a number of new conditions need to be met. can do business.

What is the legal business for conditional businesses?

The conditional business lines, besides the business license, need additional conditions to be considered a lawful business. Additional conditions include:

• Certificate of Business Eligibility
• Practicing certificate
• Certificate of professional liability insurance

Pay tax according to the provisions of the law

The final rule on what is a legal business is when an enterprise or business household pays taxes in accordance with the law. This is a right and also a mandatory obligation of business enterprises. Businesses need to be honest in the process of declaring taxes and declaring business activities. In addition, enterprises must pay tax on time and at the right place, which is also in accordance with the law.

Above are the basic regulations on what is legal business, hopefully after the above information, you can understand what is legal business to apply to your business.

You can read the previous article here: Office Rental Price: Pay Into Account

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