Retail establishment license: Conditions & procedures

A retail establishment license is an important document that businesses or business households need to have to operate in the retail sector and provide related services legally. Owning this license not only helps ensure businesses comply with legal regulations but also creates trust for customers, partners, and regulatory agencies. This article will provide detailed information about the necessary conditions as well as licensing procedures for retail and service establishments.

Conditions for issuance of retail establishment licenses

According to the provisions of Article 22 of Decree 09/2018/ND-CP, to be granted a retail license, customers need to meet the following conditions:

1. In case of establishing the first retail facility, conditions include:

• Have a financial plan to set up a retail facility;
• No overdue tax debt in case it has been established in Vietnam for 1 year or more;
• The location of the retail facility is in accordance with the relevant planning in the geographical market area.

2. In case of establishing a retail outlet other than the first retail outlet, conditions include:

In case the economic needs test is not required: Meets the same conditions as those for establishing the first retail establishment.

In case an economic needs test must be performed:

• Meet the conditions for establishing the first retail establishment;
• Meet the Economic Needs Test criteria including: The size of the geographic market area affected by the retail establishment; Number of retail establishments operating in the geographic market area; The impact of retail establishments on market stability and business activities of retail establishments and traditional markets in the geographical market area; The impact of retail establishments on traffic density, environmental sanitation, and fire prevention in the geographical market area; The ability of retail establishments to contribute to the socio-economic development of the geographical market area, specifically: Creating jobs for domestic workers; Contribute to the development and modernization of the retail industry within the geographical market area; Improve the environment and living conditions of the population in the geographical market area; Ability and level of contribution to the state budget.

Procedures for applying for a retail establishment license

Prepare documents

Customers need to prepare complete documents as prescribed in Article 27 of Decree 09/2018/ND-CP, including:

1. Application for a retail establishment license (Form No. 04 in the Appendix issued with this Decree);
2. The explanation contains:

• Location of retail establishment: Address of retail establishment; a description of the general, associated areas and areas used to establish retail establishments; explain the satisfaction of the conditions specified in Point c, Clause 1, Article 22 of this Decree; Attached are documents on the location of the retail establishment;
• Business plan at retail establishments: Presenting business plans and market development; labor needs; Assess the socio-economic impact and efficiency of the business plan;
• Financial plan for establishing a retail establishment: Report on business performance results on the basis of the audited financial statements of the most recent year in case established in Vietnam for 01 year or more; explanation of capital, capital sources and capital mobilization plans; Attached are financial documents.

3. Tax authority documents proving no overdue tax debt.
4. Copies: Business registration certificate, Investment registration certificate for retail establishment project (if any), Business license.
5. Explanation of ENT criteria specified in Points c, d and đ, Clause 2, Article 23 of this Decree, in case ENT must be performed.
6. Copy of ID card/Citizen identification card/Passport of the legal representative.
7. Other documents as prescribed (for example: premises lease contract, land use right certificate…).

Licensing procedures

In case of applying for a License to establish a first retail establishment, a retail establishment other than the first retail establishment is not required to carry out ENT procedures.

The licensing application procedure includes the following steps:

Step 1: Submit application:

• Quantity: 2 sets
• How to submit: send directly or by post or electronically (if applicable) to the Licensing Agency.
• Receiving agency: Department of Industry and Trade where the retail establishment is located.

Step 2: The licensing agency checks the validity of the dossier:

If the dossier is incomplete and invalid, within 03 working days from the date of receiving the dossier, the Licensing Agency shall check and request amendments and supplements.

Within 10 working days from the date of receipt of complete and valid documents, the Licensing Agency checks the satisfaction of the conditions specified in Clause 1, Article 22 of Decree 09/2018/ND-CP:

• In case the conditions are not met, the Licensing Agency will respond in writing and clearly state the reason;
• In case the conditions are met, the Licensing Agency shall send the dossier with a document to seek opinions from the Ministry of Industry and Trade according to the provisions of Point c, Clause 3, Article 8 of Decree 09/2018/ND-CP (Form No. 09 in Appendix promulgated together with this Decree).

