Reference situation:

Three people would like to do business in cosmetics. They are going to establish a company specializing in cosmetic production and importation for trading in the Vietnam market. However, they do not know how to start their objectives. They would like to consult lawyers about legal conditions and necessary procedures for establishing their company and doing cosmetic business.

Legal grounds:

1. Law on Enterprise 2014
2. Decree No. 78/2015/ND-CP on enterprise registration
3. Decree No. 108/2018/ND-CP on amendment and addition to Decree No. 78/2015/ND-CP
4. Decree No. 132/2008/ND-CP guiding Law on goods’ quality
5. Circular No. 06/2011/TT-BYT on cosmetics management

Our legal advice:

In order to accomplish the objective, as shown above, they should note about the two following activities

1. Establishment of a company

The form of the company can be a partnership company, a limited liability company or a joint-stock company with different structures and the owner’s rights and obligations. Please click here to explore the procedures for the establishment of a company. The company must register its business line in cosmetic production and distribution.

2. Conditions and procedures for cosmetic business

Any organizations, individuals can only circulate their cosmetics after a competent state agency issues a code number on a cosmetic declaration document, and they are responsible for their product’s safety and quality. The state agency can also inspect their products after circulation. The cosmetic declaration will be conducted by the following procedures:

a) For domestically produced cosmetics

• Necessary documents: 02 (two) cosmetic declaration e-documents together with necessary data
• Licensing authority: Provincial Department of Health where the factory is located
• Time to get result: 03 working days from the date on which the Department receives enough valid documents

b) For imported cosmetics

• Necessary documents:

– 02 (two) cosmetic declaration e-documents together with necessary data

– An original of, or a copy certified by a notary office, of the authorization letter from the manufacturer or the owner to the company, which is legalized by a competent authority of Vietnam.

– An original of, or a copy of a certificate of free sale (CFS) certified by a notary office, which is legalized by a competent authority of Vietnam. The CFS must not be expired. If the CFS does not have its expiration, the CFS must be issued within the previous 24 months from the date of issuance.

• Licensing authority: Drug administration authority – Ministry of Health
• Time to get results: 03 working days from the date on which the licensing authority receives enough valid documents

After the company completes the procedures, as shown above, the company can put or import their cosmetics to circulation. During its operation, the company must record the information of the cosmetics at the company’s headquarter, and must label the cosmetics with information like, among others, manufacture’s name, ingredients, preservative, instruction.