Sub-licenses: What Your Business Must Obtain After Company Registration
Many businesses believe that once a company registration certificate is issued, they are legally allowed to operate without further procedures. In practice, this is a common misunderstanding. In Vietnam, numerous industries are subject to conditional business regulations, requiring enterprises to obtain additional permits, commonly referred to as sub-licenses, before commencing operations.
Failing to obtain the required sub-licenses can expose businesses to administrative penalties, suspension of operations, or even forced termination. Understanding sub-licensing requirements is therefore a crucial step in ensuring lawful and sustainable business activities.
What Are Sub-licenses?
Sub-licenses are specialized permits issued by competent authorities that allow businesses to operate in specific regulated sectors. These licenses are required after company establishment and are directly linked to the nature of the registered business activities.
Unlike the company registration certificate, which confirms the legal existence of an enterprise, sub-licenses confirm that the business meets industry-specific conditions related to safety, professional qualifications, facilities, or operational standards.
Industries Commonly Requiring Sub-licenses
Sub-licensing requirements vary depending on the business sector. Certain industries are strictly regulated due to their potential impact on public safety, health, or economic order.
- Education and training services
- Healthcare and medical services
- Food production and food and beverage services
- Logistics and transportation
- Import and export of regulated goods
- Trading in conditional products or services
Businesses operating in these sectors must obtain the appropriate sub-licenses before offering services or conducting commercial activities.
Common Risks of Operating Without Sub-licenses
Many enterprises unintentionally begin operations without realizing that sub-licenses are required. This oversight can lead to serious legal and financial consequences.
- Administrative fines imposed by regulatory authorities
- Suspension or shutdown of business operations
- Increased scrutiny during inspections
- Damage to business reputation and customer trust
- Delays in expansion or partnership opportunities
Early identification of licensing requirements helps businesses avoid these risks and maintain regulatory compliance.
The Sub-license Application Process
Obtaining a sub-license typically involves multiple steps, including legal assessment, document preparation, submission, and follow-up with regulatory authorities. Each license has specific conditions that must be met before approval is granted.
The application process may require businesses to demonstrate compliance with infrastructure standards, professional qualifications, internal procedures, or operational capacity. Incomplete or inaccurate documentation can result in delays or rejection.
Why Professional Legal Support Is Important
Navigating sub-licensing procedures can be complex, especially for businesses unfamiliar with regulatory frameworks. Legal advisory support helps ensure that licensing requirements are correctly identified and properly fulfilled.
A professional legal consultant can assist with assessing applicable regulations, preparing accurate application dossiers, communicating with authorities, and advising on post-licensing obligations. This support significantly reduces the risk of non-compliance.
Post-Licensing Compliance Obligations
Obtaining a sub-license does not conclude legal responsibilities. Businesses must comply with ongoing conditions to maintain license validity, such as reporting requirements, inspections, and operational standards.
Regular compliance reviews and legal monitoring help businesses remain aligned with regulatory changes and avoid unexpected enforcement actions.
Conclusion
Sub-licenses are a critical legal requirement for many businesses operating in Vietnam. Understanding and complying with sub-licensing obligations helps enterprises operate lawfully, reduce risks, and build long-term credibility.
Seeking professional legal guidance early in the business lifecycle allows companies to navigate licensing requirements efficiently and focus on sustainable growth.
Duc Phat Law – Supporting Businesses with Clear and Compliant Licensing Solutions.