ID numbers to be needed for business registration

VIETNAM, July 9 - HÀ NỘI — Personal identification (ID) numbers will be used to carry out business registration procedures, the Ministry of Planning and Investment (MPI) has proposed.

Under a revised decree on business registration drafted by the MPI, open for comments, the MPI explains if a person carrying out business registration procedures uses his/her personal ID number, the procedures will be streamlined as he/she will not have to declare personal information again.

Much of the information is already held on the national population database, so the time to perform administrative procedures can be shorter.

In particular, the regulation will prevent the act of falsifying records to illegally register the business establishment because personal information stored in the national population database is already verified by the Ministry of Public Security.

Previously, some individuals and organisations have taken advantage of the openness of the law to commit violations for the purpose of profiteering or evading responsibility, which have seriously affected the rights and legitimate interests of individuals, organisations and the State, besides distorting the business investment environment.

According to the MPI, the original decree dates from 2021, so needs updating to fit with a number of newly-issued laws. For example, the Law on Credit Institutions has different regulations on business registration for credit institutions and the Law on Cooperatives regulates business household registration.

The revised decree also aims to streamline lots of processes, creating maximum favourable conditions for enterprises, respecting the autonomy of enterprises and protecting the legitimate rights and interests of the company, members and shareholders, while still ensuring State management in business registration.

Representatives of the Business Registration Office, under the Hà Nội Department of Planning and Investment, welcomed the draft as it will mean moving a lot of operations online, currently, most of which remain in paper form.

Meanwhile, representatives of the Ministry of Justice proposed that the drafting committee strengthen post-inspection regulations, allow public comments and look at international experiences to simplify procedures and connect with relevant databases to suit the current context. — VNS