Circular No. 7-TMDL/QLTT guiding the implementation of Decree No. 66/HĐBT dated March 2, 1992 of the Council of Ministers in the field of trade and services.

CIRCULAR

Guidelines for implementing Decree No. 66/HĐBT

dated March 2, 1992, of the Council of Ministers in the field of commerce and services.

 

On March 2, 1992, the Council of Ministers issued Decree No. 66/HĐBT on individuals and groups engaged in business with capital lower than the statutory capital stipulated in Decree No. 221/HĐBT dated July 23, 1991. Based on Article 21 of Decree No. 66/HĐBT, the Ministry of Commerce and Tourism provides guidance on implementation in the field of commerce and services as follows:

 

I. ON THE SCOPE AND SUBJECTS OF APPLICATION

1. Commerce and service activities within the scope of application of Decree No. 66/HĐBT include trading activities and providing living services on the market, regardless of trading methods such as wholesale, retail, agency... fixed or mobile businesses and duration of operation.

2. The subjects of commerce and service activities within the scope of application of Decree No. 66/HĐBT are individuals and groups engaged in business with capital lower than the statutory capital prescribed for each trade of private enterprises in Items 16, 17, and 18 of the list attached to Decree No. 221/HĐBT dated July 23, 1991, of the Council of Ministers.

Specifically:

a) Individual commerce and service activities are business operations conducted by an individual who is the owner and bears full responsibility for all trading and service business activities. The individual conducting business must be directly involved in the business and be the subject in all business relations.

b) Group commerce and service activities consist of two or more individuals voluntarily pooling capital, skills, and expertise to open shops, stores, or business establishments for trading goods or providing services, jointly carrying out business activities, sharing profits, bearing risks together, fulfilling obligations and responsibilities towards the State and customers. In group business, ownership of assets remains that of each individual, with one person serving as the representative in all business relations of the group.

c) Business capital of individuals and groups engaged in commerce and service activities includes fixed capital (shops, stores, means of transportation...) and circulating capital used for business operations. The business capital is declared by the business operator and they are responsible for declaring capital consistent with the scale, goods, trade, and form and method of business. The business capital must be confirmed by the People's Committee of the commune or ward where the business operator resides. The authority issuing the business permit may conduct a review of the business capital before issuing the business permit if necessary.

3. Subjects of commerce and service activities not falling within the scope of application under Article 2 of Decree No. 66/HĐBT:

a) Households specializing in agricultural, forestry, and fisheries production with self-consumption characteristics, not regularly opening shops to sell products produced, not purchasing products for processing and selling processed products, and not engaging in trading goods or services outside the scope of agricultural-forestry-fisheries production.

b) Households engaged in family economy in the fields of production and production services, not regularly opening shops to sell or provide warranty services for products made by the household or engage in trading goods and other services on the market.

c) Street vendors, snack sellers, and low-income service providers are those who sell small items, snacks, or simple services and have income only at the minimum subsistence level for themselves, without savings to expand their business.

II- CONDITIONS FOR COMMERCE AND SERVICE BUSINESS

1. Individuals and groups engaged in business must meet the following conditions to operate commerce and service activities on the market according to Decree No. 66/HĐBT:

a) Be a Vietnamese citizen aged 18 or older with a registered permanent residence.

b) Have capital and means of business appropriate to the scale, trade, and goods being traded.

c) Have a shop, store, or definite place of business. The location and area of business must comply with state regulations on national security, public order, environmental hygiene, and sanitation management.

d) When engaging in trades, professions, or goods requiring conditions set by the State, then:

- Business operators in trades, professions, or goods requiring professional qualifications must hold certificates (or qualification certificates) issued by authorized vocational training institutions.

- Conditions regarding health, environmental hygiene, safety, and social order must be certified by specialized management agencies.

The list of trades, professions, and goods requiring conditions and the conditions for operating these goods and trades is attached to this Circular (Annex 2).

