The precise procedure for reviewing applications for gym operating licenses

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A gym operating license must be secured before launching fitness operations to prevent administrative penalties, business suspension, or delays in recovering setup and investment costs. To lawfully operate a gym, enterprises must obtain a Certificate of Eligibility for Sports Business Activities from the specialized physical education and sports authority under the Provincial People’s Committee. The statutory processing period is 7 working days from receipt of a complete and valid dossier. The Legal Updates below help businesses standardize their operating model, facilities, trainers, safety conditions, and application documents before submission, with professional guidance from Long Phan Consulting.

Gym licensing: a guide to establishing a tutoring center.
Understanding the basic legal due diligence process helps investors prepare optimally when starting a sports or education business.

Important legal note:

  • Gyms with instructors must meet the requirements for operating sports businesses and obtain a certificate before commencing commercial operation.
  • The licensing authority is specialized agencies for physical education and sports under the Provincial People’s Committee, usually the Department of Culture and Sports or the Department of Culture, Sports and Tourism.
  • The legally mandated timeframe for issuing the license is from the date of receipt of all valid documents; incorrect, incomplete, or dishonest documents may cause delays in the opening plan.
  • Operating without a license or failing to maintain the necessary conditions regarding personnel, equipment, medicine cabinets, and sanitary facilities may result in fines, revocation of licenses, or suspension of operations.

Overview of Licensing Conditions for Commercial Gym Operations

A gym operating license represents far more than a pre-opening administrative formality. It functions as a structured compliance mechanism to manage athletic safety risks, professional personnel standards, and corporate operational liabilities.

For business models utilizing fitness instructors or personal trainers (PTs), investors must establish the correct corporate legal entity during initial setup. Commercial entities conducting sports activities with instructional staff are statutorily mandated to incorporate as an enterprise, pursuant to Clause 2, Article 56 of the 2006 Law on Physical Activity and Sports (Amended 2018).

Core operational criteria requiring standardization prior to filing include:

  • Corporate Legal Structure: Facilities employing instructors must operate under an enterprise entity model, rather than relying on sole proprietorships when exceeding legal limits.
  • Physical Facilities & Equipment: Gym premises must strictly comply with national technical standards governing athletic facilities, equipment layout, and bodybuilding operations.
  • Qualified Personnel: Fitness instructors must hold recognized professional credentials, including specialized degrees or formal sports professional training certificates.

For active sole proprietorships and existing entities, the statutory grace period to align with mandatory conditions is 12 months from the effective date of Decree No. 36/2019/ND-CP, pursuant to Clause 1, Article 24 of Decree No. 36/2019/ND-CP. Selecting an incorrect entity model from the outset risks licensing rejections, conversion expenses, and launch schedule disruption.

Infrastructure Standards and Safety Infrastructure Systems

Commercial gym premises must be designed around legal compliance criteria rather than purely commercial layout logic. Operational risks routinely emerge when corporate investors execute lease agreements prior to verifying whether the floor plan can accommodate workout zones, sanitary facilities, or safe operational clearance.

Applicable legislation does not prescribe a rigid, universal minimum square footage across all gym models within the statutory baseline. Instead, enterprises must ensure that physical facilities and equipment strictly satisfy National Technical Standards promulgated by the Minister of Culture, Sports and Tourism, pursuant to Article 14 of Decree No. 36/2019/ND-CP.

Prior to interior construction, corporate legal teams must review the following infrastructure categories:

  • Training Areas: Flooring must be secure, non-slip, and free of structural bottlenecks that obstruct member movement.
  • Lighting & Ventilation Systems: Illumination and air handling must remain stable to minimize athletic injury risks and service complaints.
  • Locker Rooms, Storage, Showers, & Restrooms: Auxiliary facilities are mandatory statutory operating conditions and cannot be treated as optional amenities.
  • First-Aid Stations: Must be positioned in easily accessible locations tailored to handle common physical training injuries.

Failing to display facility rules, omitting locker rooms or sanitary units, lacking first-aid kits, or failing to maintain adequate workout area space triggers statutory administrative penalties. The fine for organizational entities ranges from VND 2,000,000 to VND 10,000,000 pursuant to Clause 1, Article 17 and Clause 2, Article 5 of Decree No. 46/2019/ND-CP.

Equipment Specifications and Exercise Space Requirements

Gym equipment selection must prioritize structural safety, inspectability, and compliance with specialized technical standards. Enterprises must avoid arranging exercise machinery based solely on commercial member capacity or maximum floor density.

