Detailed procedures for establishing a debt trading company from A to Z

Establishing a debt trading company brings many attractive business opportunities in today’s financial market. Establishing this company not only helps exploit debt recovery potential but also creates opportunities to optimize profits from bad debts. The following article will guide customers in detail step by step to establish a debt trading business accurately and effectively.

Current conditions for debt trading business

Debt trading is a business field that requires high professional capacity and strict compliance with legal regulations. According to Clause 2, Article 131 of Decree 31/2021/ND-CP, conditions for debt trading business activities have been abolished according to the provisions of Decree 69/2016/ND-CP, effective from January 1, 2016. In 2021, businesses that want to operate in this industry do not have to meet the conditions to do business. However, to conduct debt trading business, businesses need to meet the following important requirements:

• Charter capital appropriate to the scale of the enterprise;
• Strong legal capacity of the manager;
• Debt purchase and sale contracts are transparent and legal;
• Comply with regulations on financial management for businesses.

Enterprises’ understanding of these requirements will ensure transparency, reduce risks and manage the quality of debt trading business activities.

>>> Reference: The most standard debt buying and selling process.

The agency receives applications for debt trading business registration

Pursuant to the provisions of Article 14 of Decree No. 01/2021/ND-CP, the debt trading business registration process is carried out at:

• Business Registration Office under the local Department of Planning and Investment;
• National online business registration system.

Customers can consider choosing a registration method suitable for the specific conditions of their business. They need to prepare complete documents and comply with the application receipt procedures of the competent authority.

Detailed process of establishing a debt trading company

Profile components

According to the provisions of Decree No. 01/2021/ND-CP, individuals and organizations registering for establishing a debt trading company need to submit 01 set of documents to the competent state agency. The specific profile components will depend on the type of business that the registrant chooses, this choice will depend on the number of members and charter capital of the business.

The registration documents for establishing a debt trading company usually include:

• Application for business registration;
• Company charter;
• List of members/shareholders;
• Legal documents of members (ID card/CCCD/Passport);
• Investment registration certificate (if any);
• Copy of documents proving business location.

Implementation procedures

According to the provisions of Article 32 and Article 33 of Decree No. 01/2021/ND-CP, the process of establishing a debt trading company includes the following specific steps:

Step 1: Establish registration documents

The registration entity shall prepare 01 set of business establishment registration documents according to regulations.

Step 2: Submit application

The subject submits the application to the Business Registration Office where the enterprise is headquartered.

Application form:

• Submit directly;
• Submit online;
• Submitted via postal and telecommunications services.

Step 3: Appraisal of documents

• The Business Registration Office will issue a Business Registration Certificate within 03 working days if the application is valid.
• If the dossier is invalid, the Business Registration Office will notify the request for amendments and supplements within 03 working days.

Note: If after the above time limit has not received the Certificate or notice requesting amendment, the enterprise has the right to complain according to the provisions of law.

Step 4: Receive results and perform related procedures.

Notes when registering debt trading business

To effectively process the registration and debt trading business, customers need to pay attention to the following important points:

• Ensuring legality: Ensuring that the debt trading industry is allowed to do business according to the law.
• Charter capital: There should be sufficient charter capital as required by law for this industry.
• Complete documents: Prepare complete and accurate business registration documents.
• Investment certificate: If there are foreign investors, an investment registration certificate is required.
• Specialized license: A license to operate in the field of debt trading may be required from the authorities.
• Protecting consumer rights: Comply with regulations to protect customer rights when collecting debt.
• Financial accounting: Carry out financial reporting in accordance with legal regulations.
• Debt management: Comply with regulations on debt handling and transfer.
• Professional personnel: Ensure employees have appropriate certifications and expertise.
• Monitoring and reporting: Debt trading activities need to be monitored and reported according to legal requirements.
• Capacity of representative: The representative must have full capacity for civil acts and not be prohibited from establishing a business. They need to have knowledge and experience in running a business.
• Choose the type of business: Choose the appropriate type of business such as limited liability company, joint stock company or partnership depending on the purpose and scale of operations.
• Register accurate professions: Ensure accurate registration of professions related to debt trading and financial services such as debt collection and debt restructuring.
• Company name must not be duplicate: The company name must be unique, easy to identify and not overlap with previously registered businesses.

Full service of registering for establishing a debt trading company in Long Phan

Long Phan provides support services including:

• In-depth consulting on procedures for registering for establishing a debt trading company according to current regulations;
• Support customers in reviewing and drafting registration documents for each specific type of business;
• In-depth advice on the advantages and disadvantages of the type that customers choose to register;
• Representing customers to submit documents to competent agencies;
• Support customers in adding and modifying records when necessary;
• Support to answer questions and resolve problems that arise throughout the registration process.

Establishing a debt trading company requires careful preparation and strict compliance with regulations. With a team of experienced experts, we will accompany customers throughout the registration process. If you need advice and support, please immediately contact Long Phan the hotline: 0906735386 for dedicated advice and answers to questions during the business registration process.