I. Software manufacturing industry code 

When registering a business, businesses need to register one of the following industry codes:

II. Software company establishment document – Software company establishment document

2.1. Documents for establishing a software company include:

• Application for registration to establish a software company.
• Company charter.
• List of company members and founding shareholders
• Copy of ID card/CCCD/passport of the legal representative; Copy of the Establishment Decision and Business Registration Certificate of the member/capital contributing shareholder who is an organization.
• Document appointing an authorized representative of the organization and copy of ID card/CCCD/passport of the authorized representative.
• Power of attorney for an organization to carry out procedures at the Department of Planning and Investment on behalf of the business (if the legal representative does not directly perform).
• Copy of ID card/CCCD/passport of the applicant.

2.2. Submit application 

You can choose to submit your application in one of the following two ways:

• Method 1: Submit your application directly to the Business Registration Office
• Theh 2: Submit your application online on the National Business Registration Portal 

3. Thing conditions to be identified as a software manufacturing enterprise

To establish a software production company and be recognized for software production activities as well as enjoy preferential policies (CIT 10%), it is necessary to have:

• Business registration certificate or documents regulating functions and tasks issued by a competent authority 
• Software products produced are regulated by the Ministry of Information and Communications
• The prescribed software production process includes 7 stages 

A company is determined to meet the software production process if it satisfies the following two conditions:

• Any of the 7 stages but performing at least 1 of the 2 stages “Determine requirements” or “Analysis and design” (Article 3).
• There are documents proving that the enterprise has performed each step (Article 4).

4. Tax incentives for software manufacturing businesses

According to Circular 20/2021/TT-BTTTT 

a) Value added tax

Regardless of whether the software is outsourced, software produced by the company itself or purchased for sale, even the case of selling software with installation services is still subject to the law. Not subject to VAT.

Note: For subjects not subject to VAT, on the invoice, VAT is not recorded and crossed out.

b) Corporate income tax

• Within 4 years, businesses are exempt from corporate income tax;
• In the next 9 years, reduce 50% of corporate income tax payable;
• Within 15 years, the corporate income tax rate is 10%.

Note: The tax exemption and reduction period is calculated continuously from the first year of generating taxable revenue.

c) Other investment incentives

• Import tax exemption for goods imported to create fixed assets or raw materials, supplies, and components imported for production;
• Exemption or reduction of land use fees, land rent, land use tax;
• Accelerated depreciation increases deductible expenses when calculating taxable income.

III. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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