Instructions on the detailed process of establishing a labor supply company

Article overview

A labor supply company is a business operating legally in the field of labor supply in Vietnam. Meeting the conditions to establish this type of business helps the business operate legally and effectively. In the article below, we will provide specific information about the process of establishing a labor supply company.

Detailed procedures for establishing a labor supply company
Detailed procedures for establishing a labor supply company

What is labor supply? Conditions for granting labor supply licenses

Labor supply (also known as labor subleasing) is the activity of a business licensed to do labor subleasing business. This business will sign contracts with workers but will not directly employ them, but will rent them out to other businesses.

Pursuant to Article 21 of Decree 145/2020/ND-CP, the conditions for a company to be granted a labor supply license are:

  1. Enterprises must make a deposit in the amount of 2,000,000,000 VND (two billion VND).
  2. Requirements for legal representatives of enterprises conducting labor subleasing activities:
  • Be a business manager according to the provisions of the Law on Enterprise;
  • No criminal record;
  • Have at least 03 years (36 months) of direct experience doing professional or management work related to labor subleasing or labor supply activities within the 5 consecutive years before applying for a license.

Current labor supply industry code

According to Appendix II of Decision 27/2018/QD-TTg, the general labor supply industry code is 7830 with group 78301 being domestic labor supply and 78302 being foreign labor supply.

Labor supply industry code
Labor supply industry code

Documents need to be prepared to establish a labor supply company

Pursuant to the Law on Enterprise 2020 and Decree 01/2021/ND-CP, the required documents to establish a labor supply company are:

  1. Application for business registration;
  2. Company charter;
  3. List of members/shareholders;
  4. Copies of the following documents:
  • Personal legal documents for the company’s legal representative;
  • Personal legal documents for company members, founding shareholders, and shareholders who are foreign investors who are individuals;
  • Legal documents of the organization for members, founding shareholders, shareholders who are foreign investors being organizations;
  • Legal documents of the individual for the authorized representative;
  • For members and shareholders who are foreign organizations, copies of the organization’s legal documents must be consular legalized;
  • Investment registration certificate in case the enterprise is established or participates in the establishment by foreign investors or economic organizations with foreign investment capital.

Steps to establish a labor supply company

Register to establish a business

Steps to establish a business will include:

Step 1: Submit application

Submit documents to establish a company at the Business Registration Office where the company is headquartered.

Step 2: Receive documents

After receiving the business registration application, the Business Registration Office issues a Receipt of receipt of the application to the applicant.

Step 3: Process documents and issue certificates

  • The Business Registration Office enters complete and accurate information in the business registration dossier, checks the validity of the dossier and uploads the digitized documents in the business registration dossier into the National Business Registration Information System.
  • In case the dossier is not valid, the Business Registration Office must 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.
Steps to register a business
Steps to register a business

Apply for a labor hire permit

To be granted a labor sublease license, businesses need to follow the process specified in Article 24 and Article 25 of Decree 145/2020/ND-CP, specifically:

Step 1: Prepare documents

  1. Written request for license according to Form No. 05/PLIII Appendix III of this Decree.
  2. Biography of the legal representative according to Form No. 07/PLIII Appendix III of this Decree.
  3. Judicial record card No. 1 of the legal representative (or criminal record card from the country of nationality if a foreigner). The voucher must be issued no more than 6 months ago.
  4. Document proving professional or management time in labor subleasing:
  • Copy of the labor contract, employment contract, or recruitment and appointment decision of the representative.
  • Copy of the appointment decision or document certifying the election results, or business registration certificate (if it is a labor subleasing enterprise).
  • Certificate of deposit according to Form No. 01/PL III of this Decree.

Step 2: Submit application

Submit a complete set of documents to the Department of Labor, War Invalids and Social Affairs where the enterprise is headquartered to request a license.

Step 3: Check documents and issue receipts

The Department of Labor, War Invalids and Social Affairs checks the validity of the dossier.

If the application is complete, issue a receipt clearly stating the date, month and year of receipt.

Step 4: Check documents

Within 20 working days from the date of receipt of valid documents, the Department of Labor, War Invalids and Social Affairs verifies and submits to the Chairman of the Provincial People’s Committee for issuance of the license.

Step 5: Decision to issue a license

The Chairman of the Provincial People’s Committee has 07 working days to consider and issue the license. In case the license is not granted, there will be a written response with the reason for not granting it.

Note: Cases where a license is not issued

  • Not ensuring the conditions prescribed in Article 21 of this Decree.
  • Using fake licenses.
  • The legal representative has been the representative of the business whose license was revoked in the last 5 years.

Consulting services for establishing a labor supply company in Long Phan

The process of establishing a labor supply company can face many difficulties in terms of procedures and documents. However, when you choose consulting and support services from Long Phan, we will help you complete this process quickly, accurately and effectively.

Services related to establishing a labor supply company in Long Phan include:

  • Consulting on conditions for establishing a labor supply company;
  • Consulting and guidance on drafting documents to establish a labor supply company;
  • Instructions on the order and procedures for establishing a labor supply company;
  • Consulting on conditions for applying for a labor subleasing license;
  • Consulting and guidance on preparing documents and procedures for applying for a labor sublease license;
  • Representing customers to apply for a company establishment license and labor sublease license;
  • Consulting on tasks that need to be done after establishing a company;
  • Consulting and answering other issues related to labor supply companies.

With a team of experienced experts, Long Phan will accompany you throughout the process of establishing a labor supply company, helping you overcome administrative procedures and achieve quick results. If you are looking for professional and effective support, do not hesitate to contact us via the hotline: 0906735386 for the most complete advice and guidance.