After completing company registration, a business must carry out several important steps to begin legal operations in Vietnam. These procedures not only ensure regulatory compliance but also lay a solid foundation for financial transactions, accounting, and day-to-day business activities. In this article, we walk you through the essential post-establishment procedures so you can quickly launch operations and grow your business.
1. Declaring and Paying the Business License Tax
The first step every business must take after company formation is to declare and pay the business license tax. This is an annual tax that companies are required to pay to maintain legal operating status. It is essential to file the declaration on time and pay the full amount required by law in order to avoid administrative penalties. The amount payable depends on the company’s charter capital.
Business License Tax Rates
The business license tax rate is determined by the company’s charter capital. Under Vietnamese law, companies must pay this tax each year. Businesses with charter capital of less than VND 10 billion pay VND 2 million per year, while companies with charter capital exceeding VND 10 billion pay VND 3 million per year. Note that these rates may be adjusted by the tax authorities from time to time.
Declaration and Payment Timeline
According to Tax Department regulations, companies must declare the business license tax within 30 days of receiving the Enterprise Registration Certificate. Once the declaration is filed, the company must pay the tax to the tax authorities within the prescribed deadline. Meeting this deadline ensures full compliance with tax obligations and helps avoid administrative penalties.
Paying the business license tax on time not only helps the company avoid fines but also establishes a foundation for transparent, legally compliant operations.
Business License Tax Declaration Procedure
The company must complete the business license tax declaration using the form prescribed by the tax authorities. Required information includes the company’s charter capital, registered business lines, and other relevant details. After filling out the form, the business must submit it to the tax authority and pay the tax on time. If the company later changes key information such as charter capital or business lines, it must update this information with the tax authority to keep its declarations accurate.
Read more: A Complete and Accurate Guide to Declaring Business License Tax
2. Opening a Corporate Bank Account
Opening a corporate bank account is an essential step after company formation. The account serves as the main channel for legal financial transactions, including payments, receiving funds from customers, and paying taxes. A dedicated business account also helps maintain transparency, making it easier for customers, suppliers, and tax authorities to track and verify transactions.
Documents Required to Open a Bank Account
To open a corporate bank account, the business should prepare the following documents:
- Enterprise Registration Certificate: This document confirms that the company has been legally established.
- ID card or Citizen Identification Card (CCCD) of the legal representative: The legal representative must provide a copy of their ID or CCCD so the bank can verify their identity.
- Bank Account Opening Request Form: This form is provided by the bank for the company’s representative to complete and sign. Some banks may also require additional documents, such as the company charter or the establishment decision (if available).
The Account Opening Process
Opening a corporate bank account is relatively straightforward but should follow these steps:
- Prepare the documents: Ensure all required documents listed above are in order.
- Visit the bank: The company’s representative goes to the bank in person to register the account and complete the account opening form.
- Complete the procedures: The bank will ask the representative to sign the account service agreement and provide information on the company account, including the tax identification number, transaction limits, and available banking services.
- Receive the account details: After the procedures are complete, the company receives its bank account number and related information for conducting financial transactions.
Key Points to Note When Opening a Corporate Bank Account
When opening a corporate bank account, businesses should keep the following in mind:
- Choose the right bank: Select a bank that offers services well suited to businesses, such as electronic tax payment, international transfers, and corporate credit facilities.
- Notify the tax authority: After opening the account, the company must notify the tax authorities to enable electronic tax transactions. This ensures the company fulfills its tax obligations legally and on time.
- Review transaction fees: Carefully check the bank’s transaction fees, including transfer fees, withdrawal fees, and service charges, to avoid unnecessary costs.
3. Registering a Digital Signature
A digital signature is a key legal tool that enables companies to conduct electronic transactions, including procedures with tax authorities, online contract signing, and the legal processing of electronic documents. Registering a digital signature saves time and paperwork costs while ensuring security and transparency in online transactions.
What Is a Digital Signature?
A digital signature is a form of electronic signature used to authenticate the legality of online transactions. It replaces a handwritten signature in electronic transactions and carries the same legal weight as a signature by the company’s legal representative. A digital signature is essential when filing electronic tax returns, signing contracts online, or interacting with government agencies through online systems. With a digital signature, all of the company’s electronic documents are highly authentic and secure.