Pursuant to Article 14 of Decree No. 36/2019/ND-CP, sports equipment must satisfy National Technical Standards. Clause 1, Article 17 of Decree No. 46/2019/ND-CP establishes explicit administrative penalties for facilities lacking basic operational safety equipment.

Enterprises should systematically audit the following equipment categories:

  • Exercise Machinery & Free Weights: Equipment must be stably installed with safe clearance distances aligned with member circulation paths.
  • Safety Rules & Signage: Facility rules and safety instructions must be conspicuously posted to mitigate legal disputes in the event of accidents or equipment misuse.
  • First-Aid Kits: Medical supplies must remain fully stocked to manage basic injuries, particularly in high-intensity training zones.
  • Member Tracking Logs: Operational logs support internal management and serve as evidentiary proof of controlled facility usage during administrative inspections.

Utilizing exercise equipment that fails to satisfy national technical standards exposes the enterprise to severe enforcement measures beyond mere rectifications. Corporate entities face administrative fines ranging from VND 10,000,000 to VND 20,000,000, alongside operational suspension penalties lasting 03 to 06 months, pursuant to Clause 2 and Clause 3, Article 17, and Clause 2, Article 5 of Decree No. 46/2019/ND-CP.

Professional Personnel Requirements and Mandatory Certifications

Qualified professional personnel represent a critical compliance milestone during the appraisal of an application for a Certificate of Eligibility for Sports Business Operations. Employing personal trainers (PTs) who possess practical experience but lack verifiable legal credentials exposes commercial fitness operations to immediate licensing rejections. Fitness facilities are statutorily mandated to appoint qualified instructional staff satisfying recognized professional criteria, pursuant to Clause 1, Article 13 and Clause 1, Article 15 of Decree No. 36/2019/ND-CP.

Qualifying professional credentials recognized under statutory standards include:

  • Coaches or Athletes (Level 2 or Higher): Individuals holding formally recognized athletic achievements or professional sports ratings.
  • Specialized Sports Degrees (Associate Degree or Higher): Personnel holding formal qualifications from recognized physical education or sports institutions.
  • Sports Professional Training Certificates: Official legal qualifications formally issued by competent authorities (commonly referenced in industry parlance as “bodybuilding coach certificates” or “certified PT credentials”).

Human Resources departments must audit candidate credential files prior to executing employment contracts for personal trainers, fitness directors, or medical personnel. Corporate entities utilizing unqualified instructional personnel face administrative fines ranging from VND 5,000,000 to VND 10,000,000, alongside operational suspension penalties lasting 01 to 03 months, pursuant to Clause 2 and Clause 3, Article 17 of Decree No. 46/2019/ND-CP.

Checklist for review before submitting an application for an operating license.
Business owners need to thoroughly check infrastructure and staffing standards to ensure compliance during on-site inspections.

Dossier Structure for the Certificate of Eligibility Application

An application for a Certificate of Eligibility for Sports Business Operations must establish two primary facts: the enterprise is lawfully incorporated, and the facility fully meets operational standards for bodybuilding and fitness. Missing personnel credentials or submitting an inaccurate summary report gives appraisal authorities clear grounds to demand amendments or deny authorization.

Statutory dossier components comprise the Application Form for the Certificate of Eligibility, a Summary Report on Operational Readiness and Business Conditions, a copy of the Enterprise Registration Certificate (ERC), and copies of professional qualifications for instructional staff, pursuant to Article 19 of Decree No. 36/2019/ND-CP.

Document Classification Required Content & Preparation Legal Impact & Risk Control
Statutory Document Application Form for Certificate of Eligibility Establishes the formal corporate licensing request. Inaccurate data creates revocation risks.
Statutory Document Summary Report on Operational Readiness Proves facilities, equipment, and staff are operational. Primary focus during physical inspections.
Statutory Document Copy of Enterprise Registration Certificate (ERC) Substantiates corporate legal status. Instructed gym facilities must operate under an enterprise model.
Statutory Document Copies of Trainer Qualifications & Certificates Validates that PTs, coaches, or instructional personnel meet statutory professional standards.
Supplementary Record Commercial Lease Agreement / Premises Title Proof Clarifies site occupation rights and mitigates lease disputes during physical inspections.
Supplementary Record Fire Safety Management Records / FPF Approval Manages pre-opening safety risks, especially within commercial centers or complex buildings.
Supplementary Record Facility Photos, Site Layouts & Equipment Maps Demonstrates compliant floor plan design, equipment spacing, lockers, restrooms, and first-aid placement.

