Company D in Long Hau Industrial Park, Long An is falling into a rather strange situation. After appointing Mr. T, a Singaporean, as director, this company registered a business electronic identity account on the VNeID system. But as soon as the data was entered, the system immediately reported an error: the legal representative is not qualified because he does not have a level 2 personal VNeID account. To have that account, a temporary residence card is required. So all procedures stalled just because... a card had not yet been processed.
So in case the foreign director does not have a temporary residence card, how will the enterprise electronically identify itself to avoid being caught up in administrative procedures?
According to new regulations, all businesses that want to transact with state agencies on digital platforms must have electronic identification through a VNeID account. However, the key point is that this registration must be done through a legal representative. Specifically:
The legal representative (director or chairman according to the business registration license) must own a level 2 personal VNeID account.
To open a level 2 account, the individual needs to have a citizen identification card (for Vietnamese) or a temporary/permanent residence card (for foreigners) that is still valid in Vietnam.
This puts many FDI enterprises in a difficult position. The newly appointed director has just entered the country and cannot open a personal VNeID account before applying for a temporary residence card. Without a personal account, you cannot register for a business account. The procedure is "suspended" indefinitely.
Business identification procedures are delayed when the business owner does not have a personal VNeID account [/caption]When a business appoints a foreign director, but has not yet completed the procedure for applying for a temporary residence card, the electronic identification registration immediately faces obstacles. This "stuck" situation not only affects administrative procedures, but can also disrupt internal operations, especially for FDI enterprises that need to regularly transact with state agencies through the digital environment. So while waiting for the temporary residence card, how should businesses handle it so as not to miss the plan? Below are two solutions that businesses can consider implementing in parallel or flexibly depending on the actual situation.
This is the fastest solution if businesses do not want to wait or slow down the processing of documents. Accordingly, the company can update the business registration information to add another legal representative - a Vietnamese citizen or a foreigner who already has a temporary residence card.
This person will register the electronic identity for the business on behalf of the official director.
However, businesses need to note:
The company charter must clearly stipulate the independent representative rights of each person.
Otherwise, when there are many representatives at the same time, every signed document or administrative procedure must be signed by both, causing difficulties later.
If the business wants to maintain its legal representation structure, the solution must be to quickly complete the application for a temporary residence card for the foreign director. Profile includes:
Original passport
3x4 photo (white background, no glasses)
Work permit or work permit exemption document
Business registration certificate and investment certificate (if any)
Application forms NA6 and NA8 (according to the form of the Immigration Department)
After being issued a card, the director can register for a level 2 personal VNeID account and thereby perform electronic identification for the business.
In reality, many businesses choose to combine both directions: adding a backup representative to promptly complete urgent procedures, and simultaneously submitting an application for a temporary residence card to the director.
Adding Vietnamese people as backup legal representatives is the fastest solution if businesses do not want to delay progress [/caption]How has DEDICA supported FDI enterprises?
As a regular legal partner of many foreign-invested enterprises, DEDICA has successfully resolved many similar cases. Among them, a typical example is enterprise D mentioned above.
As soon as receiving a request from a business, DEDICA advises on a dual strategy:
On the one hand, support the company in updating the Vietnamese backup legal representative who has an existing VNeID account.
On the other hand, prepare the application for a temporary residence card for the Singaporean director according to the latest form and instructions from the Immigration Department.
Not only that, DEDICA also accompanies businesses:
Draft and carefully review application form TK01 - registering a business identification account.
Instructions for collecting biometrics at police agencies.
Connect data between personal VNeID and business accounts to ensure information uniformity.
Result: within just 10 working days, enterprise D was able to use an electronic identity account to fully fulfill the obligations of declaration, digital signing, and electronic transactions with state agencies from customs, taxes to social insurance.
Foreign directors who do not have a temporary residence card not only affect their personal activities but can also cause the business to "congest" all digital administrative activities. However, if you understand the process correctly and have a reasonable legal strategy, businesses can completely turn the situation around quickly.
Are you in the process of appointing foreign directors?
Are you worried about not being able to register your business's electronic identity on time?
DEDICA is ready to accompany you - from strategic consulting, support for updating legal information to implementing a full package of identification documents.
Hotline:(+84) 39 969 0012 (Support via WhatsApp, WeChat and Zalo)
Head office:144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, City. Ho Chi Minh
Business hours: Monday – Friday (8:30 – 18:00)
Contact us now to receive a free initial consultation from our team of professional lawyers!
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