2. The following persons are not allowed to engage in commerce and service activities according to Decree No. 66-HĐBT:

a) Civil servants working in administrative state agencies, officers on active duty in armed forces; those holding positions in the machinery of government at various levels under the election system; managers working in state-owned enterprises.

b) Persons suffering from mental illness, infectious diseases, and those who are not in good health.

c) Persons currently detained, wanted, indicted, or deprived of the right to engage in business by a court decision.

d) Business operators whose business permits were revoked due to administrative penalties during the validity period of the penalty decision.

 

III. REGARDING APPLICATION FOR BUSINESS PERMITS AND ISSUANCE OF BUSINESS PERMITS

FOR COMMERCE AND SERVICES

1. For business operators

a) Must apply to the People's Committee of the district or city district where the business is located to obtain a business permit. Only after obtaining the business permit can the business operator commence business operations.

b) Business operators must submit an application for a business permit (according to the model specified in this Circular), accurately and fully completing all contents in the application, with confirmation from the People's Committee of the commune or ward where they reside regarding the contents declared in the application. If engaging in trades, professions, or goods requiring conditions mentioned in Point d1-II of this Circular, the application must be accompanied by a certificate of practice or a professional qualification certificate issued by the competent authority. If it is a group business, the application must be accompanied by a valid agreement among the participating individuals.

c) The direct business operator shall submit an application for business registration to the People's Committee of the district or county where the business is conducted (if it is a fixed and regular business) or to the People's Committee of the district or county where the business operator resides (if it is a mobile trading business).

The business operator may have the application received by the People's Committee of the commune or ward, market management board, which will then forward it to the People's Committee of the district or county for consideration and issuance of the business permit.

d) Business operators are entitled to choose their own industry, profession, goods (except those prohibited by the State - see Appendix 1), location, area, and duration of business operation in accordance with their own capabilities and relevant legal provisions. Each business operator can open one place of business within the district or county of the province or city where they have permanent residence. If conducting a fixed business in another province or city where they have registered their permanent residence, approval from the People's Committee of the province or city where the business is conducted must be obtained. For inter-provincial mobile trading, a certificate issued by the Department of Commerce and Tourism of the province or city where the business operator has permanent residence is required, followed by issuance of the business permit by the People's Committee of the district or county where the permanent residence is located.

Business operations must comply with the contents permitted in the business permit. Any changes to the business content, temporary suspension, or cessation of business activities must be reported and approved by the issuing authority. Only after obtaining permission can such changes, suspensions, or cessations be implemented.

2. Regarding state agencies

a) The Departments of Commerce and Tourism at provincial and municipal levels are responsible for assisting the People's Committees of provinces and cities in organizing, directing, and inspecting the implementation of business permit issuance; guiding and instructing district and county commercial agencies in managing the business activities of individuals and groups engaged in commerce and services under Decree 66-HĐBT. Issuing certificates of practice for business operators in industries, professions, and goods subject to conditions according to the authority of the Department. Summarizing the situation and reporting to the People's Committees of provinces and cities and the Ministry of Commerce and Tourism.

b) The People's Committee of the district or county is the competent authority to issue business permits for commerce and services for businesses under the scope of Decree 66-HĐBT, including:

- Individuals conducting fixed businesses within the managed areas of the district or county.

- Individuals conducting mobile businesses across counties and provinces with permanent residence in the district or county.

In highland, island communes, and rural communes with difficult access and far from the county office, the Provincial People's Committee may authorize the County People's Committee to delegate the Commune People's Committee to issue business permits for commerce and services for individuals operating fixed businesses in the commune where they have permanent residence. The following categories of individuals shall not be authorized by the County People's Committee to issue business permits by the Commune People's Committee:

- Mobile traders (itinerant traders)

- Small-scale border traders

- Border residents of neighboring countries conducting business

- Business operators with permanent residence in other counties, provinces, or cities. When granting permission to conduct business, the issuing authority bases its decision on the specified conditions and planning for the development of the network, industries, and goods in the area, considering the actual situation of the locality.

c) The Commercial Division of the Finance and Trade Office (or the Trade Office) is the specialized agency assisting the People's Committee of the district or county in issuing business permits for commerce and services in the area, with the responsibilities of:

- Guiding individual and group business operators to properly follow the State regulations in applying for business permits.

- Guiding, supporting, and supervising communes and wards authorized by the County People's Committee to issue business permits.

