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Because of Vietnam's diverse and convenient infrastructure and transportation system, logistics has always been an industry with significant development steps since its beginning. Businesses must meet specific standards and follow the business establishment process in order to legally do business in this industry:

Legal basis:

- Law on Enterprises No. 59/2020/QH14;

- Decree No. 163/2017/ND-CP on provision of logicstic services;

- Decree No. 01/2021/ND-CP on enterprises registration.

1. Logistics service business conditions

- For Vietnamese businesses:

+ If a domestic company intends to provide one or more of the above-mentioned logistics services, it must meet the legal investment and commercial requirements for that service.

+ Enterprises that perform part or all of their logistical business using electronic means connected to the Internet, mobile telecommunications networks, or other open networks must also follow e-commerce legislation.

- For international investors:

Foreign investors must comply with the same restrictions as Vietnamese firms while providing logistical services, according to Vietnamese legislation. Foreign investors must also ensure that there are other required criteria, as specified in Clause 3, Article 4 of Decree No. 163/2017/ND-CP, such as:

+ Foreign investors are allowed to start enterprises or contribute capital, buy shares, and make capital contributions in container handling services that are part of services supporting all modes of transportation, except services offered at airports, where the capital contribution ratio of foreign investors does not exceed 50%.

+ They are authorized to start up an enterprise or contribute capital, purchase shares or contributed capital in an entity, including capital provided by domestic investors, if they are dealing in customs clearance services under sea transport support services. In the form of a business collaboration contract, foreign investors are permitted to establish a commercial presence in Vietnam....

2. The stages to create a logistics firm in Vietnam

Traders that meet the above criteria are eligible to register for the establishment of a logistics service company in the following sequence and procedures:

Step 1: Fill out the application for the foundation of a logistics firm on the Department of Planning and Investment's form, which includes the following information:

- A form for registering a business;

- A logistics service company's charter;

- A list of the firm's members or shareholders (whether it's a limited liability company or a joint stock corporation with two or more members);

- A genuine duplicate of one of the validated documents;

- Individuals must have a valid ID card or passport;

- A decision on the establishment of a business or a certificate of business registration. Alternatively, any other document that is comparable. One of the authorized representative's personal identification papers (Vietnamese citizen: citizen identification card, valid ID card, foreigner: valid passport). And, if the company's creator is an organization, the corresponding power of attorney;

Step 2: Make a public announcement about your company's registration.

Information regarding the company's registered business lines is included in the contents of the business registration certificate. On the national business registration portal.

- In order to comply with legislation, businesses must carry out procedures to publicize the contents of their business registrations. The goal is to stay away from administrative fines.

The following topics will be discussed: Business lines. For joint-stock firms, there is also a list of founding shareholders and stockholders who are foreign investors.

- Businesses must post the contents of their business registrations on the national electronic portal. Within 30 days, at the most. From the time the business registration license is obtained and all costs are paid in full.

Step 3: Engrave the seal and proclaim the business's seal sample.

The law dictates that seal engraving be done in a legal manner. Following its establishment, a company must go through the steps necessary to apply for a business license. Logistics services provided by businesses are subject to certain conditions in some business areas. The enterprise will announce the seal sample after successfully inserting and engraving the seal. Make a national online portal announcement.

Step 4: Apply for a business license to start a logistics firm.

On the list of conditional business lines, there are business codes for organizations that provide logistics services. A license must be obtained prior to the start of the business.

The above information is about the "Establishing a logicstic company in Viet Nam". For more information and advice on this issue, please contact Doanh Tri Law Firm directly via:

Hotline: (+84) 911.233.955 - (024) 6293 8326

Email: luatdoanhtri@gmail.com

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