11 things to do after getting your business license in 2020

1. Complete the initial tax registration.

One of the important tasks that newly established businesses need to pay attention to in 2020, and should not "take lightly," after obtaining their business registration certificate is to "register for tax for the first time."

Within 10 working days from the date stated on the Establishment and Operation License, taxpayers that are economic organizations or other organizations as stipulated in points b and c, Clause 1, Article 2 of Circular 95/2016/TT-BTC must prepare a complete tax registration dossier in accordance with regulations and submit it to the tax authority (the tax office where the company is located) to complete the tax registration procedures.

Tax return documents include:

• Official letter requesting registration of accounting and invoicing system;
• Decision to appoint a director
• Decision to appoint an accountant.
• Methods for depreciating fixed assets.
• Business license fee declaration form
• Electronic Information Exchange Registration Form

In particular, businesses need to pay attention to the Business License Fee Declaration Form. The deadline for submitting the form is the last day of the month of establishment or 30 days from the date of issuance of the Business Registration Certificate. 

If a business registers for tax later than the deadline, the tax authorities will record it as a late tax filing, impose penalties for late payment of taxes (business license tax), and may even have the business's tax identification number revoked.

Penalties for late submission of the Business License Fee Declaration Form

2. Pay the business license tax.

After submitting the initial tax registration application, businesses need to pay the business license fee. The amount of the business license fee is determined based on the company's registered charter capital.

The penalty for late payment of business license tax is calculated as follows:

Penalty amount = Amount of tax overdue x 0.03% x Number of days overdue

Note:  According to Decree 22/2020/ND-CP amending and supplementing a number of articles of Decree 139/2016/ND-CP dated October 4, 2016 of the Government regulating business license fees, newly established businesses in 2020 will not have to pay business license fees for their first year of operation.

See details: Newly established businesses in 2020 are exempt from business license fees for the first year.

3. Purchase an electronic digital signature.

Digital signatures (electronic signature devices) greatly assist businesses in electronic transactions throughout their business operations.

Newly established businesses need to purchase a digital signature to use for online tax filing, electronic customs declarations, electronic banking transactions, electronic securities transactions, the National Single Window portal, and other administrative agencies if applicable, without having to print declaration forms and affix the company's red seal. Additionally, the digital signature can also be used for procedures related to social insurance. 

See more: Uses of Digital Signatures

4. Opening a bank account

The next step after obtaining the Business License is Open at least one bank account to integrate electronic tax filing and facilitate transactions in 2020. Simultaneously, notifying authorities about the opening of the bank account helps them understand the information and more easily monitor the business's transactions.

According to Circular 78/2014/TT-BTC dated June 18, 2014, issued by the Ministry of Finance, input invoices with a value exceeding 20 million VND must be paid via bank transfer in order to be eligible for VAT deduction and recorded as deductible expenses when calculating corporate income tax.

Within 10 days of opening the account, the bank account number must be notified to the tax authorities. according to the form provided by the bank. (The form is available on the bank's website). If a business fails to complete or completes this procedure late, it will also be subject to corresponding penalties, similar to those for failing to declare tax information.

5. Register to use electronic invoices.

According to Clause 3, Article 26, businesses, economic organizations, other organizations, households, and individuals engaged in business activities are obligated to register to use electronic invoices instead of paper invoices (self-printed invoices, invoices printed on demand, or invoices purchased from the tax authority) from November 1, 2020.

Therefore, businesses need to register for electronic invoicing, then go through the procedures to apply for invoice issuance at the tax authority and submit a notification of invoice issuance.

6. Labor and Social Insurance

After completing all tax-related procedures, the next equally important step that businesses need to take when they obtain their business license is managing labor and wages for 2020. If businesses neglect or fail to complete these tasks as required from the outset, it can lead to problems, and in more serious cases, tax penalties.

Businesses need to do the following:

• Develop and register the Company's Salary and Bonus Regulations.
• Complete all three sets of Labor Records, including: Labor Records, Payroll Records, and Social Insurance Records.
• First-time registration for social insurance contributions: register in person to obtain a business code at the Social Insurance Agency.

7. Display the company name at the head office.

According to Clause 2, Article 38 of the 2014 Enterprise Law, the enterprise name must be displayed at the head office, branches, representative offices, and business locations of the enterprise. The enterprise name must be printed or written on transaction documents, records, and publications issued by the enterprise.

Therefore, according to the above regulations, businesses must display their company name at their head office and at any branches or representative offices (if applicable). Failure to do so will result in a fine of 10 million to 15 million VND and a mandatory display of the company name as required.

8. Sub-licenses

For business sectors that require business licenses, certificates of eligibility, etc., collectively known as sub-licenses, businesses must apply for and can only operate after receiving approval from the competent authority. Here are the tasks to be done after obtaining a business license.

9. Fulfill the capital contribution as committed.

Depending on the type of business, the capital contribution process is carried out as follows:

• For limited liability companies (LLCs): The owner or members must contribute the full amount of committed capital within 90 days from the date of issuance of the Business Registration Certificate.
• For joint-stock companies: Founding shareholders are obligated to pay the full amount of shares they committed to purchase within 90 days from the date the company is granted its Certificate of Business Registration.

In cases where the registered capital is not contributed in full and on time, the enterprise will be fined from 5 million VND to 20 million VND and required to register a reduction in charter capital for limited liability companies with two or more members (hereinafter referred to as LLCs with 2 or more members), or required to contribute the full registered capital for other types of enterprises.

10. Issuance of certificates of capital contribution/Membership register and Shareholder register

Limited liability companies with two or more members must issue a Certificate of Capital Contribution to each member at the time of capital contribution. Failure to issue this certificate will result in a fine of between 10 million and 15 million VND.

Businesses must establish and maintain a Register of Members (for limited liability companies with two or more members) or a Register of Shareholders (for joint-stock companies). Businesses that fail to do so will be fined from VND 10 million to VND 15 million and will be required to establish the Register of Members or Register of Shareholders as prescribed.

11. Trademark registration

In today's competitive economy, brand building is essential and crucial for businesses. One of the key elements that makes up a company's brand is its trademark and logo.

Therefore, trademark registration is absolutely essential. It is the basis for organizations and individuals using the trademark to establish ownership rights over their trademark, thereby establishing ownership rights over the business's brand. This will also be The final step after obtaining your 2020 Business License.

Based on the trademark registration certificate issued by the Intellectual Property Office, the owner can exploit the commercial benefits of their trademark, such as: using the trademark in connection with their products and services; transferring the right to use and own the trademark, etc. At the same time, it also serves as a basis for combating acts of infringement on the right to use the trademark.