A two square meter company office on the 6th floor of Master Building,
41-43 Tran Cao Van, Ward 6, District 3 in HCMC.
VietNamNet Bridge – Authorities in Ho Chi Minh City are unable
to manage bogus companies that have been registered a long time back, but now
do not operate at all.
According to statistics, HCMC
currently has 148,299 licensed companies, of which seventy percent are medium
or small scale and operate as private, joint stock, or limited companies.
More than 50,000 of the above
companies only exist on paper. Authorities have no knowledge of their location
or modus operandi.
According to the People’s
Committee in District 3, they have 5,000 companies listed but can manage only
2,800, which are registered at the tax department and regularly make updates.
Thousands of companies have been
established in the last several years, only for the purpose of showing the
financial status of the owners so that their children can study abroad. These
companies still exist to date, because the owners do not have time to complete
death declaration procedures.
The People’s Committee in
District 12 said that they have licensed nearly 8,000 businesses last year, but
only half of them are operating at present.
According to regulations,
businesses must inform authorized organs for adjusting licenses or for new
licenses when they change address or open branches. However, only few follow
these procedures. This has caused much difficulty for the local administration.
The People’s Committee in
District 1 said that they can only manage one third of the 10,000 businesses
that have been licensed. Earlier, businesses must register at the people’s
committees of wards or communes where they are located. Now this regulation has
been done away with.
Vo Khac Thai, deputy chairman of
the People’s Committee in District 3, said that they can inspect a maximum of
250 companies a year or 20 a month.
Before inspection, they have to
establish a team including members from the district Department of Tax,
Department of Economics, Finance and Planning and people’s committees in wards.
The inspection date must be
informed to businesses three days in advance. This is not easy because it usually
takes a lot of time to find addresses of businesses to send them necessary
documents.
Sometimes officials have to visit
three to four times but cannot meet representatives of companies because they
close their doors on them.
Mr. Thai said that district
authorities are not permitted to revoke licenses of these businesses and can
only issue a maximum fine of VND1 million.
Bogus offices
Introduced by a tourist company,
Saigon Giai Phong reporters arrived at the headquarter of May Trang Trade,
Service and Tourism Company, located on the 6th floor in Master Building, 41-43
Tran Cao Van, Ward 6, District 3.
The building management cannot
remember names and numbers of companies that have registered so far, because
the information changes every day.
A staff there gave the reporters
business cards of her company, called Professional Service Office Consultancy
Corporation (PSO), which hires out space and address.
The PSO space is nearly 100
square meters, which they hire from the building owner and let it out to other
businesses.
PSO now lets the space out to
more than 300 companies. Those just hiring the address pay VND550,000 a month.
Those wanting their names to appear on the board of PSO will pay VND990,000 a
month.
They will pay VND1,430,000 a
month to PSO to display their names together with telephone and fax numbers;
and VND1,870,000 a month for the above services, in addition to a phone
receptionist.
Companies can also have a two
square meter office for VND4 million a month.
Some businesses visit their
offices a couple of times a month while most do that only once a month and then
never return.
Source: SGGP
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