- Receiving applications for business permits from individual and group business operators.

- Reviewing, examining, and recommending to the People's Committee of the district or county regarding the issuance of business permits.

- Recording all contents in the business permit and submitting it for signature by the People's Committee.

- Registering the issuance of business permits in the record book.

- Collecting fees for issuing business permits as prescribed.

- Implementing inspection and supervision functions over business activities of business operators in the area.

- Cooperating with local tax authorities to manage tax collection.

- Summarizing the situation of business permit issuance and reporting to the People's Committee and higher-level commerce and tourism agencies.

d) The People's Committee of the commune or ward is responsible for:

- Confirming the application forms submitted by business operators with permanent residence in the commune or ward concerning matters within their jurisdiction.

- Supervising the business activities of business operators within the commune or ward according to the permitted contents and compliance with relevant laws during business operations.

3 - Duration of validity of the business permit

The duration of validity of the business permit for commerce and services is based on the period requested by the applicant, not necessarily limited to one year. However, the maximum duration allowed is five years from the date of issuance of the permit. When approving the duration of business, it is necessary to consider whether it is consistent with the certificate of practice and specific business conditions of the business operator (location, economic contracts) and the specific planning management of the locality.

Annual periodic inspections of business permits are organized.

4 - Each individual and group business operator is granted one business permit. The business permit clearly states the fixed business location or mobile business area (route, line), accurately listing the industry, profession, and commodity categories stipulated in this Circular (Appendix 3).

5 - The seals used for issuing business licenses for trade and services according to Decree 66-HĐBT shall be uniform throughout the country as prescribed by a model. Business licenses shall be issued according to the model prescribed and distributed by the Ministry of Justice. Other seals include: application forms for trade and service business licenses, agreements of business groups, receipts for business license application files, notifications from the People's Committee of districts and counties regarding non-issuance of business licenses, certificates from the People's Committee of districts and counties regarding temporary suspension or cessation of business operations, practice certificates, business license issuance ledgers for trade and services, and summary tables of business license issuance for trade and services according to the model prescribed by the Ministry of Trade and Tourism accompanying this Circular.

Provinces and cities shall organize the printing and distribution of seals (except for business licenses) in accordance with regulations to facilitate the issuance of business licenses for trade and services according to Decree 66-HĐBT at the local level. If a locality cannot print its own seals, it must report in writing to the Ministry for assistance in printing.

6 - The collection of fees for the examination and issuance of business licenses for trade and services shall follow the guidelines of the Ministry of Finance. In the absence of general guidelines from the Ministry of Finance, the People's Committees of provinces and cities shall temporarily set fee levels based on local conditions to ensure necessary costs for organizing the examination and issuance of business licenses.

IV. REGARDING THE ORGANIZATION AND IMPLEMENTATION OF BUSINESS LICENSE ISSUANCE

FOR COMMERCE AND SERVICES

Based on Decree 66-HĐBT and the guidance provided in this Circular, the Department of Trade and Tourism shall assist the People's Committees of provinces and cities in implementing the organization and execution of the examination and issuance of business licenses for trade and services within their jurisdictions, coordinating with relevant departments at the local level to widely publicize these requirements among the populace.

The implementation of Decree 66-HĐBT concerning trade and service business activities shall proceed as follows:

1 - Organizing the declaration and examination for business licenses for trade and services for all individuals engaged in business within the local area. Initially, priority should be given to examining new businesses, those with changes in business content, and those whose previous licenses have expired. For individuals currently operating under newly issued business licenses in early 1992, they may continue to operate under their old licenses while awaiting the issuance of new licenses according to Decree 66-HĐBT.

2 - Individuals who establish private enterprises with statutory capital shall be guided to complete procedures for establishing private enterprises according to the Law on Private Enterprises or companies according to the Law on Companies, without issuing business licenses according to Decree 66-HĐBT.

3 - Individuals currently operating under newly issued business licenses in early 1992 but failing to meet the conditions for business operations as stipulated in Decree 66-HĐBT and this Circular shall have their licenses revoked by the People's Committee of districts and counties, and be required to reorganize and adjust their operations to meet the necessary conditions, then apply for business licenses according to Decree 66-HĐBT before being allowed to continue business operations.

