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Regulations on small, medium and micro enterprises

Government issued Decree No. 39_2018_ND_CP of the Government detailing a number of articles of the Law on Supporting Small and Medium Enterprises.

This Decree takes effect from March 11, 03 guiding the Law on Support for Small and Medium Enterprises, detailing the incentives and support for small and medium enterprises.

Especially, thanks to this decree, the definition of small, micro, and medium enterprises is clear and not as vague as before the decree.

What are micro enterprises, small enterprises and medium enterprises?

The following are guidelines for identifying the correct types of businesses to receive incentives and support.

What is a micro business?

How to define a micro business?

Micro enterprises in the fields of agriculture, forestry, fisheries and industry and construction have an average number of employees participating in social insurance on an annual average of no more than 10 people. , and total revenue of the year is not more than 3 billion or Total capital is not more than 3 billion dong.

Micro enterprises in the field of commerce and services have an average number of employees participating in social insurance of no more than 10 people per year , and total revenue of the year is not more than 10 billion or Total capital is not more than 3 billion dong.

Note the interpretation of the word “and” and the word “or” in the paragraph above.

What is small business?

How to define a small business?

Small enterprises in the fields of agriculture, forestry, fisheries and industry and construction have an average number of employees participating in social insurance of no more than 100 people per year. , and total revenue of the year is not more than 50 billion or The total capital is not more than VND 20 billion, but it is not a microenterprise as prescribed in Clause 1 of this Article.

Small businesses in the field of commerce and services have an average number of employees participating in social insurance of no more than 50 people per year , and total revenue of the year is not more than 100 billion or The total capital is not more than VND 50 billion, but it is not a microenterprise as prescribed in Clause 1 of this Article.

What is medium enterprise?

How to identify a medium-sized business?

Medium enterprises in the fields of agriculture, forestry, fishery and industry and construction have an annual average number of employees participating in social insurance of no more than 200 and an annual revenue of no more than VND 200 billion. or the total capital source does not exceed VND 100 billion, but it is not a small enterprise or a micro enterprise as prescribed in Clauses 1 and 2 of this Article.

Medium-sized enterprises in the field of commerce and services have an annual average number of employees participating in social insurance of no more than 100 and total annual revenue of not more than VND 300 billion or total capital of not more than VND 100 billion, but is not a microenterprise, or a microenterprise as prescribed in Clauses 1 and 2 of this Article.

How to determine the field of operation of small and medium enterprises?

The field of operation of small and medium-sized enterprises is determined based on the provisions of the law on the system of economic sectors and the provisions of specialized laws. In case of operating in many fields, small and medium enterprises are determined based on the field with the highest revenue. If it is not possible to identify the field with the highest turnover, small and medium-sized enterprises shall be determined based on the field that employs the most workers.

How to determine the average number of employees participating in social insurance per year of small and medium enterprises?

1. The number of employees participating in social insurance is the total number of employees managed, employed, and paid by the enterprise to participate in social insurance in accordance with the law on social insurance. 2. The average annual number of employees participating in social insurance is calculated as the total number of employees participating in social insurance in the year divided by the number of months in the year and determined on the previous year's social insurance payment receipt adjacent to which the enterprise submits to the social insurance agency. In case an enterprise has been operating for less than 01 year, the average number of employees participating in social insurance shall be calculated as the total number of employees participating in social insurance of the months of operation divided by the number of months of operation.

How to determine the total capital of small and medium enterprises?

Total capital is determined in the balance sheet shown in the financial statement of the preceding year that the enterprise submits to the tax authority. In case an enterprise has been operating for less than 01 year, the total capital source shall be determined in the balance sheet of the enterprise at the end of the quarter immediately preceding the time the enterprise registers for the support content.

How to determine total revenue?

Total revenue of the year is the total revenue from selling goods and providing services of an enterprise and is determined on the financial statement of the preceding year that the enterprise submits to the tax authority. In case an enterprise has been operating for less than 01 year or over 01 year but has not generated any revenue, the enterprise shall base itself on the criteria for total capital sources specified in Article 9 of this Decree to determine a small and medium-sized enterprise.

How to identify and declare small and medium enterprises?

1. Small and medium-sized enterprises shall base themselves on the forms prescribed in the Appendix to this Decree to identify and declare their sizes as micro or small-sized enterprises or medium-sized enterprises and submit them to agencies. , SME support organizations. Small and medium-sized enterprises must be responsible before the law for the declaration.

2. In cases where an enterprise detects that its scale is inaccurate by itself, small and medium-sized enterprises shall adjust and re-declare them. The re-declaration must be made before the time when small and medium-sized enterprises enjoy support contents.

3. In cases where enterprises intentionally declare dishonestly on the scale to get support, they must take responsibility before law and return all the related expenses and expenses for which the enterprises have received supports.

Information support for small and medium enterprises:

Small and medium-sized enterprises are free to access information on the National Small and Medium-sized Enterprise Support Portal managed by the Ministry of Planning and Investment and websites of ministries, ministerial-level agencies, and People's Committees of provinces and cities under central authority.

Consulting support for small and medium enterprises:

Small and medium-sized enterprises approach the network of consultants on the National Small and Medium Enterprise Support Portal, the websites of ministries and ministerial-level agencies to select consultants or consulting organizations. and consulting services tailored to the needs of the business. Small and medium-sized enterprises submit dossiers of request for consultancy support at agencies and organizations supporting small and medium-sized enterprises. The consulting dossier is a condition for the small and medium-sized enterprise support agency to consider providing consulting support services to small and medium-sized enterprises.

Support human resource development for small and medium enterprises

Support for training in business start-up and business administration. The state budget supports at least 50% of the total cost of a training course on business start-up and business administration for small and medium-sized enterprises; Students of small and medium-sized enterprises in extremely difficult socio-economic areas and female-owned small and medium-sized enterprises are exempt from tuition fees to attend training courses. Vocational training support: Small and medium enterprises, when sending workers to attend elementary level training courses or training programs of less than 03 months, are exempt from training costs. The remaining costs shall be agreed upon by the small and medium enterprises and the employees. Support for direct training at small and medium enterprises Small and medium enterprises operating in the field of production and processing are supported 50% of the total cost of a direct training course at the enterprise but not more than once a time. year; The in-company training course has a minimum of 01 students.