VI For foreign-invested enterprises operating in the distribution sector, the License for Establishment of Retail Outlet is considered a legal passport that determines the existence of each business location. Due to its specific nature and strict regulations aimed at regulating the domestic retail market, this license is always restricted by a specific validity period. When this term is about to expire, investors must carry out the procedures for the renewal of the License for Establishment of Retail Outlet. The renewal process requires a thorough appraisal of tax obligations, actual operational status, and the investor’s current financial capacity. To assist enterprises in proactively planning and accurately completing their application files, thereby avoiding any disruption to the operational chain, let us join Pham Consult in clarifying the conditions and procedures for renewing the License for Establishment of Retail Outlet.
- Cases in which the License for Establishment of Retail Outlet is renewed
The License for Establishment of Retail Outlet is a legal document issued by a competent state authority to a foreign-invested economic organization to establish a retail establishment for conducting retail activities. A foreign-invested economic organization has the right to request the issuance of a License for Establishment of Retail Outlet after obtaining a Business License and documents regarding the location for setting up the retail establishment.
According to Article 26 of Decree No. 09/2018/ND-CP, the duration of the License for Establishment of Retail Outlet is one of the contents recorded on the License for Establishment of Retail Outlet. Accordingly, this License has a term corresponding to the remaining duration specified in the Investment Registration Certificate of the retail establishment project. In the absence of an Investment Registration Certificate, the duration of the License for Establishment of Retail Outlet shall correspond to the term stated in the documents regarding the location for setting up the retail establishment.
Based on the above regulations, it can be understood that the License for Establishment of Retail Outlet does not possess permanent validity but is always bound to a certain term. When this term is about to expire, if the foreign-invested economic organization still wishes to conduct retail activities, such foreign-invested economic organization must carry out the procedures to renew the License for Establishment of Retail Outlet.
- Application for the renewal of the License for Establishment of Retail Outlet
According to Article 36 of Decree No. 09/2018/ND-CP, an application file for the renewal of the License for Establishment of Retail Outlet comprises the following documents:
– An application form for the renewal of the License for Establishment of Retail Outlet;
+ An explanatory statement containing the following contents:
+ Location of the retail establishment: address of the retail establishment; description of the general, relevant areas, and the specific area used to set up the retail establishment; an explanation of compliance with the conditions prescribed in Point c, Clause 1, Article 22 of Decree No. 09/2018/ND-CP; enclosed with documents regarding the location of the retail establishment;
+ Business plan at the retail establishment: presentation of the business and market development plan; labor demand; evaluation of the socio-economic impacts and efficiency of the business plan;
+ Financial plan for setting up the retail establishment: a business performance report based on the audited financial statements of the latest year in case the enterprise has been established in Vietnam for 01 year or more; an explanation of capital, capital sources, and fundraising plans; enclosed with financial documents;
– Documents from the tax authority proving no overdue tax debt.
– Copies of the Enterprise Registration Certificate, the Investment Registration Certificate of the retail establishment project (if any), and the Business License.
Number of application sets: 01 set.
- Procedure for the renewal of the License for Establishment of Retail Outlet
According to the provisions of Article 37 of Decree No. 09/2018/ND-CP, the application file for the renewal of the License for Establishment of Retail Outlet should be submitted at least 30 days prior to the expiration date of the License for Establishment of Retail Outlet.
The foreign-invested economic organization shall submit 01 set of the application file for license renewal directly, by post, or online (if applicable) to the Licensing Authority.
Within 05 working days from the date of receipt of the application file, the Licensing Authority shall examine the file and request amendments or supplements if the application file is incomplete or invalid. In case the application file is complete and valid, the Licensing Authority shall renew the License for Establishment of Retail Outlet; in case of refusal, a written response clearly stating the reasons must be provided.
The renewed term of the License for Establishment of Retail Outlet shall correspond to the remaining duration specified in the Investment Registration Certificate of the retail establishment project. In the absence of an Investment Registration Certificate, the term of the License for Establishment of Retail Outlet shall correspond to the duration stated in the documents regarding the location for setting up the retail establishment.
