In the realm of business and corporate structures, subsidiaries play a vital role in expanding the reach and operations of parent companies. However, the question arises: Are subsidiaries of enterprises required to register industry codes the same as their parent enterprises? This query delves into the intricacies of corporate registration and the unique status of subsidiaries. In this discussion, we will explore the regulations and considerations surrounding industry codes for subsidiaries, shedding light on their significance in the business world.
Question:
Currently, my company’s branch is accounted for as a subsidiary of the parent company. The branch is preparing to produce medical masks for export. If the parent company has already registered the industry code for the production of medical masks, is it mandatory for the branch to register?
Answer:
Based on Article 44 of the Enterprise Law 2020, a branch is a dependent unit of an enterprise, with the task of performing all or part of the functions of the enterprise, including the function of representation by authorization. The business sector of the branch must correspond to the business sector of the enterprise. If the branch operates in the industry of producing medical masks (which is the industry of the managing company), the enterprise should consider initiating the process of changing the branch’s industry, which includes submitting Form II-13 – Circular 02/2019/TT-BKHĐT.
In the event that the applicant is not the legal representative, the application must be accompanied by a Power of Attorney for the applicant and a valid copy of the applicant’s identification card/identity card/passport.
Conclusion
In conclusion, the registration of industry codes for subsidiaries is a nuanced aspect of corporate governance. There may be cases where subsidiaries share industry codes with their parent enterprises. However, it’s not always a strict requirement. Understanding the specific regulations governing this matter is crucial for businesses. It helps them establish subsidiaries and navigate industry classifications. This knowledge empowers companies to operate efficiently within the legal framework. It also helps them seize growth opportunities in the dynamic business environment.
HMLF is always available to offer assistance in understanding the procedures with authorities.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
