SUB-LICENSES

1. What is a Sub-license?

Currently, the Law on Investment 2020 and its guiding regulations do not provide a specific legal definition of the term “sub-license”.

However, in general terms, a sub-license may be understood as a license issued to individuals or organizations conducting conditional business lines in accordance with investment laws. A sub-license is a legal document certifying that an individual or organization satisfies the statutory conditions required to operate a conditional business line.

Pursuant to Clause 1, Article 7 of the Law on Investment 2020, conditional business lines are defined as follows:

“Conditional business lines are those for which investment and business activities must satisfy certain conditions for reasons of national defense, national security, social order and safety, social ethics, or public health.”

The List of Conditional Business Lines is stipulated in Appendix IV of the Law on Investment 2020.

However, not all conditional business lines listed in Appendix IV require a sub-license.

Accordingly, a sub-license can be understood as a legal document issued to individuals or organizations to certify their eligibility to conduct one or more conditional business activities.

Forms of Sub-licenses

Pursuant to Clause 6, Article 7 of the Law on Investment 2020, sub-licenses may take the following forms:

• Licenses;

• Certificates;

• Practice certificates;

• Written confirmations or approvals;

• Other requirements that individuals or economic organizations must satisfy in order to conduct investment and business activities without requiring written certification from a competent authority.

Characteristics of Sub-licenses

• Legal document: A sub-license is a legally valid document issued by a competent state authority, serving as proof that an individual or organization meets the conditions for conducting a conditional business line.

• Mandatory requirement for enterprises engaging in conditional business activities.

• Conditions and requirements vary depending on each specific business sector.

• Sub-licenses usually have a validity period, and enterprises must renew or reapply for issuance in order to continue operating.

• The issuance of sub-licenses aims to ensure compliance with requirements related to national defense and security, public order and safety, social ethics, and public health.

Common Types of Sub-licenses

Depending on the registered business sector, enterprises may be required to obtain different sub-licenses. Some common sub-licenses include:

Alcohol Trading Sector

• Alcohol distribution license;

• Alcohol retail license;

• Alcohol wholesale license;

• License for on-site alcohol consumption.

Travel and Tourism Sector

• Domestic travel service business license;

• International travel service business license.

Food & Beverage Businesses (Restaurants, Cafés)

• Certificate of eligibility for food safety and hygiene.

Road Transport Business

• License for road transport business by automobile.

CELIGAL’s Sub-license Application Services

CELIGAL provides legal services for obtaining various sub-licenses, including but not limited to:

• Alcohol distribution license;

• Alcohol retail license;

• Alcohol wholesale license;

• License for on-site alcohol consumption;

• Domestic travel service business license;

• International travel service business license;

• Certificate of eligibility for food safety and hygiene;

And many other types of sub-licenses.