a sub-license

The procedure for obtaining a sub-license (“giấy phép con”) is a mandatory requirement to ensure that a business operates within the scope of its registered business lines. When filing the application for company incorporation with the Department of Planning and Investment, an enterprise may register for multiple business lines. However, in practice, in order to legally conduct business in certain fields, it must first obtain the relevant sub-licenses.

For example, a company engaging in the restaurant business must first obtain its Enterprise Registration Certificate, and then apply for a Certificate of Eligibility for Food Safety and Hygiene. In some cases, it would not be wrong to say that a sub-license may even be more crucial than the “parent license.”

Take, for instance, Company A, which operates in a conditional business sector that requires a Fire Safety and Prevention Certificate. Although the enterprise successfully obtained its Enterprise Registration Certificate (the first step), it could not complete the sub-license process (the next step) because its leased premises – a privately owned five-story house – did not meet fire safety standards. As a result, they had no choice but to relocate to a leased office in a commercial building that already had fire safety records and certifications in place. This resulted in considerable costs in terms of time, effort, and financial resources for the enterprise. Therefore, businesses should exercise utmost caution regarding this matter.

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