Conditions for establishing an export processing enterprise in Vietnam

Export processing enterprises increasingly play a key role in the development of all countries and territories in the world. However, in order to manage this promising type of business, if you want to establish an export processing enterprise, you will have to meet certain conditions. LSX Lawfirm will give you an article about: “Conditions for establishing an export processing enterprise in Vietnam”, as follows:

Mục Lục

Legal grounds

Decree 82/2018/ND-CP dated 22/05/2018

What is an export processing enterprise?

So, export Processing Enterprise through the English word abbreviated as EPE Enterprise (Full English name is Export Processing Enterprise). Pursuant to Clause 10, Article 2 of Decree 82/2018/ND-CP dated May 22, 2018 of the Government on management of industrial parks and economic zones:

“Export processing enterprise means an enterprise established and operating in an export processing zone; or an enterprise specializing in the production of products for export operating in an industrial park or economic zone.

So, export processing enterprises that are not located in export processing zones separated from the outside areas; according to regulations applicable to non-tariff zones in the law on import and export taxes.

It can also seen that this regulation is general and somewhat general; partly making the assessment of eligibility recognized as an export processing enterprise more difficult for enterprises that have needs; especially foreign investors, because they often not easily registered to operate in export processing zones.

Can Officers establish company in Vietnam?

Vietnamese procedures to establish Single-member LLC

Should you establish a Joint-stock or Multi-member LLC in Vietnam?

Conditions for establishing an export processing enterprise in Vietnam

Pursuant to Article 30 of Decree No. 82/2018/ND-CP, the conditions for establishing an export processing enterprise are specified as follows:

Firstly, the export processing enterprises separated from the ordinary ones by a system of fences and separate entrances.
Secondly, all manufactured goods 100% exported abroad.

Thirdly, export processing enterprises must ensure the inspection and supervision conditions of customs and functional agencies. Customs procedures, customs inspection and supervision for exported and imported goods of export processing zones; and export processing enterprises shall comply with the law on customs.
Then, there must be a written consent from the customs on the approval of the establishment of an export processing enterprise.
To purchase construction materials, stationery, food; foodstuffs and consumer goods from inland Vietnam to build works; to serve the operation of the office apparatus and daily activities of officials and workers. work at the enterprise.

So, export processing enterprises, sellers to export processing enterprises may choose to carry out or not carry out export and import procedures for building materials, stationery, food; foodstuffs and consumer goods. from inland Vietnam.
Sold in the domestic market the liquidated assets of the enterprise.
So, Goods exchange relationship between export processing zones, export processing enterprises and other areas in the territory of Vietnam; not non-tariff zones, is an export and import relationship; except for the cases specified in Clause 1 of this Article. Clause 3, Article 30 of Decree No. 82/2018/ND-CP and cases where customs procedures not followed prescribed by the Ministry of Finance.

Conclude

It seen that, compared with ordinary enterprises; establishing an export processing enterprise requires more conditions, making it difficult for many investors to carry out the establishment procedures. However, besides the difficult conditions to establish; this type of business is still very attractive to investors because of the benefits that come with it.

Specifically, although the customs inspection of export processing enterprises is very strict; it is a very small price to pay for the exemptions and benefits they receive. The tax benefits and favorable policies for this business make them an extremely attractive solution for traditional manufacturing; and limited processing companies in the Vietnamese market.

Related questions

Validity of protection title in Vietnam?

The trademark protection title valid from the date of issue to the end of 10 years from the filing date. When it expires, the owner can extend it further, without limiting the number of extensions.

Conditions for establishing a single-member LLC

Firstly, Business Name: The company name must include two parts in order: Type of business + Name. Specifically, for a single-member limited liability company: “limited liability company / limited company + company name”. Firms must choose the names written by the letters of the Vietnamese alphabet, letters F, J, Z, W, numbers, and symbols.
Head office: The head office of the enterprise must locate in the Vietnamese territory. It is the contact address of the business and is identified by administrative boundaries. In addition, phone number (required); fax number, and email address (if any).
Owner: The owner of a single-member limited liability company may be an individual or an organization. However, such individual or organization must have full capacity for civil acts and not prohibited by the State from establishing or joining an enterprise.
Also, Business line: enterprises are only allowed to register their business within the scope of business lines which are not prohibited by law. However, for conditional business lines, enterprises must have practice certificates and related legal papers.
Lastly, Charter capital: The capital to establish an enterprise must be suitable to the business line and scale of the enterprise. For enterprises with business lines requiring legal capital, the charter capital must not be lower than the legal capital.

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