Corporate leadership should finalize and verify all filing materials prior to fixing public launch dates or running presale membership campaigns. Errors in the Summary Report can extend processing timelines, trigger unexpected layout modification costs, and jeopardize initial capital projections.

Competent Licensing Authorities and Practical Evaluation Workflows

Licensing jurisdiction for a Certificate of Eligibility for Sports Business Operations is directly tied to the commercial location or head office of the enterprise. Submitting to an incorrect receiving authority results in dossier returns, delaying commercial launch schedules and disrupting presale membership strategies.

Specialized physical activity and sports authorities under Provincial People’s Committees are statutorily tasked with receiving dossiers, conducting physical inspections, and granting certificates, pursuant to Article 55 of the 2006 Law on Physical Activity and Sports (Amended 2018).

Licensing Authority Identification and Filing Portals

Enterprises must submit application dossiers to the competent provincial sports authority—typically designated as the provincial Department of Culture and Sports or Department of Culture, Sports and Tourism.

Pursuant to Clause 1 and Clause 3, Article 20 of Decree No. 36/2019/ND-CP (amended by Decree No. 31/2024/ND-CP), corporate entities may submit 01 application dossier via the following authorized methods:

  • In-Person Filing: Submitted directly at the provincial Public Administrative Service Center or Single-Window Receiving and Result Delivery Section.
  • Postal Delivery: Transmitted via postal services after internal legal counsel conducts a comprehensive compliance review.
  • Online E-Filing: Transmitted through the Provincial Public Service Portal where digital administrative infrastructure is implemented.

Multi-location fitness chains must evaluate jurisdictional requirements for each individual facility. Standardizing baseline filing documents across branches minimizes branch-level discrepancies and accelerates internal approval timelines.

>>> See more: Yoga Business Eligibility Certificate Procedure

Practical 6-Step Licensing and Inspection Workflow

To avoid costly layout adjustments or personnel re-allocations late in the construction phase, licensing procedures must run parallel with interior fit-outs, staff recruitment, and pre-opening operations.

The practical execution workflow should follow 06 sequential stages:

  1.  Step 1: Establish Corporate Entity: Incorporate an enterprise structure compliant with sports business operations employing instructional staff.
  2. Step 2: Complete Facility Infrastructure: Execute site build-out, ensuring workout zones, locker rooms, showers, restrooms, first-aid stations, and safety systems meet statutory standards.
  3. Step 3: Install Equipment & Deploy Staff: Position exercise machinery with safe clearances, display facility rules, stock first-aid kits, and hire qualified instructional personnel.
  4. Step 4: Assemble Statutory Dossier: Prepare the Application Form, Summary Report on Operational Readiness, Enterprise Registration Certificate (ERC), and trainer credential files.
  5. Step 5: File Application & Coordinate Inspection: Submit the dossier to the provincial sports authority and coordinate physical site inspections conducted by official appraisal delegations.
  6. Step 6: Secure Certificate & Launch Operations: Receive the formal Certificate of Eligibility for Sports Business Operations prior to commencing commercial sales and public member access.

Competent state authorities evaluate physical site conditions against submitted documents pursuant to Clause 2, Article 55 of the 2006 Law on Physical Activity and Sports (Amended 2018). Consequently, physical facilities and documentary submissions must remain completely consistent.

>>> See more: Reissuing Sports Business Certificates in Vietnam

Penalties for violating gym operating conditions

The risks of penalties for gyms often extend beyond fines. For fitness businesses, violations of operating conditions can disrupt membership revenue, damage brand reputation, and provide grounds for terminating lease agreements.

The following penalty levels should be incorporated into the internal compliance review process:

Violation The penalty level applies to organizations. Legal basis
Operating a sports business without a Certificate of Eligibility. 5,000,000 to 10,000,000 VNDand simultaneously ordered to return the illegal profits. Point a, Clause 2 and Clause 5 of Article 16 of Decree No. 46/2019/ND-CP
Businesses operating sports activities are required to have instructors but are not registered as businesses. 40,000,000 to 60,000,000 VND Article 15 and Clause 2 of Article 5 of Decree No. 46/2019/ND-CP
Lack of rules and regulations, changing rooms, restrooms, first-aid kits, or insufficient training space. 2,000,000 to 10,000,000 VND Clause 1 of Article 17 and Clause 2 of Article 5 of Decree No. 46/2019/ND-CP
Using personnel who do not meet the required professional qualifications. 5,000,000 to 10,000,000 VNDand suspend operations1 to 3 months Paragraphs 2 and 3 of Article 17 of Decree No. 46/2019/ND-CP

Businesses need to be aware that licenses are not only required at the time of opening. Businesses must also continuously maintain the necessary personnel, equipment, and facilities throughout their operation.

