Essential Steps for Newly Established Companies

What do newly established companies need to do? is a concern for many clients who just received their business registration certificate. To ensure smooth operation and compliance with business law conditions and requirements, newly established companies should do the following.

Register the publication of company establishment

The first answer about what a new company needs to do is to register the public announcement of company formation. This is a mandatory task to help the company enter the market and reach customers, as stipulated in Article 31 of Law on Enterprises 2014. After receiving the business registration certificate, the company must publicly notify this on the National Information Portal within 30 days.

Hang up the company’s signboard

After publishing the company information on the National Information Portal, the next step is to create a signboard to hang at the company’s head office. Hanging a new signboard is an activity that new companies must perform to start operations.

However, according to the Enterprise Law regulations, the size and hanging position of the signboard are not strictly mandated and can be adjusted based on preference. The signboard should include details such as: company name, business registration number, address.

According to Decree 155/2013/ND-CP, companies that do not hang a signboard may face a fine from 10,000,000 VND to 15,000,000 VND. Furthermore, Circular 39/2014/TT-BTC effective from June 1, 2014, stipulates that a company’s signboard is a necessary condition for applying for electronic invoice services. After having the signboard, individuals or organizations must declare and pay the business license tax.

Purchase digital signature and conduct initial tax procedures

According to regulations added in 2012 to the Law on Enterprises, companies that have registered and have conditions in Information Technology must proceed with electronic tax submissions and online tax declarations using a digital signature.

For companies employing the deduction method for taxes, they will print invoices according to the invoice issuance notice to the tax authorities. Companies using the direct revenue tax method must register to purchase invoices at the tax department.

What does a newly formed company need to do when declaring and paying business license tax

Once the company has registered and become operational, it must comply with declaring and paying the business license tax. The deadline for declaration and payment is within 30 days from the company’s establishment date. The tax declaration for the business license fee includes the prescribed form according to Decree 139/2016/NĐ-CP of the Ministry of Finance.

What does a newly established company need to do when declaring VAT

According to regulations, there are currently two methods for calculating and declaring VAT: deduction method and direct method.

The choice of method depends on each business. The business will apply the method they are eligible for to declare VAT correctly. The deadline for VAT declaration and payment is no later than 30 days after the end of each quarter.

What does a newly established company need to do regarding electronic invoices

For newly established companies in 2019, using electronic invoices is mandatory. For other established businesses, it is not compulsory. To use electronic invoices, contact a service provider to get the necessary information and support for electronic invoice services.

Open a bank account for the company

Another essential task for newly started companies is opening a corporate bank account. This facilitates transactions, especially for invoices of 20 million VND or more, and allows VAT deduction through bank transfers.

Hopefully, these insights assist you in preparing the necessary steps when a company is newly established. These guidelines hope to help you smoothly transition into operational phase and ensure compliance in the initial stages.