Establishing a company is an important step in entrepreneurship and business development. However, many people still wonder whether a degree or professional certificate is necessary to open a company. LawFirm.Vn will provide detailed answers to this issue in the following article.
1. Is a Degree or Professional Certificate Required to Establish a Company?
According to the Law on Enterprises of Vietnam 2020 registering the establishment of a company or enterprise does not require a degree or professional certificate. However, for the company or enterprise to commence operations, depending on the specific case, the individuals establishing the company or the company’s personnel must meet certain qualifications and requirements for professional certificates. This is a condition for the company or enterprise to be allowed to operate in accordance with legal regulations, typically for industries with conditional business activities.
Although starting a company does not require a degree, if you intend to operate in certain conditional industries, this may differ. These industries often require managers or employees to possess professional certificates or operational licenses. Typical examples include:
- Healthcare: Private clinics and hospitals require licenses for pharmaceutical and medical practice.
- Education: Educational institutions must have education operation licenses, and teachers must have teaching certificates.
- Legal: Law firms require lawyers to hold lawyer practice certificates.
- Construction: Certain projects and positions require construction practice certificates.
The list of conditional business investment sectors is stipulated in the Law on Investment of Vietnam 2020 (amended and supplemented) and other relevant legal documents.
2. Individuals Who Are Not Allowed to Establish a Company
According to Clause 2, Article 17 of the Law on Enterprises of Vietnam 2020, the following organizations and individuals are not permitted to establish and manage enterprises in Vietnam:
– State agencies and units of the People’s Armed Forces using state assets to establish enterprises for their own profit.
– Officials, civil servants, and public employees as defined by the Law on Officials and Civil Servants and the Law on Public Employees.
– Officers, non-commissioned officers, professional soldiers, workers, and public employees in agencies and units of the Vietnam People’s Army; professional officers, non-commissioned officers, and police workers in agencies and units of the Vietnam People’s Police, except for those designated as authorized representatives to manage state capital contributions in enterprises or manage state-owned enterprises.
– Leaders and professional managers in state-owned enterprises as specified in Point a, Clause 1, Article 88 of this Law, except for those designated as authorized representatives to manage state capital contributions in other enterprises.
– Minors; individuals with limited civil act capacity; individuals who have lost civil act capacity; individuals facing difficulties in awareness and self-control; organizations without legal personality.
– Individuals who are being prosecuted, detained, serving prison sentences, undergoing administrative penalties at compulsory rehabilitation centers, compulsory education facilities, or individuals who are prohibited by the court from holding certain positions, practicing certain professions, or performing specific tasks; and other cases as stipulated by the Bankruptcy Law and the Anti-Corruption Law.
If the Business Registration Authority requires it, individuals registering to establish a business must submit a criminal record certificate to the Business Registration Authority.
– Organizations that are commercial legal entities prohibited from doing business or restricted from operating in certain fields as stipulated by the Criminal Code of Vietnam.
These individuals, regardless of possessing the necessary qualifications and meeting business conditions, do not have the right to establish and manage enterprises in Vietnam.
3. Process and Procedures for Registering a Company or Enterprise
The basic process and procedures for registering a company or enterprise consist of three steps: (i) Checking the conditions for business registration; (ii) Submitting the application and receiving the results of the company or enterprise registration; and (iii) Announcing the content of the business registration.
- Checking the Conditions for Business Registration: Before registering the establishment of a company or enterprise, the founders need to verify the prerequisites for submitting the business registration application, including:
- The entities establishing and managing the company or enterprise.
- The type of business registration.
- The name of the company/enterprise.
- The address of the head office.
- Charter capital.
- Business sectors.
- Submitting the Application and Receiving the Results of Company or Enterprise Registration
- Announcing the Content of the Business Registration