Digital Signature Registration Process
To register a digital signature, the company must contact a licensed digital signature service provider authorized by the General Department of Taxation. The registration process consists of the following basic steps:
- Choose a digital signature service provider: Businesses can select an authorized provider such as VNPT, FPT, or Bkav. These providers are licensed by the tax authorities and meet required security standards.
- Submit the required documents: The company must prepare documents including the Enterprise Registration Certificate, the legal representative’s ID, and the Digital Signature Registration Request Form.
- Register and receive the digital signature: Once registration is complete, the company receives a digital signature device (USB token) and the electronic signing software. Be sure to obtain the proper documentation and software from the service provider.
Trusted Digital Signature Providers
To ensure the legality and security of a digital signature, companies should choose reputable providers authorized by the General Department of Taxation. Some of the most trusted digital signature providers in Vietnam include VNPT, FPT, Bkav, and Misa. Each offers different pricing and service options to meet various business needs. Choose a provider with strong customer support, robust security, and an easy-to-use interface for dealings with the tax authorities.
Benefits of Using a Digital Signature
Using a digital signature offers many benefits to companies, particularly when completing online administrative procedures and electronic transactions. Key benefits include:
- Time savings: A digital signature lets companies complete administrative procedures quickly, without submitting physical paperwork.
- High security: Digital signatures protect electronic transactions from fraud and ensure the authenticity of contracts and documents.
- Easy electronic tax filing: Companies can complete tax filing procedures through the electronic tax system without visiting the tax office in person.
4. Issuing Electronic Invoices
Electronic invoices are an important tool for managing sales and service transactions in a legal and transparent way. After company formation, issuing electronic invoices helps businesses cut costs, minimize errors, and manage invoices more easily. Electronic invoices have the same legal value as paper invoices and have been mandatory for all businesses since November 1, 2020, in line with the regulations of the General Department of Taxation.
Regulations on Electronic Invoices
An electronic invoice is an invoice issued and stored electronically, replacing the traditional paper invoice. Electronic invoices carry the same legal value as paper invoices, provided they fully comply with the applicable regulations. Companies must use electronic invoicing software and complete the registration procedures with the tax authorities. This ensures legal compliance and helps the company avoid tax-related legal risks.
In addition, using electronic invoices helps reduce tax fraud and makes electronic tax filing more efficient. Invoice data is stored online and can be retrieved easily whenever needed.
Steps to Issue Electronic Invoices
To begin issuing electronic invoices, the company should follow these steps:
- Choose an electronic invoice service provider: Select a reputable electronic invoicing software provider authorized by the General Department of Taxation.
- Register electronic invoice issuance with the tax authorities: Submit an electronic invoice issuance notification to the tax authorities, specifying the type of invoice, the invoice template, and the software used.
- Install the electronic invoicing software: After registration, install the electronic invoicing software provided by the service provider.
- Issue invoices: Once these procedures are complete, the company can begin issuing electronic invoices for sales and service transactions. Invoices are sent directly to customers via email or through electronic transaction software.
Benefits of Electronic Invoices
Using electronic invoices offers many benefits to a company:
- Cost savings: Without the need to print and store paper invoices, the company reduces costs related to paper, ink, storage, and invoice delivery.
- Easy management: Electronic invoices make it simple to track and store transaction information in a systematic way. Data can be quickly retrieved and searched within the electronic system.
- Security and fraud prevention: Electronic invoices help minimize tax fraud and invoice falsification. Data is securely stored and can be verified at any time.
- Greater transparency: Electronic invoices enhance transparency in business transactions and help the company complete tax reports accurately and on time.
After company formation, completing administrative procedures such as tax declaration, opening a corporate bank account, registering a digital signature, and issuing electronic invoices is crucial for the company to operate legally and efficiently. These procedures not only ensure legal compliance but also support transparent, effective financial and tax management. Completing them on time helps the business avoid legal risks and sets the foundation for sustainable growth.
If you need professional support with post-establishment procedures or are facing challenges with tax registration, opening a bank account, registering a digital signature, or issuing electronic invoices, our accounting services are ready to help. With an experienced team of experts, we are committed to delivering quality services that save you time, prevent costly mistakes, and ensure effective legal compliance. Contact us today for tailored advice and reliable support.
Read more: Newly Established Company Services
For any inquiries, contact Wacontre Accounting Services via Hotline: (028) 3820 1213 or email [email protected] for prompt assistance. With a team of experienced professionals, Wacontre is committed to providing dedicated and efficient service. (For Japanese clients, please contact Hotline: (050) 5534 5505).
