The Ministry of Finance recently sent a document to the Ministry of Planning and Investment for their comments on the draft decree on enterprise registration.

Illustrative photo. Source : Internet

64.61% of enterprises no longer operate at registered address

In this document, the Ministry of Finance raised shortcomings in the operation of private enterprises after establishment registration.

In 2019, the country had more than 77,000 private enterprises that terminated their operations. Nearly 50,000 enterprises do not operate at their registered addresses, accounting for 64.61%.

The common violations of these enterprises are not declaring tax, not finalizing tax, not settling invoices, owing taxes, and establishing "bogus” enterprises to buy and sell invoices for tax profiteering and smuggling.

After the tax agency issues a notice that the enterprises do not operate at their registered address, these enterprises will carry out procedures to changeenterprises registration information at the business registration office, to register for the suspension of operation or change the legal representative to establish a new enterprise. Although post-inspection is conducted, consequences occurred and cannot be settled.

Therefore, the Ministry of Finance proposed the Ministry of Planning and Investment add a mechanism in the draft decree for the business registration office have sanctions.

Commenting on the content, the Ministry of Finance stated: “When receiving and processing applications of enterprise registration, information change or suspension of operation, the business registration office shall base on the information on the legal status of an enterprise that is not operating at the registered address, to require the enterprise to make report and handle it according to the provisions of the Enterprise Law”.

Nowadays, the proportion of enterprises that do not operate at registered addresses is high and tends to increase. Therefore, it is necessary to add sanctions to restrict the "rights” for enterprises notified by the tax agency of not operating at the registered addresses to fulfill tax obligations before registering, notifying the change of enterprise information.

In this case, the enterprise must consult the tax office before registering for an information change

A new policy on business registration is approved

The Ministry of Finance also proposed adding some mandatory information of the representative and email address for the tax agency to send information and documents after finishing the business registration, including the address contact, phone number of legal representative, email address and address of head office of the enterprise with complete information about house number, alley/village/hamlet/ group; wards/towns; district; province/city.

Regarding this issue, the Ministry of Finance said at present, many enterprises do not declare information on the phone number of the representative and do not register the address clearly when registering enterprises establishment.

The above information is added to protect the interests of the enterprise, to avoid the case that authorities cannot contact the enterprise due to failure in finding the head office of the legal representative and notify that the enterprise does not operate at the registered address.

The applicant only performs services at the time of submission and has no rights and obligations related to the operation of the enterprise after submitting the application.

In addition, the Ministry of Finance also noted the abuse of the name of "betting business" code.

In the past time, there have been cases where an enterprise abuses the name of “betting business code” to register a business while in fact the State management agency has not licensed the betting business, to call for capital contribution and share purchase from domestic and foreign investors.

Therefore, according to the Ministry of Finance, for the registration of conditional business lines under the approval of the Prime Minister, the enterprise only is allowed to register for these lines after obtaining the Prime Minister's approval of the investment policy, including business objectives of these lines.