A. License for setting up retail outlet
Pursuant to the provisions of Decree 09/2018/ND-CP, a retail outlet is a location where retail activities are carried out. Foreign-invested economic organizations that want to set up retail outlet in Vietnam must first obtain license for setting up retail outlet.
1. Conditions for obtaining a license for setting up a retail outlet
(a) Setting up the first retail outlet
– Having a financial plan in place for setting up a retail outlet
– If it has been established in Vietnam for one year or more, it no longer owes overdue taxes; and
– The retail outlet’s location is in accordance with the relevant planning in the geographic market area.
(b) Setting up the retail outlet other than the first retail outlet
According to regulations, when setting up a retail outlet other than the first retail outlet, a foreign-invested economic organization must carry out an economic needs test (ENT), unless that retail outlet has an area of less than 500m2, set up in a commercial center and not in the type of convenience store, mini supermarket
– In case of without requiring compliance with an economic needs test:
A retail outlet other than the first retail outlet must satisfy the conditions corresponding to the conditions applied for setting up the first retail outlet.
– In case of requiring compliance with an economic needs test::
In addition to satisfying the same conditions as the first retail outlet, a retail outlet other than the first retail outlet must additionally satisfy criteria of the economic needs test, which is as follows:
+ The scale of geographic market area being affected by the operation of retail outlet;
+ Number of retail outlets operating in the geographic market area;
+ The impact of retail outlet on the stability of the market and business activities of other retail outlets, traditional markets in the geographical market area;
+ The impact of retail outlet on traffic density, environmental sanitation, and fire protection in the geographical market area;
+ The ability of retail outlet to contribute to the socio-economic development of the geographical market area.
2. Dossier of obtaining a license for setting up a retail outlet:
– An application form for license for setting up retail outlet;
– Explanation about:
+ Location of retail outlet;
+ Retail outlet Business plan;
+ Financial plan for setting up retail outlet;
– Documents on the location of the retail outlet;
– Financial documents;
– Documents from tax authorities proving that there is no outstanding tax liability;
– Certified true copy of: Enterprise registration certificate; Investment registration certificate for the project of setting up retail outlet (if any); Trading license; and
– An explanation of the ENT criteria (for some specific criteria) in the case that an ENT is required.
Dossier consists of two, which are delivered to the licensing agency directly, via post, or electronically.
3. Authority handling application for obtaining license for setting up a retail outlet
Department of Industry and Trade, where the headquarters of the foreign-invested economic organization is located.
Depending on the case, the Department of Industry and Trade will grant license for setting up a retail outlet if the dossiers meet all the conditions or after consulting the Ministry of Industry and Trade, the line management ministry.
B. The scope of works of LMP Lawyers, the disadvantage if the client do it by themselves, the advantages if client is supported by LMP Lawyers
1. Scope of works
For obtaining license for setting up a retail outlet, LMP Lawyers shall assist clients in performing the following tasks:
(a) Advising clients on legal issues related to the licensing procedures;
(b) Preparing a list of documents and information to be provided by the client in order to draft a dossier that complies with the law and the licensing authority’s requirements;
(c) Submitting the dossier on behalf of the client to the licensing authority;
(d) Monitoring the status of the application, promptly discussing with the processing officer as soon as additional adjustments are required;
(e) Receiving results on behalf of the client and delivering the results to the client.
2. Disadvantage if clients do it themselves
With many years of experience in assisting businesses to obtain license for setting up a retail outlet, LMP realize that clients may face the following risks if clients carry out the procedures by themselves:
(a) The fact that legal documents are not clear or a provision of this legal document can be amended, supplemented, replaced or guided by other legal documents may cause difficulties to the client in determining the legal basis applied for the procedure.
(b) Clients may not declare correctly as required by law and competent authority due to inexperience in filing documents. This makes clients take a long time to complete the procedure, affecting the progress of implementing the client’s business plans.
(c) The client misidentifies the competent authority to receive the application.
(d) The client does not closely monitor the application processing situation, leading to the inability to promptly handle the adjustment and supplement of the dossier upon request from the licensing authority.
3. Advantage if supported by LMP Lawyers
When clients are supported by LMP Lawyers, clients will receive the following advantages as follows:
(a) Clients save a lot of time in the licensing procedure because clients simply have to provide LMP with the information and documents required by LMP.
(b) The procedure is carried out quickly and accurately and in compliance with the law.
(c) Getting enthusiastic advice and support from LMP Lawyers’ experienced professionals.
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