Where can enterprises notify changes to their business lines in Vietnam?

1. Where can enterprises notify changes to their business lines in Vietnam?

In Clause 1, Article 31 of the Enterprise Law 2020, the enterprise shall notify the business registration authority of any change to:

a) The enterprise’s business lines;

b) The founding shareholders and foreign shareholders (for joint stock companies, except listed companies);

c) Other content of the enterprise registration application.

According to Clause 2, Article 8 of the Enterprise Law 2020, obligations of enterprises are as follows:

2. Apply for enterprise registration; register changes to enterprise registration information; publish information about the establishment and operation of the enterprise; submit reports and fulfill other obligations prescribed by this Law.

Thus, when you change the business line, you must notify the business registration agency. If you change your business line without reporting it, you will be administratively fined in Vietnam.

2. How much is fine for failure to notify changes in business lines in Vietnam?

Pursuant to Article 49 of Decree 122/2021/ND-CP stipulating violations against regulations on notifying changes in enterprise registration information as follows:

1. A warning shall be imposed for notifying changes in the enterprise registration information 01 - 10 days behind schedule.

2. A fine ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for notifying changes in the enterprise registration information 11 - 30 days behind schedule.

3. A fine ranging from VND 5,000,000 to VND 10.000.000 shall be imposed for notifying changes in the enterprise registration information 31 - 90 days behind schedule.

4. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for notifying changes in the enterprise registration information 91 days or longer behind schedule.

5. A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for failure to notify changes in the enterprise registration information.

6. Remedial measures:

The violator is compelled to:

a) send a notification to the enterprise registration certificate if any of the violations specified in Clauses 1 to 4 of this Article is committed in cases where the changes are yet to be notified as prescribed;

b) send a notification to the enterprise registration if the violation specified in Clause 5 of this Article is committed.

According to Clause 2, Article 4 of Decree 122/2021/ND-CP stipulating fine levels:

2. The fines for administrative violations specified in this Decree are imposed upon organizations (except for the fines for violations specified in Point c Clause 2 Article 28; Points a and b Clause 2 Article 38; Article 62 and Article 63 of this Decree, which are imposed upon individuals). For the same violation, the fine incurred by an individual is 1/2 (half) that incurred by an organization.

Therefore, enterprises that fail to notify the business registration agency when changing their business lines will be fined from VND 20,000,000 to VND 30,000,000. In addition, a notification must be sent to the enterprise registration when changing business lines in Vietnam.

Best Regards!