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Decree rolls out online business registration
The Government issued Decree No.43/2010/ND-CP on enterprise registration on April 15, replacing Decree No.88/2006/ND-CP of August 2006. The new regulation reflects more investor-friendly standards and a business registration process that uses less paper and is more transparent and accessible.
Decree No.43 streamlines enterprise registration procedures, supplements the rules for naming companies, and lays the foundation for a business registration database that would be accessible and consistent nationwide.
Decree No.43 also halves the turnaround time from receipt of application to issuance of a business registration certificate to five business days. A single code will now be issued for both purposes – business registration and tax code registration.
Decree No.43 also allows the letters F, J, Z, and W to appear in company names, letters not found in the Vietnamese alphabet. These letters were not permitted under Decree No 88. With this change, foreign investors will no longer be required to make a preferred name conform to the Vietnamese alphabet.
The new decree also offers a glimpse of a more efficient and accessible business registration process using technology. It contains provisions for a national enterprise registration information system, including a national enterprise registration information portal and a national database on enterprise registration that would enable investors to conduct business registration online. Enterprise registration information would then also be available for a fee from the national database on enterprise registration (A helpful feature for due diligence).
With the birth of the national enterprise registration information system, investors will also be required to search nationwide to avoid repetitive enterprise names, rather than the previous provincial-level search requirement. As of January 1, 2011, any proposed name identical to, or similar enough to cause confusion with, an already registered enterprise name anywhere in Viet Nam will be rejected. To avoid disputes over enterprise names, investors need to have their proposed name investigated carefully before applying for registration.
Bui Ngoc Hong - Truong Hoai Nam - Indochine Counsel
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