5 ESSENTIAL ACTIONS TO TAKE IMMEDIATELY AFTER ESTABLISHING YOUR STARTUP

Establishing a startup is merely the initial step in your entrepreneurial journey. To ensure legal compliance and seamless operations, it's imperative to promptly address the following five tasks after obtaining your Business Registration Certificate (BRC).

1. Open a Business Bank Account for your startup

Vietnamese law mandates that enterprises conduct transactions exceeding 20 million VND through a corporate bank account. Utilizing personal accounts for business dealings can lead to complications during tax settlements and audits.​

Key Considerations:

• The account holder's name must match the company's registered name.​

• Present the BRC and the legal representative's identification (ID card or passport) when opening the account.​

• Opt for banks offering robust e-banking services to facilitate remote transactions.​

• Recommended timeframe: Within one week of receiving the BRC

2. Register for a Digital Signature Certificate

A digital signature is indispensable for executing online administrative procedures, including tax declarations, tax payments, and electronic invoicing.

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Key Considerations:

• Select a reputable provider recognized by the General Department of Taxation, such as Viettel-CA, BKAV-CA, or FPT-CA.​

• Service packages typically range from one to three years; choose according to your startup's needs.​

• Digital signatures come in two forms: USB Token and Cloud-based. Cloud-based solutions offer greater convenience by eliminating the need for physical devices.​

• It's advisable to register for a digital signature concurrently with opening your bank account to streamline processes.

  
  

3. Submit Initial Tax Declarations

This procedure officially records your startup's operations with the tax authorities, leading to the issuance of a tax identification number. Failure to comply can result in fines ranging from 2 to 5 million VND and potential suspension of business activities.​

Key Considerations:

• Deadline: Within ten days from the BRC issuance date.​

• Required documents include tax declaration forms, office lease agreements (if applicable), and your digital signature account.​

• Submissions can be made online via the local tax department's electronic portal.​

• Neglecting this step can prevent invoice issuance, hinder business operations, and lead to tax code suspension.​

  
  

Documentation Details:

• Declaration form for accounting methods and invoice types.​

• Appointment decisions for the director and chief accountant.​

• Methodology for fixed asset depreciation.​

• License tax declaration (can be submitted online).​

• Registration form for electronic information exchange.​

  
  

Submit all documents directly to the Tax Department overseeing your startup's registered address. Certain procedures can be completed online if you possess a digital signature and an electronic transaction account with the tax authorities.​

4. Register for Electronic Invoice Issuance

Current regulations require all businesses involved in the sale of goods or services to utilize valid electronic invoices. This ensures legitimate revenue recognition, facilitates dealings with partners, and helps avoid penalties during tax inspections.​

Key Considerations:

• Prepare invoice templates, company information, and your digital signature.​

• Submit the registration form via the electronic tax system (Etax).​

• Consider using intermediary platforms like MISA, EasyInvoice, or Viettel Invoice for streamlined processes.​

• Early registration prevents disruptions in client transactions.

5. Register for Social Insurance (SI) if Employing Staff

If your startup employs one or more individuals under contracts exceeding one month, participation in mandatory social insurance is required. Non-compliance can lead to administrative penalties and affect employee benefits.​

Key Considerations:

• Prepare labor contracts and employees' identification documents.​

• Register at the district-level SI agency where your startup is headquartered or submit online.​

• Current SI contribution rates: Employers contribute 17.5%, and employees contribute 8% of the salary.​

• Failure to register can result in fines and deprive employees of insurance benefits.

Establishing a startup is just the beginning. To operate legally and mitigate potential risks, promptly completing these five critical procedures after obtaining your BRC is essential.​

If you're in the process of launching your startup or have recently done so, ensure these steps are on your checklist to avoid overlooking vital procedures. Timely and accurate completion will facilitate smooth and professional operations from the outset.​

For comprehensive support with post-establishment procedures, feel free to contact us for a free consultation.

Source: luatvietnam.vn/