This Circular takes effect from the date of issuance and replaces previous documents issued by the Ministry of Trade and Tourism regarding the organization and implementation of registration for trade and service business activities. During the implementation of Decree 66-HĐBT, the People's Committees and Departments of Trade and Tourism of provinces and cities are requested to report back to the Ministry of Trade and Tourism on the progress and results of implementation.

ANNEX 1

LIST OF INDUSTRIES AND COMMODITIES

PROHIBITED FROM DOMESTIC MARKET

DOMESTIC FIELD

1 - Weapons, ammunition, military supplies, and military technical equipment (specific list published by the Ministry of Defense and the Ministry of Public Security) as defined in Article 95 of the Penal Code of the Socialist Republic of Vietnam and Decision 193-HĐBT dated December 23, 1989 of the Council of Ministers.

2 - Narcotics, as defined in Article 166 of the Penal Code and Decision 193-HĐBT.

3 - Explosives, foreign-made fireworks, flammable materials, toxic substances, radioactive materials, as defined in Article 96 of the Penal Code and Directive 374-CT dated October 26, 1990.

4 - Cultural relics, historical artifacts, and reactionary cultural items, pornographic items (specific list published by the Ministry of Culture, Information, and Sports) as defined in Article 99 of the Penal Code and Decision 193-HĐBT.

5 - Foreign-made cigarettes as defined in Directive 278-CT.

Note:

Special cases involving the use of industries and commodities listed in items 1 and 2 above for production or business purposes require a decision by the Chairman of the Council of Ministers.

 

ANNEX 2

LIST OF COMMODITIES AND INDUSTRIES WITH CONDITIONS FOR BUSINESS OPERATIONS AS PRESCRIBED BY THE MINISTRY OF TRADE AND TOURISM, APPLICABLE TO ENTITIES ENGAGED IN BUSINESS ACTIVITIES UNDER DECREE 66-HĐBT DATED MARCH 2, 1992

 

ANNEX 3

LIST OF TRADES AND INDUSTRIES

FOR COMMERCE AND SERVICES

(applicable in issuing business licenses

pursuant to Decree 66-HĐBT)

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

------------------------------------------------

M1-GPKD File number [-------------]

[-------------]

Application for Business License

1. Name of applicant male/female

2. Year of birth nationality

3. ID card number issued on date at

4. Place of permanent residence registration

5. Current address

Application for business license

6. Industry, product category:

7. Trade name, business establishment name (if applicable)

8. Form of business (fixed, mobile, wholesale)

9. Business method: (wholesale, retail, agency purchase, consignment sale;)

10. Place of business:

11. Total business capital: dong

Of which: - Fixed capital dong

- Working capital dong

12. Apply for business license from day...month...year 19...to day.../.../19

13. List of people participating in business clearly stating name, age, relationship with the business owner).

I hereby declare that the above information is true. If granted a business license, I will comply fully with all regulations of the State regarding business on the market.

Attached documents Date... month... year 19..

... applicant

... (signature)

1. Confirmation of the People's Committee of the ward, 2. Confirmation and recommendation of

commune where residing about the declaration People's Committee of the ward, commune or Management Board

above. of the local market where doing business

(If place of business differs from place

of permanent residence)

...Date..month...year 19…Date month...year 19...

(Signature, stamp) (Signature, stamp)

3. opinion after verification 2. opinion of the licensing authority

of the finance department trade permit

office of the district, county

...Date...month...year 19…Date...month...year 19...

(Signature, stamp) (Signature, stamp)

Receiving authority Socialist Republic of Vietnam

File Independence - Freedom - Happiness

----------- -------------------------------------

Number ... BN

Receipt

Received from Mr./Mrs. Permanent address: ...

Business License application file includes Business License application file includes

Total number of pages

We will notify you to return on day...month...year 19.. to be informed of the result.

Date...month...year 19

Person receiving

(Sign and write full name)

Business group Socialist Republic of Vietnam

…Independence - Freedom - Happiness

--------------------------------------------

Date ... month... year 19..

