Latest conditions for the business of debt trading services today

Article overview

Business conditions for debt trading services is an issue that needs to be known to ensure that debt trading service business activities take place legally and effectively. This is an area attracting the attention of many investors. The article below by Long Phan will provide detailed information about the latest debt trading service business conditions and procedures for establishing a debt trading company.

Business conditions for debt trading services
Business conditions for debt trading services

What is debt trading?

Debt purchase and sale is a written agreement on the transfer of debt claim rights for debts arising from lending transactions, payments in lieu of guarantee transactions, according to which the debt seller transfers ownership of the debt to the debt buyer and receives payment from the debt buyer.

Latest conditions for business of debt trading services today

Previously, debt trading service business was a conditional business line, according to the provisions of Decree No. 69/2016/ND-CP. However, according to Law on Investment No. 61/2020/QH14 and Decree No. 31/2021/ND-CP, debt trading business is no longer a conditional business.

Decree 31/2021/ND-CP abolished Decree 69/2016/ND-CP, meaning the abolition of previous conditions for debt trading services. Therefore, currently, the debt trading business is carried out as a normal service business. This creates favorable conditions for businesses to participate in the debt trading market, contributing to promoting bad debt handling activities.

Procedures for establishing a debt trading service company

Prepare documents

To establish a debt trading service company, customers need to prepare complete documents as prescribed in Decree 01/2021/ND-CP. Profile includes:

  • Application for registration of debt trading company;
  • List of shareholders/capital contributing members;
  • Charter of the debt trading company;
  • Legal documents of individuals and organizations that are company members, founding shareholders, and shareholders that are foreign investors;
  • Legal documents of the individual who is the authorized representative (if any);
  • Investment registration certificate in case the enterprise is established or participates in the establishment by a foreign investor or economic organization with foreign investment capital.

Implementation steps

The process of establishing a debt trading company includes the following steps:

Step 1: Submit documents to establish a debt trading company

Applications can be submitted directly to the Business Registration Office under the Department of Planning and Investment where the company is headquartered.

Step 2: Receive, process documents and issue certificates

  • After receiving the business registration application, the Business Registration Office issues a Receipt of receipt of the application to the applicant.
  • After giving the receipt of receipt of the application, the Business Registration Office fully and accurately enters the information in the application, checks the validity of the application and downloads the digitized documents in the registration application. Register your business in the National Information System for Business Registration.
  • In case the dossier is not valid, the Business Registration Office will notify amendments and supplements within 03 working days from the date of receipt of the dossier.
  • The Business Registration Office issues the Business Registration Certificate within 03 working days from the date of receipt of valid documents.
Procedures for establishing a debt trading company
Procedures for establishing a debt trading company

Step 3: Announce business registration information

After receiving the Business Registration Certificate, the company publishes the business registration content on the National Business Registration Portal within 30 days.

Step 4: Engrave the company seal

The company seal must ensure the name and business code. After engraving the seal, the company publishes the seal sample on the National Business Registration Portal.

Step 5: Register a bank account

Registering a bank account helps companies conduct financial transactions conveniently.

Step 6: Make and hang company signs

After being established, a debt trading company needs to order and hang a company sign. The main information of the sign includes company name, address and contact hotline phone number. Hang signs at the headquarters or branch offices in accordance with the provisions of law.

Step 7: Declare and pay taxes

The company needs to declare and pay taxes according to regulations, including value added tax, corporate income tax and license tax. However, license tax will be exempted for newly established businesses in the first year.

Step 8: Buy a digital signature

Digital signatures are used to perform electronic transactions, such as paying taxes, declaring taxes online, and signing contracts.

Step 9: Complete the capital contribution to establish the company

Members/shareholders need to complete capital contribution within 90 days from the date of issuance of the Business Registration Certificate.

Consulting services, business support and debt trading services at Long Phan

Long Phan is a professional consulting unit with extensive experience in the field of debt trading services. We provide comprehensive consulting services, including:

  • Consulting on business conditions for debt trading services;
  • Consulting on types of debt trading businesses suitable for customers;
  • Consulting and effective business planning in the field of debt trading;
  • Support in drafting documents to establish a debt trading company;
  • Instructions on the order and procedures for establishing a debt trading company;
  • Representing customers to carry out company registration procedures and other related procedures;
  • Consulting and guidance on tax code registration and tax declaration;
  • Consulting on other tasks after establishing the company;
  • Answer questions and support customers during business operations.
Consulting on business activities of debt trading services
Consulting on business activities of debt trading services

Debt trading business is increasingly developing in Vietnam. The abolition of business conditions for this service has created favorable conditions for businesses to participate in the market. However, to operate effectively, customers need to master legal regulations, build strict business processes and choose reputable partners. Please contact Long Phan’s hotline: 0906735386 for the best advice and support.