Question:
Dear Lawyer, our company currently holds the following two documents:
- A Certificate of Business Registration for the office in Hanoi.
- A Certificate of Business Location Registration for the warehouse in Bac Ninh.
However, neither of these premises has a business name signboard displayed. The company would like to inquire about the following issues:
- Are businesses required under current laws to display their name signboard at the headquarters and/or business locations?
- If signboard design is necessary, what content must be included?
- Are there any other legal regulations concerning signboards?
- Will the company face administrative penalties if the signboard is not currently displayed?
Response:
SB Law would like to response as follow:
- Is it mandatory to display the company name signboard at the headquarters and/or business locations?
Pursuant to Article 37.4 of the Law on Enterprises 2020, the company name (signboard) must be displayed at the headquarters and business locations of the enterprise.
- Content to include on the company signboard:
Pursuant to Article 34 of the Law on Advertising 2012, the required content on a signboard includes:
a) The name of the direct supervisory authority (if applicable).
b) The name of the business establishment, as stated in the business registration certificate.
c) Address and contact number. - Other regulations concerning signboards:
- Color regulations for signboards:
Current laws do not impose restrictions on signboard colors, so the company is free to choose the color scheme for its signboards.
- Size requirements for signboards:
Pursuant to Article 34.3 of the Law on Advertising 2012, the size of the signboard must comply with the following:
a) For horizontal signboards: Maximum height is 2 meters, and length must not exceed the building's frontage width.
b) For vertical signboards: Maximum width is 1 meter, and maximum height is 4 meters but must not exceed the height of the building floor where the signboard is placed.
- Signboard placement location:
Pursuant to Article 34.4 of the Law on Advertising 2012, the placement of signboards must ensure the following: The signboard must not obstruct emergency escape routes or firefighting access. It must not encroach on sidewalks, roadways, or impact public traffic.
SB Law recommends positioning the signboard in a location that is easily identifiable.
- Adding the company logo to the signboard:
In addition to the mandatory content listed in Section 2, the company may include other information on the signboard, such as the tax code (business code) and logo. There are no legal restrictions on the proportion of information fields on a signboard, as long as the content remains clear and legible.
- Administrative penalties for not displaying a signboard:
- Administrative fines:
Pursuant to Article 52.2(c) of Decree 122/2021/ND-CP, the company may be subject to an administrative fine ranging from VND 20,000,000 to VND 30,000,000 for failing to display the company name at the headquarters or failing to display the names of branches, representative offices, or business locations at their respective premises.
- Remedial measures:
The company may be required to install the signboard displaying the business name at the headquarters and/or other locations as prescribed.
- Timeframe for penalty enforcement:
Pursuant to Article 6.1 of the Law on Handling Administrative Violations 2012, the time limit for handling administrative violations in this case is 1 year, calculated from the date the violation ends (for completed violations) or from the date the violation is detected (for ongoing violations).
Pursuant to Article 65 of the Law on Handling Administrative Violations 2012, competent authorities cannot issue administrative penalty decisions after the expiration of this time limit.
Conclusion:
SB Law recommends that the company promptly display the required signboards to avoid detection and subsequent administrative penalties.
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