What should you keep in mind when establishing a business in an industrial park?

Article overview

Establishing a business in an industrial park is the choice of many investors to take advantage of infrastructure and preferential policies. However, this process also requires a clear understanding of administrative procedures and specific notes. The article below by Long Phan will provide detailed information about the process of establishing a business in an industrial park, helping customers have an overview and best prepare for their business activities.

Notes on establishing a business in an industrial park
Notes on establishing a business in an industrial park

What is an enterprise in an industrial park?

Enterprises in industrial zones are enterprises operating in production, processing, and service business in the industrial sector, established and operating in industrial zones. These businesses often enjoy tax incentives, land, infrastructure and support from local authorities, creating favorable conditions for production and business activities.

What is the difference when establishing a business in an industrial park?

Compared to establishing a business outside an industrial park, establishing a business in an industrial park has the following differences:

  • Enterprises in industrial zones often enjoy many tax incentives, land, infrastructure and support from local authorities, creating favorable conditions for production and business activities.
  • Enterprises established in industrial zones often have to operate in the fields of manufacturing, processing or providing industrial services.
  • Establishing a business in an industrial park may require additional specific procedural steps.
  • Industrial parks create a centralized business environment, helping businesses easily find partners, cooperate in the supply chain and increase production efficiency.
  • Businesses in the industrial park will be granted land or premises with ready infrastructure, helping to save time and costs compared to building from scratch outside the industrial park.

Conditions for establishing a business in an industrial park

Conditions for establishing an enterprise in an industrial park are basically the same as those for establishing an enterprise outside an industrial park. Specifically, establishing a business in an industrial park must meet the following conditions:

Industry conditions: Businesses operating in industrial parks must belong to the industry group permitted by Vietnamese law and in accordance with the planning of the industrial park.

Capital conditions:

  • In the case of an enterprise in an industrial park registering a business line that does not require legal capital, the capital amount depends on the charter capital of the enterprise.
  • In case an enterprise registers a business line that requires legal capital, the capital amount must be equal to or greater than the legal capital amount.

Conditions on the location of the business headquarters:

  • The head office of the enterprise is located in the territory of Vietnam, is the contact address of the enterprise and is determined according to the administrative unit boundaries.
  • Have a phone number, fax number and email (if any).
  • Business location must be consistent with the planning of the industrial park.

Conditions for business name:

  • Do not use a name that is identical or confusing to the name of a business registered in the national database of business registration nationwide.
  • Do not use words or symbols that violate the historical, cultural, ethical traditions and fine customs of the nation.

Conditions for representatives: Pursuant to the provisions of Article 12 of the Law on Enterprise 2020:

  • This is the person responsible for exercising the assigned rights and obligations, must have full capacity for civil acts and not fall into prohibited cases according to the provisions of law.
  • The legal representative of an enterprise in an industrial park can be a director, president, manager…
  • Enterprises must ensure that there is always at least one legal representative residing in Vietnam. When there is only one legal representative residing in Vietnam, this person, when leaving Vietnam, must authorize in writing another individual residing in Vietnam to exercise the rights and obligations of the legal representative.

Procedures for establishing a business in an industrial park

Prepare documents

Pursuant to Decree 01/2021/ND-CP, Law on Enterprise 2020, documents needed to prepare to establish a business include:

  • Application for business registration;
  • Company charter;
  • List of members for limited liability companies with two or more members, partnerships; List of founding shareholders, list of shareholders who are foreign investors for joint stock companies;
  • A valid copy of one of the personal identification documents (Citizen ID/Passport) in case the business founder is an individual; Establishment decision or Business registration certificate or other equivalent documents, one of the personal identification documents of the authorized representative and the corresponding authorization document in the case of a business founder Industry is organization;
  • Valid copy of Investment Registration Certificate (if any);
  • Authorization document for another individual or organization to carry out procedures for establishing a business in an industrial park (if any).
  • Other documents as prescribed by specialized laws (if any).
Prepare documents to establish a business in an industrial park
Prepare documents to establish a business in an industrial park

Implementation steps

Step 1: Submit application

Submit 01 set of documents to the Business Registration Office under the Department of Planning and Investment where the enterprise is headquartered. Applications can be submitted directly, via postal service or online via the National Business Registration Portal.

Step 2: Receive, process documents and issue Business Registration Certificate

  • The Business Registration Office receives the application and gives a receipt.
  • Within 03 working days from the date of receipt of valid documents, the Business Registration Office checks the validity of the documents and issues a Business Registration Certificate.
  • In case the dossier is invalid, the Business Registration Office shall send a written notice of amendments and supplements to the dossier.

Step 3: Procedures after establishing a business

After being granted a Business Registration Certificate, the enterprise must carry out a number of procedures before going into official operation:

  • Engraving business seal;
  • Publish business registration content on the National Business Registration Portal;
  • Hang signs at company headquarters;
  • Buy digital signatures and invoices;
  • Declare and pay license tax and carry out procedures with tax authorities;
  • Contribute capital in full on time;
  • Open a business bank account;
  • Notify state management agencies about labor use.

Consulting services for establishing businesses in industrial parks

To ensure the establishment process takes place quickly and smoothly, customers can use Long Phan’s business establishment consulting services in industrial parks. Our Services include:

  • Consulting on choosing the type of business suitable to the business needs and regulations of the industrial park;
  • Consulting on choosing suitable business lines;
  • Consulting on conditions for establishing businesses in industrial parks;
  • Drafting business registration documents;
  • Consulting and guidance on applying for an investment license (if any);
  • Instructions on the order and procedures for registering to establish businesses in industrial parks;
  • Representing customers to carry out business registration procedures;
  • Consulting, explanation guidance and additional documents (if any);
  • Consulting on procedures after establishing a business;
  • Consulting and answering other issues related to establishing businesses in industrial parks.
Consulting on establishing businesses in industrial parks
Consulting on establishing businesses in industrial parks

Establishing a business in an industrial park brings many benefits to investors. However, for this process to go smoothly, customers need to master administrative procedures and important notes. Please contact Long Phan via the hotline: 0906735386 for detailed advice and professional support.