M3-GPKD

Agreement to establish a business group

We include:

(Clearly state the full name, age, occupation, address of each member in the group).

Establish a business group named:

by Mr./Mrs. as representative

Agree as follows:

1. Contributing capital for business: (clearly state the amount of capital contributed by each member)

2. Location of business at:

3. Industry, product category for business:

4. Jointly carry out business activities, share profits (or jointly bear risks, losses) in business. Jointly bear responsibility towards the State and customers as prescribed by law.

5. Distribution of profit and loss according to the following method: (share according to capital contribution; according to labor contribution...)

6. During the course of business:

a) External relations: (with customers, with government agencies...) characteristics of the group representing the group to handle relationships.

b) Internal relations within the group are resolved based on consensus. If agreement cannot be reached, relevant authorities will be sought to resolve.

Commitment to comply with the laws of the State in business

Full name, signature of members

Confirmation by People's Committee

ward, commune

(For members with household registration in

People's Committee of the Socialist Republic of Vietnam

the provincial level)

Department of Commerce and Tourism Independence - Freedom - Happiness

Hanoi, day...month...year 19...

----------- --------------------------------------------

M4-GPKD

Director of the Department of Commerce and Tourism of the province/city

Professional Certificate

Issued to Mr./Mrs.

Born in...Registered permanent residence at:

Professional certificate:

4. Loss

This certificate is a condition for obtaining a business license

Director of the Department of Commerce - Tourism

People's Committee of the district (county) Socialist Republic of Vietnam

(Signature and Seal)

Number: ------------------------------------------------

…Independence - Freedom - Happiness

Date...month...year 199...

M5-GPKD

Regarding issuance of business license

Notice

Dear Sir/Madam,

After reviewing your business application file number... dated..., the People's Committee of the district (county) does not approve issuance of a business license due to the following reasons:

Fax:

Therefore, please come to collect your business application file and return the receipt at the place where it was submitted. All business activities must cease, no later than 15 days from the date of this notification.

 

 

 

People's Committee of the district (county)

- Public Security Bureau of the district, county

Respectfully submitted to:

- Tax Office of the district, county

- Market Inspection Team

- People's Committee of the ward, commune

(for information and inspection)

People's Committee of the city, province.. Socialist Republic of Vietnam

 

District, county: Independence - Freedom - Happiness

M6-GPKD

--------------------------------------------

M5-GPKD

Permission to temporarily suspend or cease business

Certificate

People's Committee of the district, county

Certifies that Mr./Mrs....has a business license

CERTIFIES THAT MR./MRS.... HAS A BUSINESS LICENSE

number...issued on...month...year...is approved for

business operations from...month...year...to...month...year...

Mr./Mrs....is responsible for fulfilling the obligations of a business operator

Certifies that Mr./Mrs....has a business license

People's Committee of Province/City of the Socialist Republic of Vietnam

M6-GPKD

--------------------------------------------

M5-GPKD

Permission to temporarily suspend or cease business

Certificate

People's Committee of the district, county

Certifies that Mr./Mrs....has a business license

Certifies that Mr./Mrs....has a business license

number...issued on...month...year...is approved for

business operations from...month...year...to...month...year...

Mr./Mrs....is responsible for fulfilling the obligations of a business operator.

Certifies that Mr./Mrs....has a business license

People's Committee of District/County of the Socialist Republic of Vietnam

Province/City Independence - Freedom - Happiness

--------------------------------------------

M7-GPKD

Record book

business registration

 

 

 

 

³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ Reporting unit of the Socialist Republic of Vietnam

Receiving authority for reports Independence - Freedom - Happiness

-----------------------------------------------

M5-GPKD

M8-GPKD

Report

Situation of business licenses issued

up to this...month...year 199...

