Question
Our company, with 100% investment from the Netherlands, is currently operating in Ho Chi Minh City. We are planning to expand our business activities in the field of providing employment services and payroll calculation. May I ask if we can expand the scope of business activities as mentioned above?
Answer:
Regarding the two business industries your company wants to supplement, the following considerations should be noted and weighed:
Firstly, regarding payroll services: This is a business activity that currently lacks specific regulations within Vietnam's industry classification system and international commitments of which Vietnam is a member. However, this activity could be categorized under similar industries that the company may consider registering, such as:
- Accounting: This is a business sector with complex conditions.
- Management consulting or Data processing services: These are sectors with commitments under international conventions and are business activities without specific conditions.
Secondly, regarding employment services: Although this sector is not committed to in international conventions, based on SB Law's practical experience, licensing authorities have historically approved foreign investors to register in this field after evaluating the feasibility of business operations through several factors, including:
- The parent company is an organization providing employment services abroad.
- The financial capability of the company to implement employment services activities.
- The company is willing to meet the conditions for applying for an employment services business license under Vietnamese law, such as:
(i) Having a headquarters located in the company's ownership or leased for at least 03 years;
(ii) Depositing capital of 300,000,000 Vietnamese dong; and
(iii) Meeting requirements regarding the qualifications and work experience of the legal representative.
Therefore, expanding the scope of business activities of the company in providing job placement and payroll services is feasible. However, it is crucial for the company to comply with specific regulations and conditions according to Vietnamese law, as well as to meet factors such as financial capability and qualifications of the legal representative. To achieve the desired expansion, the company must fulfill certain specified conditions. We hope that the company will make appropriate decisions to ensure that the expansion of business operations occurs smoothly and effectively.
