A business license is an essential legal document to legalize the production and business process recognized by the state. In a constantly changing economy, updating new information related to business licenses is extremely necessary. In the article below, Mizuland – Da Nang office rental consulting unit, will provide you with detailed information about the registration process. Also, answer frequently asked questions to help you understand legal requirements. This not only helps businesses comply with regulations but also creates a solid foundation for long-term development.
Terminology of business license
Business licenses include licenses, certificates of eligibility, professional liability insurance certificates, confirmation documents, and other prescribed forms of documents. Conditions that individuals and organizations must meet to carry out business investment activities […] (Decree 98/2020/ND-CP). To put it more simply, a business license is a condition for being allowed to do business legally.
In the procedure for establishing and certifying an enterprise’s business, there are 2 important documents that the enterprise must register:
- Business registration certificate: A document proving that a business was established. Paper is issued to companies by the registration authority in the form of electronic documents or hard copies.
- Business license: This license is issued to businesses after being granted a business registration certificate. This certificate is issued to businesses doing business in conditional industries according to state regulations. According to the Enterprise Law 2020, enterprises fulfill their obligations to meet business conditions for conditional investment industries and occupations and ensure to maintain those business conditions throughout the production and operation process.
Thus, the business registration certificate is not considered a license for business activities. A business license is considered the most valid legal document. Fully meet business registration conditions according to state regulations.
Characteristics of business license
Some important features of a business license to note:
- Business licenses are only issued after obtaining a business registration certificate.
- Business licenses are only issued by agencies competent to carry out business activities.
- Business licenses are used in conditional business areas. The list of conditional business fields is specified in Appendix IV of the Investment Law 2020.
- Business licenses are general and determine legality; Allows businesses to conduct business.
- Licenses are regulated by several specialized documents and state laws
Division of business registration and business licenses
Some many businesses and individuals do not distinguish between the two types of licenses. These are the business registration and business license. Here are some factors to identify the nature of these two types of documents:
Business registration certificate Business License
Scope Business registration is a mandatory requirement for businesses to establish and develop their business.
If the business operates in an unconditional industry, it only needs a business registration certificate.
-> Every business must have a business registration certificate.
If an enterprise operates in a conditional field, it must have two pieces of paper: registration and license.
-> Need a business license when doing business in conditional areas.
Licensing facility Business Registration Office under Planning and Investment where the enterprise’s headquarters is located. Depending on the field, the licensing authority will be different.
License documents Registration documents according to available form;
Legally registered business lines and occupations, not banned from investment;
The business name must be set correctly according to the requirements of the Enterprise Law 2020;
Complete all business registration fees and charges according to regulations on time.
Application for a conditional business license;
Copy of business registration certificate;
Copy authentication tool;
Notarized copy of ID card, ID, or passport of the legal representative, founding shareholder, or capital contributing member;
Document confirming the professional qualifications and experience of the direct operator in the field of operation
Related documents and documents proving business conditions for each specific field.
Duration Up to now, the law has no regulations on the expiration date for business registration certificates. Most business licenses have an expiration date. The term instrument will be the basis for the profession as well as the type of business license.
Note:
When the license expires, the business owner must go through renewal procedures. Or a new one to be able to continue production and business activities.
Procedures for registering a conditional business license
Step 1: Prepare documents:
- Application for a conditional business license;
- Notarized copy of business registration certificate;
- Copy of the company charter as prescribed;
- A valid copy of the ID card/ID/passport of the head of the business/founding shareholder/capital contributing member;
- Documents proving the professional qualifications and experience of the person directly operating and leading the field of operation;
- Related documents, documents, and images proving business eligibility for each specific field.
Note: For different industries and occupations, there will be different requirements for accompanying information and related documents.
Step 2: The competent authority will receive and process the business registration license application
Because conditional business lines belong to many different fields. Therefore, the agencies that review and register business licenses are also different.
For example: Apply for a fire protection license:
The agency receiving the application may be the Fire Prevention and Fighting Police Department under the Ministry of Public Security or the Fire Prevention and Fighting Police Department.
Application review time ranges from 5-15 days from the date of receipt.
Note: When reviewing a business license, the competent authority will check directly at the business establishment.
For example: Apply for a food hygiene and safety license
Owners of food processing establishments and food service businesses must meet the following conditions:
- Cooking and processing utensils must ensure hygiene and safety.
- Have registered food business in the business registration certificate;
- Separate utensils and containers for cooked and raw foods must be fully prepared.
- People involved in processing and trading need to comply with regulations on health, knowledge and practice;
- Water used for business and processing activities meets hygiene and safety standards.
If regulations are met, the competent authority will grant an operating license.
Step 3: Return results.
If you meet the prescribed standards and complete the dossier, the agency will approve the household or business business license. In case of insufficient documents, they must be urgently supplemented in the dossier. If you do not meet the regulations, your license will be denied. You can look up business licenses on the website of the General Department of Taxation.
Answers to frequently asked questions about business licenses
In addition, the business license process still has many problems. Next are some frequently asked questions when applying for a license?
Only a business registration certificate is needed, without a license, can a business be licensed to do business?
โ If an enterprise operates in an area without conditions, it only needs a business registration certificate to be allowed to do business.
โ If the enterprise operates in a conditional industry or profession according to the 2020 Investment Code, the enterprise must apply for a business license after obtaining a business registration certificate. When obtaining 2 types of licenses, businesses are allowed to do business.
What are the conditional business investment industries and occupations?
Conditional business investment industries and occupations are industries and occupations in which the implementation of business investment activities must meet necessary conditions. For reasons of social safety, public health, national defense, national security, social order and ethics.
How much does a license cost?
Licensing costs depend on the type of business registration. For businesses such as private enterprises, joint stock companies, etc., the licensing fee will be higher than the cost of a household business license.
What are the conditions for a license?
Regulations on licensing conditions for each profession will have specific and different requirements. Then the conditions for business licensing can be: facilities, and practice certificates. In addition, qualifications, charter capital, deposit capital or legal representative, …
Where to register for a license?
The agency receiving applications and issuing licenses will be different depending on the industry in which you register your business.
For example:
- Advertising license; Place issued to the Department of Culture, Information and Communications.
- Certificate of eligibility for the clinic – Issued by the Department of Health of the local Province/City.
How long is the registration period?
The expiry dates of most business licenses and certificates of business eligibility are often specifically regulated. And it will be based on the industry as well as the type of business license.
For example:
- The validity period of the fire protection license is 5 years from the date of issue.
- The food safety and hygiene license is valid for 3 years from the time it is issued.
When the license expires, the individual/organization must proceed with renewal procedures. Or apply for a new license to continue business operations.
Is it mandatory to apply for a business registration license?
If the enterprise operates in industries and occupations that do not require special conditions. Just having a business registration certificate is enough to legally operate. However, for businesses doing business in fields that require certain conditions. In addition to the business registration certificate, a business license is also required to be allowed to operate.
Above are Mizuland’s shares about business license registration. Hopefully with this useful information, you will understand the necessary procedures for business licenses. In addition, Mizuland also advises on other legal issues along with reputable Da Nang office rental services. Follow us to receive the latest necessary information!
