10 new points of the Circular No. 02/2023 on business registration

From July 2023, the effectiveness of Circular No. 02/2023/TT-BKHDT causes many new changes in business registration, especially for business households. LuatVietnam would like to collect 10 new points in Circular 02/2023 on business registration.

1. The identification number is the tax identification number

One of the new points of Circular No. 02/2023/TT-BKHDT is the identification number and also serves as a tax identification number of a business household.

In accordance with Clause 1, Article 5b, Circular No. 01/2021/TT-BKHDT which is supplemented at the Point 2, Article 1, Circular No. 02/2023 as follows:

Identification number of a business household means a sequence of numbers automatically generated by the Tax Registration Application System and transmitted to the information system on business household registration for a grant to the business household upon registration. An identification number of a business household is recorded on a business household registration certificate and also serves as a tax identification number of a business household.

Accordingly, the identification numbers of business households also serves as tax identification numbers of business households from July 01, 2023, identification numbers of business households are different from tax identification numbers of business households.

2. Form of recording lines and industries of business households

Circular No. 02/2023/TT-BKHDT supplements the guidance in the lines and industries of business households which are recorded and compared with regulations prescribes in Clauses 2, 3, 4, 5, 6 and 7, Article 7, Decree No. 01/2021/ND-CP

- An enterprise founder or enterprise shall select a level-4 industrial sector in the Vietnam Standard Industrial Classification (in accordance with Decision No. 27/2018/QD-TTg) to record the main business lines and industries. 

- Business lines subject to conditional business investment regulated in other legal documents shall be written according to the business lines referred to in such legal documents.

- Business lines not included in the Vietnam Standard Industrial Classification system but regulated in other legal documents shall be written according to the business lines referred to in such legal documents.

- For business lines neither included in the Vietnam Standard Industrial Classification system nor regulated in other legal documents,

Business registration agencies shall consider writing them in the national business registration database provided such business lines are not banned from business investment, and concurrently notify to the Ministry of Planning and Investment (the General Statistics Office) for addition as new business lines.

The district-level business registration agency shall guide, compare and write the main business lines of the business household in the information system on business household registration.

3. Dossier, the procedure for business household registration via an electronic information network

3.1. Business registration dossiers via the electronic information network

In accordance with Article 5g, Circular No. 01/2021/TT-BKHDT which is amended in Circular No.02/2023/TT-BKHDT, prescribes that:

- A dossier for business household registration via electronic information network comprises the documents displayed in the form of e-document:

• The proposal for business household registration;
• Legal paper of the individual, for the owner of the business household or household member making business household registration in case of business household registration by household members
• A copy of the minutes of the household members’ meeting on the establishment of the business household in case of business household registration by household members;
• A copy of the power of attorney stating that the household members authorize one of them to act as the owner of the business household in case of business household registration by household members.

- An e-document is a document in the form of a data message which is created or digitalized from a paper document and expresses accurately and wholly the contents of the paper document. E-documents may be in the format of “.doc” or “.docx” or “.pdf”.

- Dossiers for business household registration via electronic information network shall be accepted when the following requirements are fully met:

• The dossier comprises sufficient papers which are fully filled according to regulations applicable to paper dossiers and have been converted into e-documents.
• E-documents must be named consistently with the names of documents in paper dossiers. 
• Business household owners, household members or other individuals who sign business household registration dossiers may use their digital signatures to sign e-documents directly or sign paper documents and then scan the paper documents in the format of “.doc” or “.docx” or “.pdf”.
• Business household registration information declared on the information system on business household registration must be sufficient and accurate as those declared in the paper dossier, covering information on the telephone number and email of the dossier submitter;
• Dossiers for business household registration via electronic information network are certified by the digital signature/authorized person in business registration dossiers (issued with the papers, and documents in accordance with Clause 4, Article 84, Decree No. 01/2021/ND-CP).
• The time limit for a business household to modify or supplement its dossier for business household registration via the electronic information network is 60 days after the district-level business registration agency issues a request for dossier modification or supplementation.  Past this time limit, if the district-level business registration agency does not receive the modified or supplemented dossier from the business household.

3.2. Procedure for business registration dossiers via an electronic information network

From July 01, 2023, the Procedure for business registration dossiers via electronic information network shall be supplemented at Article 5e, Circular No. 01/2021/TT-BKHDT in Circular 02/2023 as follows:

- Business household registration via electronic information network means that a business household founder or business household carries out the procedures for business household registration in accordance with Decree No. 01/2021/ND-CP on the information system on business household registration under the National Information System on Business Registration via the National Business Registration Portal.

