Ministry of Finance proposes to slash business costs

VNA
Household businesses may be exempted from paying fees for enterprise registration and first-time provision of information needed to become an enterprise.

Vietnam has nearly five million household businesses which contribute about 30 percent of the country’s gross domestic product (GDP). Fee exemptions for enterprise registration are expected to reduce business operating costs. (Photo: luatvietphong.vn)

Vietnam has nearly five million household businesses which contribute about 30 percent of the country’s gross domestic product (GDP). Fee exemptions for enterprise registration are expected to reduce business operating costs. (Photo: luatvietphong.vn)

The Ministry of Finance (MoF) has completed a draft circular on the amount, collection, payment, management and use of fees for information provision about enterprises and enterprise registration.

Vietnam has nearly 5 million household businesses which contribute about 30 percent of the country’s gross domestic product (GDP), according to the Vietnam Chamber of Commerce and Industry (VCCI).

While the Government is building a support policy for small- and medium-sized enterprises, VCCI Chairman Vu Tien Loc said the current legal framework does not guarantee equality for household businesses or encourage them to turn into enterprises.

In the draft, the finance ministry has proposed halving the fee for enterprise registration from VND100,000 (US$4.30) to VND50,000.

Charges for business registration include new establishment, amendments to enterprise registration, reissuance of enterprise registration certificate, and operation registration certificate for branches, representative offices and business location.

The fee for providing content for enterprise registration has also been proposed to be reduced to VND300 from VND100,000 each time.

In addition, the draft proposes exempting fees for amendments to business registration resulting from adjustment to administrative boundaries and business registrations via electronic network.

The reductions are expected to support businesses' operations.

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