Question:
Our company, a foreign-invested enterprise operating in the fashion retail sector, currently has a retail outlet in District 3, Ho Chi Minh City. We are planning to open a new retail outlet in a booth around 100m2 within a shopping mall in this area. Could you please advise on the steps required to proceed with this procedure?
Answer:
1. Conditions for establishing a retail outlet other than the first retail outlet
Based on the information provided by the client, according to the provisions of Decree 09/2018/ND-CP, in the case of opening an additional retail outlet in the fashion retail sector with an area of less than 500m² within a shopping mall, it is not required to undergo an Economic Needs Test (ENT).
Therefore, for the client to establish a retail outlet other than the first retail outlet, the following specific conditions must be met:
- Acquire a financial plan for setting up retail outlet.
- Incur no overdue tax in case the first retail outlet is established in Vietnam for at least 1 year.
- The location where the retail outlet is set up is conformable with the relevant planning in the relevant geographic market.
Moreover, your Company should pay attention to:
- The validity period of a license for the establishment of retail outlet shall be as long as the remaining duration of the investment registration certificate.
- In case of the absence of the certificate of investment registration certificate, the validity period of the license for the establishment of retail outlet shall be as long as the duration specified in the retail outlet documentation;
2. Documents
The client needs to prepare 02 sets of documents to apply for a license to set up retail outlet, including:
- An application form for license for setting up retail outlet.
- A representation including:
- The location setting up retail outlet.
- Business plan at retail outlet.
- Financial plan for setting up retail outlet.
- A document justifying that the enterprise incurs no overdue tax issued by the tax authority.
- Copies of the following documents:
- Enterprise registration certificate.
- Investment registration certificate for setting up the retail outlet (if any).
- Business license.
3. Procedure
The steps to carry out the licensing process are as follows:
Step 1: Submit 02 sets of applications in person, by post, or via the Internet (if available) to the licensing agency.
Within 03 working days from the date on which the application is received, the licensing agency shall verify it and request necessary modifications if it is inadequate or unsatisfactory.
Step 2: Within 10 working days from the date on which an adequate and satisfactory application is received, the licensing agency shall verify the conditions for setting up retail outlet than the first retail outlet.
- In case where conditions are met, the licensing agency shall provide explanation in writing.
- In case of fulfillment of conditions, the licensing agency shall forward the application and consultation with the Ministry of Industry and Trade and the managing Ministry.
Step 3: Within 07 working days from the date on which the application is received, the Ministry of Industry and Trade shall issue license for the establishment of retail outlet; if the application is refused, they shall provide an explanation in writing.
Step 4: Within 03 working days from the date on which a notification of acceptance issued by the Ministry of Industry and Trade is received, the licensing agency shall issue a license for the establishment of retail outlet. If the application is refused by the Ministry of Industry and Trade, the licensing agency shall provide an explanation in writing.
After completing the above procedures and receiving the license to establish a retail outlet other than the first outlet, you can then proceed to contact the shopping mall to finalize the opening of the retail outlet there.
