You may have heard of an ERC – Enterprise Registration Certificate, however, you might not be sure exactly what it is used for. Here is a short article explaining what an ERC is.
What is an Enterprise Registration Certificate?
ERC (Enterprise Registration Certificate) is a mandatory legal certificate for you to be eligible to set up a business in Vietnam. ERC is issued by the Business Registration Office – Department of Planning and Investment of each province/city.
According to Article 4 of the Enterprise Law 2020, an ERC is a paper document, or digital document, that records information about business registration that the business registration authority grants to an enterprise.
For foreigners (individuals or companies) setting up a business in Vietnam, they must have both an IRC & ERC, however for Vietnamese (individuals and companies), they are only required to obtain an ERC.
Enterprise Registration Certificate is an indispensable certificate when you want to set up a business
The information listed on the Enterprise Registration Certificate
An ERC includes the following main and basic contents:
- The name and the tax code of the enterprise;
- Address of the head office of the enterprise;
- Charter capital for companies, investment capital for private enterprises;
- Business lines (sometimes);
- Full name, contact address, nationality, number of legal papers of the legal representative(s) as well as basic information about the members/shareholders of the company; and
- Signature and seal of the issuer of the ERC.
Sample of the Enterprise Registration Certificate of a joint-stock company (English version)
Procedures for applying for an Enterprise Registration Certificate in Vietnam
The procedures for applying for an ERC in Vietnam are carried out according to Decree No. 01/2021/ND-CP on business registration.
From the date of submitting the application for an ERC, the competent authority is responsible for considering approving it within 03 days. Please note that this is the legally prescribed time frame, but that it could take a little longer in practice.
In case the dossier is not valid, the ERC applicant will be notified in writing of the contents that need to be amended or supplemented. In case of a refusal to issue a new ERC, the ERC applicant will be notified in writing with clarity and specifically stated reasons.
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Conditions to be granted an Enterprise Registration Certificate
Business owners are only granted ERC certificates by the Authority when they fully meet the following requirements:
- Business registration lines and industries are not banned from business investment.
- The name of the enterprise is set according to the provisions of Enterprise Law 2020.
- Valid business registration documents.
- The business registration fee has been fully paid in accordance with the law on fees and charges.
You must apply for an ERC to set up your business in Vietnam. This certificate acts as proof that your business is registered with the approval of the Government.
Besides, if you are a foreigner who wants to establish a business in Vietnam, you are required to have another certificate, which is the Investment Registration Certificate.
If you have any questions or need further advice on the procedure and necessary documents to open a company in Vietnam, consider contacting our business start-up experts – Barney and Marijn here!