1. Number of households with business licenses in the previous year households

2. Number of households with business licenses in the reporting year: households

Of which: a) In urban areas households

b) In rural areas households

3. Number of workers

Of which: a) Family workers people

b) Outsourced workers people

4. Total business capital: dong

Of which: a) Working capital dong

b) Fixed capital dong

5. Classification of households by capital level

a) Number of households with capital under 2.5 million dong households

b) Number of households with capital 2.5 - million dong households

c) Number of households with capital over 5 million dong households

6. Classification of households by business methods

a) Production and processing business households

b) Wholesale business households

+ Among which: itinerant wholesale

c) Retail business households

d) Wholesale and retail combined business households

e) Catering business households

g) Service business households

7. Number of households conducting business without a license

Head of the unit

(signature, stamp)

Instructions for filling out the form

(Issued together with Circular number...date)

1. Form number 1 business license

- Year of birth or age of the applicant for business license.

- Industry or product:

+ If engaging in production: specify clearly what products are being produced.

+ If engaging in trade or service: specify clearly the products or groups of products applied for permission to operate according to Appendix number 3.

- Business form: strike out those parts that do not match the requested business form.

- Business method: strike out those parts that do not match the requested business method. If there are other forms and methods of business, strike out both lines and write the requested business form and method in the blank space.

- Fixed capital owned by the business operator, including factories, warehouses, counters, and business equipment used for business purposes.

- Working capital and personal capital of the business operator, including cash and goods.

- List of workers: Clearly state the relationship with the head of the household: parents, spouse, children, and outsourced workers for the purpose of classifying outsourced workers or family workers.

- Section for confirmation:

1. If the place of business and place of residence are the same, only the People's Committee of the ward or commune where the business is located needs to confirm the accuracy of the declaration and the recommendation to issue or not issue a business license for the licensing authority to base its decision on.

2. In cases where the place of residence differs from the place of business, the People's Committee of the ward or commune where the residence is located only needs to confirm the identity (address, age...) of the business operator, and the People's Committee of the ward or commune or Market Management Board where the business operator wishes to apply for a business license should record their comments on the business activities and recommendations to issue or not issue a business license.

3. The Finance and Trade Department of the district or county, after reviewing or auditing (if necessary), records their recommendation to issue or not issue a business license. If not issuing, they must clearly state the specific reasons to submit to the People's Committee of the district or county.

2) Form number 2 Business License:

Used for staff receiving applications for business licenses. Note: the application file section includes...must list the main documents and the total number of pages must be accurate.

3. Form number 3 - Business License:

Agreement to establish a business group, serving as a guide for the minimum contents of an agreement under simple organizational conditions. Depending on the degree of organization, additional indicators agreed upon by the group can be added and the indicators listed in Form number 3 - Business License can be detailed.

4. Form number 4 - Business License:

Professional certificate issued to those engaged in itinerant inter-provincial trade and confirming compliance with the conditions for operating certain industries and products specified in Appendix 2, within the authority of the Ministry: The professional certificate is a condition for considering the issuance of a business license for products and industries requiring conditions. The professional certificate does not replace the business license.

5. Form number 5 - Business License:

When stating reasons for not issuing a business license, avoid vague statements.

Notification must include the number and be sent via official mail. In case of direct delivery, there must be a signature receipt. (Specify date, month, year).

6. Form number 6 - Business License:

If the business operator temporarily suspends operations for 30 days or more, fill in the blank after the phrase "Approved to suspend operations" with the start and end dates.

If the business operator requests permanent cessation of operations, fill in after the phrase "Approved to cease operations."

Cease operations from... Delete the line "until day, month, year" and revoke the business license.

7. Form number 7 - Business License:

Used to record the list and some key indicators of those who have been granted a business license.

Column B - Is the code on Form number 1 - Business License

Columns 6 and 7: If engaging in production, record: production and provide a detailed explanation (what products are being produced)? Record in column 7.

If engaging in trade: Record specifically according to the business license for wholesale, retail, wholesale and retail combined...and record the product or group of products in column 7.

If engaging in services, column 6 should record "service" and column 7 should record a detailed explanation, for example, "service repair motorcycles." "Service" is recorded in column 6, and "repair motorcycles" is recorded in column 7.

If engaging in catering, only record "catering" in column 6. Nothing needs to be recorded in column 7.

8. Form number 8 - Business License.

This form is used by district or county commerce authorities to compile and report to the provincial department of commerce and tourism (market management division) and the market management division uses it to compile and report to the Ministry of Commerce and Tourism.

Seven (7) indicators of this table are extracted from Form number 7 business license.

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