Debt trading business line code must be registered

Article overview

Debt trading business is a rapidly growing industry in today’s financial market. Registering the debt trading business code not only helps businesses operate legally but also brings many important benefits, such as creating opportunities to access capital, reduce financial risks and enhance competitiveness in the market. The following article will provide comprehensive details about the process of establishing a company specializing in debt trading.

Regulations on debt trading business line code
Regulations on debt trading business line code

General Concepts of Debt Trading

Debt trading is a complex and sensitive financial activity in the modern business environment. According to the provisions of Clause 1, Article 3 of Circular 09/2015/ND-CP regulations on debt trading activities of credit institutions and foreign bank branches, debt trading is understood as a written agreement on the transfer of debt claim rights for debts arising from lending operations, payments in lieu of guarantees, in which the debt seller transfers ownership of the debt to the debt buyer and receives payment from the debt buyer.

The nature of debt trading business includes one party (usually a credit institution or bank) selling bad debts or bad debts to another party with the aim of recovering part of the value and minimizing risks. The debt buyer will carry out debt recovery measures, which can be through negotiation, bargaining, or permitted legal measures.

Debt Trading Business Line Code

The debt trading business line code is an important factor in the business registration process. According to the provisions in Appendix I of Decision 27/2018/QD-TTg, industry codes related to debt trading activities include:

  • Industry code 6499: Other financial service activities not classified elsewhere (except insurance and social insurance);
  • Industry code 4610: Agents, brokers, auctions;
  • Industry code 6619: Financial services support activities have not been classified;
  • Industry code 6810: Real estate business and land use rights;
  • Industry code 7020: Management consulting activities.

Choosing and registering the correct industry code will help businesses operate legally and avoid unwanted legal risks. Each industry code will have its own characteristics and requirements, so professional advice is extremely important.

Debt trading business codes can be registered
Debt trading business codes can be registered

Debt Trading Business Registration Process

Documents Needed to Prepare

To register for a debt trading business, customers need to prepare a complete and accurate set of documents. The components of the debt trading business registration application are specified according to each type of business that the individual has. The selection process and exact dossier composition are specified in Decree No. 01/2021/ND-CP. In general, important documents include:

  • Application for business registration, including registration of industry codes related to the field of debt trading activities;
  • Company Charter;
  • List of members/shareholders;
  • Copies of legal documents of members of the partnership; Legal documents of legal representatives, members of limited liability companies with 02 or more members;
  • Legal documents for authorized representative and document appointing an authorized representative;
  • Copy of Investment Registration Certificate in case the company is established by a foreign investor;
  • And some other documents depending on special cases.

Based on the content in: Article 19, Article 20, Article 21, Article 22 of the Law on Enterprise 2020.

Carefully preparing documents will help the registration process go quickly and smoothly. Each document has its own requirements for validity and authenticity.

Execution Sequence

The debt trading business registration process complies with the provisions of Article 33, Decree No. 01/2021/ND-CP, including specific steps:

Step 1: Prepare registration documents: Individuals registering for debt trading services shall prepare 01 set of registration documents for each type of business that the customer chooses.

Step 2: Submit application: Individuals submit applications at the Business Registration Office under the Department of Planning and Investment of the province where the business will be headquartered.

The form of application submission is prescribed as follows:

  • Submit directly to the Business Registration Office;
  • Submit online via the National Business Registration Portal;
  • Submitted via postal and telecommunications services.

Step 3: Document appraisal: The Business Registration Office issues the Business Registration Certificate within 03 working days from the date of receipt of valid documents.

In case the dossier is invalid or the name of the enterprise requested for registration is not in accordance with regulations, the Business Registration Office must notify in writing the content that needs to be revised or supplemented to the enterprise founder or enterprise within 03 working days from the date of receiving the dossier.

The Business Registration Office records all requests for amendments and supplements to business registration documents for each set of documents submitted by the enterprise in a Notice of request for amendments and supplements to business registration documents.

Step 4: Receive results and pay related fees and charges as required by authorities.

General regulations on registration procedures
General regulations on registration procedures

Debt Buying and Selling Consulting Services in Long Phan

Long Phan is proud to be a unit specializing in providing consulting services for establishing professional debt trading companies. With a team of experienced experts, we are committed to providing comprehensive and quick solutions to our customers.

Our services include:

  • In-depth consulting on procedures for establishing a debt trading business according to current regulations;
  • Support customers in drafting documents to register debt trading business;
  • Support customers to look up and register debt trading business codes;
  • Support customers to submit and explain registration documents to competent authorities;
  • Support customers in answering related issues when registering a business;
  • Receive and deliver results to customers.

Registering the debt trading business code is not only a legal requirement but also brings many practical benefits to businesses. Long Phan, with many years of experience in consulting and supporting businesses, commits to accompanying customers throughout the registration process. If you need in-depth advice, please contact Long Phan via the hotline: 0906735386 for the most professional and dedicated advice.