# Significant increase in penalties for enterprise registration violations

**URL:** https://investment-insights.vn/blog/significant-increase-in-penalties-for-enterprise-registration-violations.md

To assist investors and corporate leaders in proactively ensuring legal compliance under the new Decree No. 288/2026/ND-CP, this article outlines the core changes regarding administrative penalties for enterprise registration non-compliance and new obligations concerning beneficial owners.

![assistive technology](https://cdn.sanity.io/images/7ua2wbio/production/adc8df01f57a16465d302e3ee0c80de24fe9374c-602x456.png?w=1600&fm=webp&q=80&auto=format)

## 1. Dishonest, Inaccurate, or Failing to Declare

- **_Amendment to Article 43:_** Imposes a fine ranging from **VND 30,000,000 - 70,000,000** for making dishonest or inaccurate declarations in dossier for initial registration, amendments, or dissolution of enterprises, branches, representative offices, or business locations; or **information regarding beneficial owners**.
- **_Addition of Clause 4, Article 46:_**Imposes a fine ranging from **VND 50,000,000 - 100,000,000** for failing to declare **information on beneficial owners (or information to identify beneficial owners)** at the time of initial enterprise registration; alongside a remedial measure requiring full declaration of the information.

## 2. Violations of Enterprise Registration Amendment timelines

Comprehensive amendment to Article 44 regarding late registration or notification of changes to Enterprise Registration Certificates, operation of branches/representative offices/business locations, suspension or resumption of business, and establishment of overseas branches/representative offices:

| Fine | Violation | Remedial measures |
| --- | --- | --- |
| Warning | Overdue by 1 to 10 days | Compulsory provide all required information in full. |
| VND 10,000,000 – 20,000,000 (up from VND 3,000,000 - 5,000,000) | Overdue by 11 to 30 days |  |
| VND 30,000,000 – 40,000,000 (up from VND 5,000,000- 10,000,000) | Overdue by 31 to 90 days |
| VND 50,000,000 – 60,000,000 (up from VND 10,000,000- 20,000,000) | Overdue by 91 days or more |
| VND 30,000,000 – 70,000,000 (up from VND 20,000,000- 30,000,000) | Failure to register changes |
| VND 70,000,000 – 100,000,000 | Failure to supplement beneficial owner information in the latest registration amendment dossier for enterprises established prior to July 1, 2025 |

## 3. Violations regarding reporting requirement

Amendments and additions to Article 48 increase fine thresholds and revise remedial measures for reporting violations.

| Fine | Violation | Remedial measures |
| --- | --- | --- |
| VND 20,000,000 – 30,000,000 (up from VND 10,000,000 - 15,000,000) | Submitting incomplete reports/information or failing to meet reporting deadlines upon request | Compulsory submission of missing information |
| VND 40,000,000 – 50,000,000 (up from VND 15,000,000 - 20,000,000) | Failure to suspend/terminate business activities in conditional business sectors; or Failure to change company name infringing intellectual property rights upon request | Compulsory change of enterprise name or removal of intellectual property infringing elements |
| VND 50,000,000 – 70,000,000 | Failure to report/provide requested information; or Providing dishonest/inaccurate information upon request | Compulsory submission or re-provision of accurate information |

## Strategic actions

To ensure regulatory compliance and optimize operations under the heightened legal sanction framework, enterprises should immediately implement the following three action steps:

1. **Review & Supplement Beneficial Ownership information** — Enterprises established after July 1, 2025: Register comprehensive beneficial ownership information upon initial incorporation filing. Enterprises established prior to July 1, 2025: Update and supplement beneficial owner details in the next nearest filing for enterprise registration amendments or notifications.
2. **Establish a statutory timeline compliance tracking mechanism** — Proactively prepare and track all corporate changes (capital, address, branches, operational status) to submit within statutory deadlines.
3. **Conduct rigorous information reconciliations** — Strictly verify the absolute accuracy of all supporting documents and explanatory reports submitted to licensing authorities.

### QUOTE: ENTERING COMPLIANCE RIGOR

  
Adhering to statutory deadlines and ensuring transparency in corporate registration are vital to safeguarding budget and corporate reputation. Specifically, beneficial ownership disclosure is now a mandatory legal obligation.