Newly Established Companys make and not make do is a concern many young individuals, who are newly establishing companies, are interested in today to avoid future issues. So, let’s explore what a newly registered company should do and should not do according to business law regulations.
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What newly established companies should do
In order for a company to be recognized as established and to provide credible information to customers when researching. After registering the company, your business needs to perform the following:
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Register and announce the company’s establishment
Announcing the company’s establishment helps customers know accurate information about the entity. This is also one of the regulations of the 2014 Business Law stipulated at Article 31. After obtaining the business registration certificate, the enterprise must publicly disclose company information on the national business registration information portal.
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Hang signboards
To begin product and service advertising activities, businesses need to make signboards and hang them at the company’s main office. These signboards do not have specific size regulations but must include the following information: company name, address, and enterprise code.
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Declare and pay business license tax
Declaring and paying the business license tax is a mandatory requirement for businesses to do within 30 days from the date of establishment. The sample declaration form for business license fee is regulated under Decree 139/2016/NĐ-CP of the Ministry of Finance.
And businesses established within the first 6 months of the year must pay the full year’s business license tax. Those established within the last 6 months pay half of the tax for the year.
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Declare VAT
When declaring VAT, businesses can choose between two methods based on their conditions. This includes declaring withholding VAT and direct calculation VAT according to the value-added tax calculation method.
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Electronic invoices
Currently, from 2019 onwards, new companies are required to use electronic invoices. You can contact providers such as Viettel, Vina, VNPT, etc., for electronic invoice services.
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Declare corporate income tax
Corporate income tax is calculated quarterly or annually. The deadline for provisional quarterly tax declarations is no later than the 30th day of the subsequent quarter. Final tax declarations are due within 90 days from the end of the calendar or fiscal year.
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Declare personal income tax
When a company makes payments subject to personal income tax, whether or not tax deduction issues arise, it must pay the tax on behalf of individuals. If the organization makes a payment to individuals within a year, it must declare personal income tax finalization.
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Open bank account
New companies should open a bank account for transactions with customers. For invoices valued at 20 million VND or more, payment must be made via bank transfer. This allows the company to deduct VAT and corporate income tax.
For new companies using labor and signing contracts with employees with a term of 1 month or more, those employees are subject to mandatory social insurance participation.
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Report fixed asset depreciation
According to Circular 45/2013/TT-BTC of the Ministry of Finance dated April 25, 2014, it guides enterprises in managing, using, and depreciating fixed assets.
What new companies should avoid doing
Besides the mandatory tasks when establishing a company, to avoid issues and complications related to the Business Law, new companies should not immediately start operations but follow the compulsory declaration steps regulated by the Business Law.
The shared information aims to inform what must be done when establishing a new company, help prevent damage to reputation, and ensure smooth operation. For more insights on what to avoid during company setup, contact us for consultation and support.