The certificate may be revoked if the business provides false information in its application, ceases operations, has its business registration revoked, is dissolved, goes bankrupt, or fails to maintain the business conditions. This is stipulated in Clause 1, Article 55 of the Law on Physical Education and Sports of 2006, as amended and supplemented in 2018, and Clause 1, Article 23 of Decree No. 36/2019/ND-CP.

Administrative Penalties for Non-Compliant Gym Operations

Compliance risks extend beyond monetary fines. Operating a commercial fitness center in violation of statutory conditions disrupts member revenue, damages corporate brand equity, and provides legal grounds for landlords to terminate commercial lease agreements.

Internal compliance audit procedures should incorporate the following statutory penalty thresholds:

Violating Conduct Administrative Fine (Organisations) Statutory Basis
Operating without a valid Certificate of Eligibility VND 5,000,000 to VND 10,000,000 & disgorgement of illegally obtained profits Point a, Clause 2 & Clause 5, Article 16, Decree No. 46/2019/ND-CP
Conducting instructed sports activities without enterprise registration VND 40,000,000 to VND 60,000,000 Article 15 & Clause 2, Article 5, Decree No. 46/2019/ND-CP
Lacking facility rules, lockers, restrooms, first-aid, or adequate floor space VND 2,000,000 to VND 10,000,000 Clause 1, Article 17 & Clause 2, Article 5, Decree No. 46/2019/ND-CP
Employing unqualified instructional personnel VND 5,000,000 to VND 10,000,000 & 01-03 month operational suspension Clause 2 & Clause 3, Article 17, Decree No. 46/2019/ND-CP

Pre-Submission Compliance Checklist

This pre-filing compliance checklist enables corporate management to conduct an internal readiness review prior to official state appraisals, synthesizing statutory criteria under Articles 14, 15, and 19 of Decree No. 36/2019/ND-CP.

  • Appropriate Business Line Registration: Confirm the enterprise holds valid legal status incorporating sports business operations before applying.
  • Lawful Premises Rights: Secure a commercial lease agreement or title document supporting gym operations at the target location.
  • Completed Workout Floor Build-Out: Ensure training areas guarantee operational safety, smooth traffic flow, and compliant layout spacing.
  • Standard-Compliant Fitness Equipment: Verify that exercise machinery, free weights, and functional zones satisfy national technical standards.
  • Sanitary & Restroom Facilities: Ensure fully functional restrooms and showers are completed prior to dossier submission.
  • Locker & Changing Areas: Designate clear changing areas and member storage options within the facility floor plan.
  • First-Aid Medical Station: Equip fully stocked first-aid kits in accessible locations to handle athletic injuries.
  • Qualified Fitness Instructors: Retain fitness trainers holding valid professional degrees, certificates, or sports credentials.
  • Personnel Credential Documentation: Maintain copies of trainer qualifications, employment contracts, and certification files.
  • Dossier Data Consistency: Cross-check the Application Form, Summary Report, and supporting documents against physical site conditions.

>> See more: Procedures Must a Business Complete When Expanding Its Business Lines

The structure of the application file for a gym operating license.
Having all the necessary legal documents and supporting evidence prepared is an effective strategy to shorten the processing time of administrative procedures.

Strategic Legal Licensing Services for Commercial Gyms at Long Phan Consulting Company

Navigating gym operating licenses requires simultaneous control over corporate structures, commercial leases, personnel qualifications, and facility safety standards. Long Phan Consulting Company assists corporate clients in structuring a compliant licensing roadmap that eliminates file rejections, launch delays, and unexpected renovation costs.

Our legal scope includes:

  • Executing Legal Due Diligence on commercial real estate leases regarding gym compliance and fire safety viability.
  • Advising on corporate structuring for standalone fitness centers, multi-location chains, or commercial franchise models.
  • Auditing physical site conditions, machinery layouts, locker facilities, sanitary units, and first-aid placement prior to submission.
  • Verifying trainer credentials, professional certificates, and employment agreements for instructional staff.
  • Drafting complete application dossiers, including the Application Form, Summary Report, and supporting legal schedules.
  • Representing clients before provincial Departments of Culture and Sports to file applications, handle clarifications, and secure certificates.
  • Advising on administrative penalty mitigation and rectifying operational compliance deficiencies.

