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Experience in procedures for setting up a garment factory

Prepare the information before the procedure

First you choose the type to register to establish a company, there are 4 basic types including a private enterprise, a 1-member limited liability company, a liability company with 2 or more members, and a joint-stock company. Based on the actual situation and production and business needs, you choose the appropriate type of business.
Next you name your company, garment factory. The given name consists of 2 elements: type of company + Personal name. For example, Thanh Loi Co., Ltd., in which “Linh LTD” is the type of company and “Thanh Loi” is the proper name. Company name including Vietnamese name, foreign name, initials and name must not be duplicated with other existing companies.
Regarding the charter capital of the company, the garment processing industry is not in the group of industries with legal capital conditions, so when registering the business, it is not necessary to prove the capital source. You just need to register the charter capital and write it in the company’s charter. Charter capital is the capital contributed or committed to contribute by members and shareholders for a certain period of time, and then recorded in the company’s charter.
Charter capital affects the amount of license tax the business needs to pay every year: With a charter capital of over 10 billion VND, the license tax rate is 3 million VND/year, the charter capital is 10 billion VND or less, the license tax rate is approx. 2 million VND/year.
Regarding the registered business lines, each garment, printing or embroidery industry will have its own industry code. Specifically:
– Code 1321 is: Manufacture of crocheted fabrics, knitted fabrics and other nonwovens. Specifically, computerized embroidery.
– Sector code 1322 is: Manufacture of ready-made garments, excluding clothing, except for bleaching, dyeing, sizing, printing and not processing used goods, tanning and smelting rubber at the head office.
– Sector code 1329 is: Manufacture of other textile articles not elsewhere classified. However, except for bleaching, dyeing, sizing, printing on used fabrics, sewing, weaving, knitting or processing products.
– Sector code 1410 is: Sewing of clothing, except for clothing from fur, bleaching, dyeing, printing and not processing used goods, tanning and smelting rubber at the headquarters.
– Sector code 1420 is: Manufacture of fur products not operating at headquarters.
– Sector code 1430 is: Manufacture of knitted and crocheted garments, but excluding bleaching, dyeing, sizing, printing on products of yarn, weaving, sewing and knitting; processing used goods.
– Sector code 1512 is: Manufacture of bags, suitcases and the like, manufacture of padded saddles. Except for bleaching, dyeing, sizing, printing on textile products, weaving, sewing, knitting and processing used goods).
– Sector code 1520 is: Manufacture of footwear.
– Sector code 1811 is: Printing.
– Sector code 1812 is: Printing-related services.
– Sector code 4669 is: Other specialized wholesale not classified in certain heading. Specifically, wholesale accessories for garment and footwear industry, wholesale computer embroidery accessories.
– Sector code 4753 is: Retail sale of carpets, cushions, blankets, curtains, drapes, wall and floor covering materials in specialized stores.
– Sector code 4771 is: Retail sale of garments, leather goods, footwear and imitation leather in specialized stores.
– Sector code 4610 is: Agents, brokers, auctions, except for real estate brokers.
– Sector code 4641 is: Wholesale of fabrics, ready-made goods, shoes.
– Sector code 4649 is: Wholesale of other household appliances. Specifically, wholesale suitcases, bags, briefcases, wallets, belts, travel goods in leather, imitation leather and other materials. Wholesale of needlework including needles, sewing threads, zippers; wholesale umbrellas; wholesale knives and scissors.
– Sector code 4659 is: Sale of other machinery, equipment and spare parts. Specifically, wholesale computer-controlled machine tools; wholesales computer controlled machinery for the textile industry. Wholesale of machinery, equipment and spare parts used in the textile industry, including: motor vehicles, weaving machines, carding machines; wholesale of machinery, equipment and spare parts used in the sewing industry, including: fabric cutting machines, sewing machines, buttonhole machines, buttoning machines; wholesale of machinery, equipment and spare parts used in the leather and footwear industry; wholesales machines, equipment and spare parts for the textile, garment, leather and footwear industries controlled by computers.
– Sector code 4782 is: Retail sale of textiles, ready-made garments, mobile footwear or at markets.
– Sector code 7410 is: Specialized design activities. Specifically, fashion design involves textiles, apparel, shoes, jewelry and home decor, other fashion goods, and other personal and household goods.
– Sector code 7730 is: Rental of machinery, equipment and other tangible goods. Specifically, leasing machinery and equipment for the garment, printing and embroidery industries.
– In addition to the above occupations, you can register more industries that the garment factory, the company does business or plans to do business in the future.
Regarding the address of the head office of the company, the address must be determined including house number, alley, alley, street, hamlet, hamlet, hamlet, commune, ward, township, district, district, town and city under provinces, provinces and centrally run cities. And attached is the contact phone number, fax number, email.
But you should note that residential apartments are not allowed to set addresses for garment processing factories or companies to perform business functions.

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