Step 3: The Ministry of Industry and Trade issues a document approving the license to establish a retail establishment:

Within 07 working days from the date of receiving the dossier, the Ministry of Industry and Trade, based on the corresponding content specified in Article 25 of Decree 09/2018/ND-CP, will issue a written approval for the retail establishment license; In case of refusal, there must be a written response clearly stating the reason (Form No. 10 in the Appendix issued with this Decree).

Step 4: The Department of Industry and Trade issues a retail establishment license:

Within 03 working days from the date of receiving the written approval from the Ministry of Industry and Trade, the Licensing Agency shall issue a retail establishment license. In case the Ministry of Industry and Trade refuses, the Licensing Agency must respond in writing and clearly state the reason.

In case of applying for a License to establish a retail establishment other than the first retail establishment, an ENT must be performed

The licensing application procedure includes the following steps:

Step 1: Submit application:

• Quantity: 2 sets
• How to submit: send directly or by post or electronically (if applicable) to the Licensing Agency.
• Receiving agency: Department of Industry and Trade where the retail establishment is located.

Step 2: The licensing agency checks the validity of the dossier:

If the dossier is incomplete and invalid, within 03 working days from the date of receiving the dossier, the Licensing Agency shall check and request amendments and supplements.

Within 05 working days from the date of receipt of complete and valid documents, the Licensing Agency checks the satisfaction of the conditions specified in Clause 1, Article 22 of Decree 09/2018/ND-CP:

• In case the conditions are not met, the Licensing Agency will respond in writing and clearly state the reason;
• In case the conditions are met, the Licensing Agency proposes to establish an ENT Council according to the provisions of Clauses 1 and 2, Article 24 of this Decree.

Step 4: Within 07 working days from the date of receiving the request to establish the ENT Council, the Provincial People’s Committee establishes the ENT Council.

Within 30 days from the date of establishment, the ENT Council evaluates the ENT criteria specified in Clause 2, Article 23 of Decree 09/2018/ND-CP so that the Chairman of the ENT Council can issue a written conclusion and proposal.

Step 5: Within 03 working days from the date of receiving the written conclusion of the proposal from the Chairman of the ENT Council:

• In case the written conclusion proposes not to grant a license, the Licensing Agency shall issue a written response clearly stating the reason;
• In case of a written conclusion proposing a license, the Licensing Agency shall send a dossier with a document seeking opinions from the Ministry of Industry and Trade according to the provisions of Point c, Clause 3, Article 8 of Decree 09/2018/ND-CP (Form No. 09 in the Appendix issued with this Decree).

Step 6: The Ministry of Industry and Trade issues a document approving the license to establish a retail establishment:

Within 10 working days from the date of receiving the dossier, the Ministry of Industry and Trade, based on the corresponding content specified in Article 25 of Decree 09/2018/ND-CP, will issue a written approval for the retail establishment license; In case of refusal, there must be a written response clearly stating the reason (Form No. 10 in the Appendix issued with this Decree).

Step 7: The Department of Industry and Trade issues a retail establishment license:

Within 03 working days from the date of receiving the written approval from the Ministry of Industry and Trade, the Licensing Agency shall issue a License to establish a retail establishment. In case the Ministry of Industry and Trade refuses, the Licensing Agency must respond in writing and clearly state the reason.

Service for applying for a retail establishment license in Long Phan

Long Phan provides full retail license application support services, helping customers save time and effort. Services include:

• Advice on licensing conditions and procedures.
• Support in preparing documents.
• Drafting documents and legal documents.
• Representing customers in working with competent authorities.
• Monitor progress and complete licensing procedures.

Applying for a retail license is a prerequisite for legally operating stores and services. Long Phan with a team of experienced experts is ready to support customers, helping customers save time, and costs. Contact the hotline 0906735386 for detailed advice.