Investors and corporate managers may transmit commercial lease files, corporate certificates, facility layouts, and personnel credentials via Email at info@longphanpmt.com or WhatsApp/Zalo at +84 906 735 386 for a preliminary compliance review.

Frequently Asked Questions about the Standard Procedure for Reviewing Applications for Gym Operating Licenses

Compliance risk management is crucial for investors to protect their cash flow when applying for a “Gym Operating License.” Early identification of legal variables regarding organizational structure, approval deadlines, and business suspension penalties will effectively prevent operational disruptions. Management can immediately consult in-depth strategic solutions to directly address the most common legal bottlenecks.

1. Is it mandatory for personal trainers who open small-scale gyms to register as a business?

Investors are required to complete the business registration procedures if their sports business provides training instructors. Sports businesses that are required to provide instructors but fail to register will be fined between VND 40,000,000 and VND 60,000,000, as stipulated in Article 15 and Clause 2 of Article 5 of Decree No. 46/2019/ND-CP.

2. Can a business operating in the sports sector with 10 or more employees continue to operate?

Household businesses are not permitted to continue operating if they regularly employ 10 or more workers. Investors are required to register for conversion to a business enterprise model to meet the legal requirements stipulated in Article 56 of the 2006 Law on Physical Education and Sports, as amended in 2018.

3. What is the timeframe for the Department of Culture and Sports to review and issue a Certificate of Business Eligibility?

The competent state agency is required to conduct on-site inspections and issue licenses from the date of receiving complete and valid documents. In case of refusal to grant a license, the management agency must notify in writing and clearly state the reasons based on Article 55 of the Law on Physical Education and Sports of 2006, as amended and supplemented in 2018.

4. What penalties will a business face for operating a chain of gyms without a business license?

Businesses operating without a license will be subject to administrative penalties in the form of fines ranging from VND 5,000,000 to VND 10,000,000. In addition, the authorities will require the violating establishment to return all illegal profits obtained, as stipulated in Point a, Clause 2 and Clause 5 of Article 16 of Decree No. 46/2019/ND-CP.

5. What legal risks does a gym face if its exercise equipment is not positioned at the required safe distances?

Businesses will be fined from VND 10,000,000 to VND 20,000,000 for failing to ensure safe distances between exercise equipment. Authorities also have the right to apply additional penalties, such as suspending operations for 1 to 3 months, based on Point d, Clause 2 and Clause 5 of Article 18, and Clause 2 of Article 5 of Decree No. 46/2019/ND-CP.

6. Within what timeframe is a business obligated to return its Certificate of Business Eligibility upon ceasing operations?

Businesses are required to return their Certificate of Business Eligibility to the licensing authority within a maximum of 3 working days from the date of official business cessation. The management agency will receive the certificate and issue a revocation decision immediately thereafter, as stipulated in Clause 1, Article 20 of Decree No. 36/2019/ND-CP.

Conclusion

Securing a gym operating license in Vietnam before grand opening is essential to safeguard capital, prevent administrative fines, and avoid operational suspension. Central to this process is obtaining a Certificate of Eligibility for Sports Business Operations, which requires a corporate entity model, compliant facilities, safe equipment spacing, and qualified trainers. For investors, fitness chains, and franchise operators, errors in premises layout or trainer credentials can disrupt cash flow and incur unbudgeted conversion costs. Contact Hotline 1900636389 for comprehensive legal support from the advisory team at Long Phan Consulting Company.

📚 This article has been professionally reviewed based on the following legal documents:

  • 2006 Law on Physical Education and Sports, as amended and supplemented in 2018
  • Decree No. 36/2019/ND-CP detailing certain articles of the Law amending and supplementing certain articles of the Law on Physical Education and Sports
  • Decree No. 46/2019/ND-CP on administrative penalties in the field of sports
  • Decree No. 31/2024/ND-CP amending and supplementing certain articles of Decree No. 01/2012/ND-CP, Decree No. 61/2016/ND-CP, and Decree No. 36/2019/ND-CP
  • Note: Laws and regulations may change over time. Please contact Long Phan Consulting directly via Hotline 1900.63.63.89 for the latest updates.
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