Small businesses in Vietnam often face many legal challenges during their operations.The legal mistakes that small businesses make can lead to financial risks, legal disputes, and even bankruptcy.This article will analyze the 5 common legal mistakes small businesses encounter in 2025, from contracts, taxes, to labor, while also providing effective solutions to avoid them.
1. Business Legal Mistake: Not Signing a Clear Contract
Not signing contracts or signing unclear contracts is one of the most common legal mistakes made by small businesses. Many businesses, especially startups, often rely on verbal agreements or rudimentary contracts, leading to disputes when conflicts arise.
|
Solution |
Benefits |
|---|---|
|
Draft a detailed contract |
Ensure clear rights and obligations, reduce disputes. |
|
Please have the lawyer check. |
Comply with the law, avoid legal risks. |
|
Store the contract carefully. |
Easy to compare in case of a dispute. |
2. Violation of Tax Regulations
Tax violations are a common legal mistake for small businesses in 2025. Common mistakes include: failing to file taxes on time, not paying business license tax, or not understanding value-added tax (VAT) regulations.
Example: A small business in Hanoi did not pay the business license tax in the first year, was fined 5 million VND, and was listed as a tax risk (according to Article 5, Decree 125/2020/ND-CP).
Data: According to the Vietnam Tax Department, in 2024, about 55% of small businesses were fined for tax violations, mainly due to a lack of legal knowledge.
-
Understand tax regulations: Learn about various taxes such as business license tax, corporate income tax, and VAT through the Vietnam Tax Department’s Portal.
-
Use accounting services: Hire a professional accountant to ensure compliance with regulations.
-
Track tax deadlines: Use tax management software to avoid missing deadlines.
-
Take advantage of the 2025 tax incentives: Small enterprises in the technology and clean agriculture sectors are exempt from 100% of corporate income tax in the first year (Decree 02/2025/ND-CP).
3. Non-Compliance with Labour Regulations
Not complying with labour regulations is a legal mistake that small businesses can easily make. Common mistakes: not signing labour contracts, not paying social insurance, or not paying salaries on time.
Example: A small business in Da Nang did not pay social insurance for its employees for 6 months, was fined 20 million VND, and had to compensate the employees (according to Article 138, Labour Code 2019).
-
Sign the employment contract legally: Comply with Article 15 of the 2019 Labour Code, ensuring terms regarding salary, working hours, and employee benefits.
-
Pay full insurance: Register for social insurance, health insurance, and unemployment insurance on time.
-
Update on labour regulations: The regional minimum wage for 2025 has increased, for example: Region I is 4,960,000 VND/month (Decree 123/2024/ND-CP).
-
Build clear HR policies: Internal regulations on salary, bonuses, and leave to avoid disputes.
See more: How to legally establish a business in Vietnam 2025
4. Skip Intellectual Property Registration
Many small businesses do not register intellectual property, leading to brand copying or loss of ownership.
Successful remediation example: A coffee shop in Nha Trang registered its trademark with the Intellectual Property Office, successfully sued a chain for logo imitation, and received 300 million VND in compensation.
-
Register the trademark from the beginning: Submit the application to the Vietnam Intellectual Property Office.
-
Protecting inventions and copyrights: Register if the business has exclusive products or services.
-
Monitor violations: Use brand monitoring services to detect copying.
5. Non-compliance with Conditional Industry Regulations
Doing business in conditional industries without the necessary permits is a common legal mistake for small businesses.For example: selling food without a food safety hygiene certificate.
-
Check business sectors: Refer to the list of conditional business sectors in the 2020 Investment Law.
-
Apply for a sub-license: Ensure all licenses are complete before starting operations.
-
Consult an expert: Contact a lawyer for detailed advice.
Common legal mistakes small businesses make in 2025, such as not signing clear contracts, tax violations, labour non-compliance, neglecting intellectual property, and lacking sub-licenses, can have serious consequences.To avoid risks, businesses need to invest in legal consulting, comply with regulations, and stay updated with the latest laws.
Contact information:
Address: 38/26 Nguyễn Văn Trỗi, Ward 15, Phú Nhuận District, Ho Chi Minh City.
Hotline: 028.6650.4729
Email: info@hpg-tax.com
