Businesses’ concerns over a lack of flexibility when it comes to registering their business activities have been eased.
Unified application of business line code registration helps businesses take initiative in operations
According to Ministry of Planning and Investment’s (MPI) Business Registration Department executives, businesses have two options when it comes to registering. They can write down in their enterprise registration certificates that they operate in areas specified in business line level 4 and have the right to trade in any professions specified in that category.
Alternately, they can provide specific business line codes and detail their proposed trading areas in level 4.
This is part of the MPI’s Dispatch 8311/BKH-QLDKKD to help ensure businesses properly abide by state regulations on business line code registration while still respecting enterprises’ habits.
The dispatch, however, regulates that businesses detailing their proposed trading areas can only trade in these specified areas and are obliged to alter registration certificates when they trade in any other areas not earlier specified but still belonging to business line level 4.
Business line classification based on economic sectors is in line with international practices, according to the Business Registration Department.
The department also said making business line brief in the enterprise registration certificates would give companies more flexibility in their operations.
The national business registration information system website and lawyer offices have received many queries on business line code issues. For example, one firm asked why their interpreting service was classified as ‘other professional, scientific and technological activities yet to be mentioned’ under code 7490.
The firm argued that the presence of this code only in the enterprise registration certificate might cause problems with market watchdogs or tax bodies as there was no line referring to interpreting services.
Scores of firms have reportedly found themselves in a similar position.
In fact, excluding some new areas yet to be named in Vietnam’s current economic sector system and which would need further guidance, many businesses want to see enterprise registration certificates setting out their specific trading areas and even their products.
When questioned why they wanted to detail their trading areas in the enterprise registration certificates, companies responded they did so to prevent issues with tax, customs or market watchdog bodies.
Unified application of business line code registration in business line category 4 is then important when it comes to helping businesses take initiative in operations and underpins the building of a comprehensive business information system. However, this unification requires a great deal of effort, not only the business community but also from relevant state management agencies.