- The applicant for household business registration shall declare information, upload e-documents, and use a digital signature to authenticate the business household registration dossier according to the process on the information system on business household registration.

- The district-level business registration agency shall return the receipt of the dossier and the results of settling the business household registration procedure to the applicant who submitted the dossier via the electronic information network according to the process on the information system on business household registration.

4. New forms on business registration dossiers via electronic information network from July 01, 2023

Circular No. 02/2023/TT-BKHDT issues many forms in business registration to replace the forms prescribed in Circular No. 01/2021/TT-BKHDT

Accordingly, from July 01, 2023, the forms prescribed in Appendices III-1 thru III-7 and VI-1 thru VI-16 attached to this Circular replace those prescribed in Appendices III-1 thru III-6 and VI-1 thru VI-14 attached to Circular No. 01/2021/TT-BKHDT.

5. Business household registration certificates according to standby procedures

Circular 02 supplements the business household registration according to standby procedures. In particulars:

Issuance of the business household registration certificates according to standby procedures means the issuance of business household registration certificates not via the information system on business household registration in the cases as follows:

• The information system of business household registration is undergoing construction or upgrading;
• The information system of business household registration encounters a technical incident;
• Other force majeure cases.

Based on the expected period for remediation of incidents, or building, and upgrading of the national information system on business household registration, except in force majeure events, the Ministry of Planning and Investment shall send advance notice of the expected period to district-level business registration agencies for the latter to issue household registration certificates according to standby procedures.

Coordination in settlement of procedures for issuance of household registration certificates according to standby procedures between business registration agencies and tax offices must comply with the process of transfer of dossiers in paper form.

Within 15 working days after receiving the Ministry of Planning and Investment's notice of completing the development, upgrading or remediation of incidents of the information system on business household registration, the district-level business registration agency shall update data and information on the registered business household to the information system on business household registration.

6. Notice of business locations of business households

Clause 1, Article 5d, Circular No. 01/2021/TT-BKHDT is supplemented by Circular No. 02/2023/TT-BKHDT prescribes that in a household business conducts business activities at a location other than its registered office, the household business shall notify the district-level business registration agency where its registered office is located of the business location.
 

The district-level business registration agency shall receive the notice of the business location from the business household and issue a notification of tax identification number and the tax agency directly managing the business location to the household business.

7. Method of searching identification numbers of business households from July 01, 2023

In accordance with the Circular 02, organizations and individuals may search for business household registration information free of charge at www.dangkykinhdoanh.gov.vn., including business household name, registration number of business household, identification number of business household, registered office address, business lines, name of the household business owner. 

Accordingly, the district-level business registration agency shall convert, update and add business household registration information stored locally into the information system on business household registration.

8. Modes of payment of business household registration fees

In particular, the applicant for business household registration shall pay the business household registration fee at the time of submitting the business household registration dossier.

Payment of business household registration fees includes 03 methods as follows:

• Can be paid directly at the business household registration office at the district level; or
• Transferred to the account of the district-level business registration agency
• Or using the online payment service of the National Public Service Portal.

Note: the business registration fee shall not be refunded to the business household if it is not granted a business household registration certificate.

9. Without being required to make re-registration

Clause 2, Article 3, Circular No. 02/2023/TT-BTC prescribes as follows:

Article 3. Implementation provisions

[...]

2. Business households that have been granted business household registration certificates before the effective date of this Circular may continue to operate without being required to make re-registration under this Circular.

Therefore, business households are issued with the business household registration certificates before July 01, 2023, and can operate without being required to make re-registration.

10. Supplement a number of definitions on business registration

Accordingly, Circular No. 02/2023/TT-BKHDT supplements a number of definitions as follows:

- Registration of business households means the registration of business and tax registration information with the district-level business registration agency where the business household is headquartered.

- Certificate of business household registration refers to a paper or e-document that the district-level business registration agency provides for the business household, in which records information on business and tax registration of the business household.

- The information system on business household registration means a component of the National Information System on Business Registration, which is developed and operated under the coordination of the Ministry of Planning and Investment, for sending, receiving, storing, displaying, or performing other tasks related to business household data to serve the business household registration.

- Identification number of a business household means a sequence of numbers automatically generated by the Tax Registration Application System and transmitted to the information system on business household registration for a grant to the business household upon registration.

- Issuance of the business household registration certificates according to standby procedures means the issuance of business household registration certificates not via the information system on business household registration.

- Business household registration via electronic information network means that a business household founder or business household carries out the procedures for business household registration on the information system on business household registration under the National Information System on Business Registration via the National Business Registration Portal.

Here are the new points of Circular 02/2023 on business household registration.