Procedures for establishing a commercial agency according to the law in Vietnam

1. What is a commercial agent?

According to the provisions of Article 166 of the 2005 Commercial Law, a commercial agency is understood as a commercial activity, whereby the principal and the agent agree that the agent on his/her own behalf buys and sells goods to the principal or provides the principal’s services to customers for remuneration.

2. The provisions of Vietnamese law on commercial agents

Pursuant to the provisions of Article 167 of the 2005 Commercial Law, the specific regulations on principals and agents are as follows:

– A principal is a trader who delivers goods to a selling agent or delivers money for the purchase of goods to a buying agent, or a trader who authorizes the performance of services for a service providing agent. service.

– An agent is a trader who receives goods to act as a selling agent, receives payment for goods to act as a purchasing agent or is an authorized party to provide services.

Regarding ownership rights in a commercial agency, the principal is the owner of the goods or money delivered to the agent (according to the provisions of Article 170 of the Commercial Law). 2005).

Pursuant to the provisions of Article 169 of the Commercial Law 2005, the specific forms of agency are as follows:

– Offtake agency is a form of agency in which the agent buys and sells a complete volume of goods or provides a complete service to the principal. agent.

– An exclusive agent is a form of agency in which in a certain geographical area the principal only assigns one agent to buy and sell one or several items or provide one or a certain number of services.

– A general agent for buying and selling goods and providing services is a form of agency in which the agent organizes a system of affiliated agents to carry out the purchase and sale of goods and provision of services. Providing services to the principal.

The general agent represents the affiliated agent system. Affiliated agents operate under the management of the general agent and on behalf of the general agent.

– Other forms of agency as agreed upon by the parties.

3. Procedures for establishing a commercial agency

As you stated above, if your party is planning to sign an agency contract with individuals in other places to sell tickets, in this case those individuals must register to establish a business household. 

The party receiving your ticket will register its business as a business household. Pursuant to the provisions of Article 87 of Decree 01/2021/ND-CP, business household registration is specifically regulated as follows:

– Business household registration is carried out at the district business registration authority where the business household’s headquarters is located.

– Business household registration documents include including:

+ Application for business household registration;

+ Personal legal documents for business household owners and household members registering business households in case household members register business households;

+ Copy of minutes of meeting of household members on establishing business households in case household members register households business;

+ Copy of the authorization document of a household member for a member to be the owner of a business household in case household members register a business household.

– When receiving the dossier, the district-level Business Registration Authority will give a Receipt and issue a Business Household Registration Certificate to the business household within 03 working days from the date of receipt of the valid dossier. In case the dossier is invalid, within 03 working days from the date of receipt of the dossier, the district business registration authority must notify the applicant or business household founder in writing. The notice must clearly state the reason and requests to amend and supplement documents (if any).

– If after 03 working days from the date of submitting the application for business household registration, the Business Household Registration Certificate is not received or the notice requesting amendments and supplements to the business household registration dossier is not received, then the founder of the business household or business household has the right to complain and denounce according to the provisions of law on complaints and denunciations. report.

– Periodically on the first working week of every month, the district-level Business Registration Authority sends a list of business households registered last month to the Tax Authority at the same level, the Business Registration Office and specialized management agencies at the provincial level.

 After the ticket seller registers the business, the two parties sign an agency contract according to the provisions of Article 168 of the 2005 Commercial Law on agency contracts as follows:“The agency contract must be made in writing or in another form with equivalent legal validity.”