Firms confused about new business regulations

The number of people and firms seeking advice about business startups at the HCMC Department of Planning and Investment has surged since the amended enterprise and investment laws took effect on July 1. 

As observed by the Daily, a large number of people have come to the department’s business registration center in recent days asking for clarifications about the new regulations related to business codes, seals and other issues.

Many people complained that the business establishment process is not as quick and simple as stated by relevant agencies and as regulated in the two new laws.

Article 29 of the 2014 Enterprise Law does not require firms to show business areas for registration certification but they are told to write down all business areas they plan to operate in together with business codes.

Le Duc Hien, a business owner, bemoaned that he had to spend much time searching for the right code of e-commerce, the area his company plans to expand to, and found code 6312 (establishment of general electronics center) suitable. Nevertheless, his registration application was rejected as the business registration center said the right code was 8299 (other business areas which are not categorized).

Thu Trang, a woman experienced in business establishment, said she still had trouble selecting suitable codes as it is not easy to understand and identify the right codes for planned business areas.

According to Nguyen Ngoc Tuan, director of Viet A Co., the problem is that many people find it hard to distinguish business codes and that it is time consuming to find the right code among the thousands.

Tuan proposed enterprises ask for assistance at business registration centers.

Many firms suggested the task of writing down business codes should be performed by business registration centers to save time for investors.

Unclear regulations

Many enterprises said though the revised Enterprise Law was claimed to contain clear regulations, they still find many of them confusing, especially the new regulation on corporate seals.

Enterprises do not know who issues seals for them or whether they need seals or not.

The HCMC Department of Planning and Investment said some enterprises misunderstand that the department is the seal issuing agency. However, the business registration center just provides seal samples on the national business registration portal.

In addition, as required by the Enterprise Law, police are no longer responsible for making seals and enterprises are allowed to make seals themselves three days after registering on the national portal.

Lam Phong from a company specializing in business establishment services said such a requirement was troublesome and questioned why they had to wait three days before they can use their own seals. 

In HCMC, the number of business registration applications has declined, with around 620 applications per day since the new law took effect compared to some 750 applications a day before. The HCMC Department of Planning and Investment said it takes time for enterprises to get used to new registration forms.

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