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Supporting SMEs converted from business households and start-up businesses

6 September 2017

VGP

VGP - The National Assembly passed Law No. 04/2017/QH14 on supporting small and medium sized enterprises (SMEs).

Question: What are regulations on supporting SMEs converted from business households and start-up businesses?

Answer: The Law regulates supports for SMEs converted from business households, start-up businesses to join industrial clusters and value chain.

*SMEs converted from business households and having operated continuously for at least one year and will be entitled to the following support:

- Exempt from business registration fees and fees for initial business information provision; exempt for license fees for the first 3 years;

- Free consultation and guidance on tax-related administrative procedures and accounting regimes for the first 3 years;

- Definite exemption and reduction of corporate income tax and land use fees as prescribed by the law on land.

* SMEs as the start-up business which have operated for not more than 5 years and conducted no initial public offering will be entitled to the following support:

- Application and transfer of technology; equipment at technical premises; participation in nurturing facilities, common workplace areas; guidance on testing and completing new products, fresh services and business models;

- In-depth education and training on building and developing products; attracting investments; advice on intellectual property;

- From time to time, the Government will decide the subsidy policy with regards to compensating the interest rate spread due to loans to SMEs as start-up businesses. The compensation of interest rate spread will be carried out through credit institutions.

The law on supporting SMEs will take effect as from January 1, 2018.

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