New businesses completing company registration procedures will have many issues to pay attention to, one of the important but easily overlooked factors is the regulations on company signs.
Let's start exploring these regulations with Expertis to ensure your business operates efficiently and does not encounter legal problems.
Discovered that some businesses had company signs incorrectly posted
Businesses do not have signs
Based on Article 31 of the Enterprise Law 2020, one of the mandatory requirements for businesses is to attach their name at important locations such as headquarters, branches and representative offices. Hanging company signs is an important part of expressing identity. However, it also shows that each business is fulfilling its obligations and responsibilities, affirming the business's position and reputation in the minds of customers and partners.
Businesses install signs incorrectly
First, according to the provisions of Article 18 of the Law on Advertising 2012, the use of foreign languages in advertising is not a serious problem, but it still must comply with some specific regulations.
Second, signs that are too small or located in hidden locations will make it difficult to observe. In addition, if the sign is too large it can be overwhelming and will become a potential hazard if placed in crowded places or in locations that block public traffic.
Businesses put up signs that lack company information
Hanging company signs with name and address, etc. along with prescribed information will help consumers easily recognize and access and distinguish products and services that each business provides.
TIn short, failure to comply with this requirement will be subject to administrative penalties according to the law. The fine can be quite heavy and affect the business operations of the enterprise, especially if violations are detected and strictly handled.
Penalties for violating regulations on company signs
According to Article 48 of Decree 38/2021/ND-CP, violations of regulations on signs will be punished depending on the level and nature of the behavior. Specifically:
Fines range from 5 million to 10 million VND: Applies to acts such as not displaying complete information on the sign (name of managing agency, name of production and business establishment, address and phone) or using a sign with an incorrect size. .
Fines range from 10 million to 15 million VND: Applies to acts such as incorrectly or incompletely recording names in Vietnamese on signs; only written in foreign languages without Vietnamese words; Show your personal name, abbreviated name, international transaction name in foreign language above the name in Vietnamese; or the height of the vertical sign exceeds the height of the floor where the sign is located.
Fines range from 15 million to 20 million VND: Applies to acts such as hanging, erecting, placing, and attaching signs to cover emergency and fire escape spaces; encroaching on sidewalks and roadways, affecting public transportation; or spoil the beauty.
In addition to fines, remedial measures are also applied, including being forced to remove violating signs or More serious is having your tax code locked.
It is important to note that according to Article 5 of Decree 38/2021/ND-CP, the maximum fine for an administrative violation can be up to 20 million VND for individuals and 40 million VND for individuals. organization. The application of fines also depends on the authority of the positions with sanctioning authority.
View more: Cases of locked tax codes and prevention of locked tax codes
Meets regulations on company signs
Location and size of signs
The location of the sign installation must not block emergency or fire escape spaces, and must not encroach on sidewalks or roadways, affecting public traffic.
Signs can only be written and placed close to the gate or front of the headquarters or place of business of an organization or individual. Each agency and organization may only place one sign at the gate. At headquarters or places of business independent of other organizations or individuals, only one horizontal sign and no more than two vertical signs may be placed.
For horizontal signs, the maximum height is 2 meters and the length must not exceed the width of the house facade.
For vertical signs, the maximum width is 1 meter and the maximum height is 4 meters, but must not exceed the height of the floor where the sign is located.
Aesthetics and sign writing
Name of direct managing agency (if any).
Full name in Vietnamese, consistent with the establishment decision or business registration certificate issued by a competent authority.
Type of business or cooperative.
Main business lines and fields (for establishments producing and trading goods and services).
Transaction address, phone number (if any).
The symbol (logo) has been registered with the competent authority, the logo area must not exceed 20% of the sign area, and must not display information or advertising images for any type of goods or services.
Use foreign languages to write signs
According to Clause 1 of Article 18 of the 2012 Advertising Law, signs can use foreign languages in the following cases:
- Trademarks, slogans, trademarks, and proper names in foreign languages or words that have been internationalized cannot be replaced in Vietnamese.
- Books, newspapers, websites and publications are allowed to be published in Vietnamese ethnic minority languages and foreign languages; radio and television programs in Vietnamese ethnic minority languages and foreign languages.
Although the Advertising Law 2012 has provided a legal framework for the use of foreign languages in advertising, implementing it is still not always easy. There may be arguments or misinterpretations that can lead to misunderstandings about the product or service.
It is important to ensure that the message on the sign is understandable and reflects the true nature of the product or service being offered.
Therefore, the management and use of language in advertising, especially when using foreign languages, requires careful consideration and a deep understanding of legal regulations.
Forms of signs
Writing, placing, hanging, pasting, erecting, installing signs at the headquarters or place of business of organizations and individuals in the form of boards, signs, light boxes, neon light systems or other shapes. Other forms to introduce the names and transaction addresses of Vietnamese organizations and individuals, foreign organizations and individuals in Vietnam do not require permission but must comply with the provisions of Article 23 - Decree 103/2009/ND-CP.
Write and place signs
The name of the governing agency directly written on the sign is the superior agency that directly decides on the organization, personnel, budget or resolves regimes and policies for the agency or organization that writes and places the sign. For example, the Ministry of Culture, Sports and Tourism is the direct governing body of the Culture Newspaper; The Hanoi People's Committee is the direct governing body of the Hanoi Department of Education and Training; Hanoi National University is the direct governing body of the University of Social Sciences and Humanities; Corporation X is the direct managing agency of Company Y.
The state management agency is not the direct governing body of a law office, private enterprise or some other type of company.
Business name on the sign
The Vietnamese name of a business includes two elements in order: Type of business and Personal name.
The type of business is written as “limited liability company” or “limited liability company” for limited liability companies; “joint stock company” or “joint stock company” for joint stock companies; “partnership company” or “HD company” for a partnership company; “private enterprise”, “private enterprise” or “private enterprise” for private enterprises.
Personal names are written with letters in the Vietnamese alphabet, the letters F, J, Z, W, numbers and symbols.
The business name must be attached to the head office, branches, representative offices, and business locations of the business. The business name must be printed or written on transaction papers, documents and publications issued by the business.
Based on the provisions of this Article and Articles 38, 39 and 41 of this Law, the Business Registration Authority has the right to refuse to approve the proposed registered name of the enterprise.
Expertis is always ready to answer any unclear questions or need legal support, please contact the consulting department for answers in accordance with legal regulations.