What is a science and technology enterprise?

What is a science and technology enterprise? What policies and benefits are enjoyed? What are the steps to register to establish a science and technology enterprise? Let's find out with FUNDGO in the article below.

What is a science and technology enterprise?

A science and technology enterprise is defined as an enterprise that carries out production, business, and scientific and technological services to create products and goods from the results of scientific research and technological development.

Preferential policies and benefits for science and technology enterprises

As a special type of enterprise with high specificity, science and technology enterprises also enjoy many preferential policies and specific benefits. Among them, typical policies include: Exemption and reduction of corporate income tax; Exemption and reduction of land and water surface rent; Credit incentives; Support for research activities to commercialize scientific and technological results; Support and encouragement of application and innovation of technology.

• Corporate income tax exemption:

Science and technology enterprises enjoy tax exemption for the first 4 years and a 50% reduction in tax payable for the next 9 months. In addition, enterprises with no taxable income for 3 years will have the first year of tax exemption and reduction calculated from the 4th year.

An important note is that the condition of revenue generated from scientific and technological results must reach a minimum ratio of 30% on the total annual revenue of the enterprise.

• Exemption from land and water surface rent:

According to the provisions of the law on land, science and technology enterprises are exempted from land and water surface rent. This is stipulated in the decrees and circulars issued by the State and the Government such as: Decree No. 46/2014/ND-CP dated May 15, 2014; Decree No. 135/2016/ND-CP dated September 9, 2016; Decree No. 123/2017/ND-CP dated November 14, 2017; Circular No. 77/2014/TT-BTC dated June 16, 2014; Circular No. 333/2016/TT-BTC dated December 26, 2016.

• Science and technology enterprises enjoy credit incentives:

Investment projects to produce products created from the scientific and technological results of enterprises are entitled to borrow investment credit capital from the State according to current law provisions with the current interest rate of 8.55%/year.

In addition, science and technology enterprises are funded, lent at preferential interest rates, supported with interest rates and guaranteed to borrow capital. At the same time, they are considered and granted credit guarantees to borrow capital from lending institutions.

• Support research activities to commercialize scientific and technological results

Science and technology enterprises are supported in research activities and commercialization of scientific and technological results.

Specifically: Enjoying preferential import and export taxes; Priority in not collecting service fees when using machinery and equipment at state-owned scientific and technological research facilities; Using the enterprise's science and technology development fund and other legal capital mobilization sources to commercialize scientific and technological results; Priority in participating in projects supporting the commercialization of scientific and technological results and state intellectual property; Exemption from registration fees when registering land use rights and home ownership rights; Priority in developing national technical regulations for products formed from scientific and technological results;

• Support and encourage technology application and innovation

In addition, science and technology enterprises enjoy beneficial support policies such as:

Facilitated with capital support, capital guarantees, and interest rate support of up to 50% on loan interest rates at commercial banks for enterprises investing in technology decoding activities; Enterprises with projects participating in industry clusters and value chains are considered for loans by the Small and Medium Enterprise Development Fund.

In addition, science and technology enterprises that invest in scientific research and technology development themselves are supported by the state budget. In some cases, the state will consider buying back the results.

At the same time, they are given priority in establishing intellectual property rights, being recognized and registering the circulation of products from scientific and technological results. They are also honored and rewarded for their achievements in scientific and technological activities and commercialization of products from scientific and technological results.

Conditions for establishing a science and technology enterprise

Science and technology enterprises are established and operate under the Enterprise Law. In which, the conditions for establishment include:

• Revenue from production and trading of products derived from scientific and technological results must account for at least 30% of total revenue.
• Ability to create or apply scientific and technological results that have been evaluated, appraised and recognized by competent authorities.

In addition, enterprises need to have documents confirming and recognizing scientific and technological results such as: Certificate of intellectual property protection; Certificate of award given by competent authorities; Certificate of technology transfer registration; Other documents of equivalent legal value.

Along with that are the decisions to recognize and certify the registration of results of scientific and technological tasks using the state budget. Or the certificate or appraisal of results of scientific and technological tasks not using the state budget.

Steps to register to establish a science and technology enterprise

To be granted a certificate of science and technology enterprise, the enterprise needs to carry out the following procedures:

• Step 1. Enterprises self-check the conditions for granting certificates of science and technology enterprises according to the conditions stated in section 1.

• Step 2. Prepare documents, including:

(1) Request for certification of science and technology enterprise according to Form No. 01 in the Appendix issued herewith Decree 13/2019/ND-CP;

(2) Document confirming and recognizing scientific and technological results of a competent authority (a copy presented with the original for comparison or a certified copy), belonging to one of the following documents:

– Certificate of intellectual property protection;

– Decision to recognize new plant varieties, new livestock varieties, new aquatic varieties, new forestry varieties, and technical advances;

– Certificate of award for the performance of tasks that have achieved science and technology awards chaired and coordinated by competent state agencies to consider and award awards or agree to allow organizations to consider and award awards;

– Decision on recognition of results of implementation of scientific and technological tasks using state budget or Certificate of registration of results of implementation of scientific and technological tasks using state budget; Certificate or certificate of appraisal of results of implementation of scientific and technological tasks not using state budget;

– Certificate of technology transfer registration;

– Other confirmation and recognition documents of equivalent legal value.

(3) Production and business plan for products formed from scientific and technological results according to Form No. 02 in the Appendix issued herewith. Decree 13/2019/ND-CP.

• Step 3. Submit application

Enterprises submit 01 set of documents requesting certification of the above science and technology enterprise.

Place of submission: Department of Science and Technology where the enterprise has its head office; or

Department of Market Development and Science and Technology Enterprises, Ministry of Science and Technology if in one of the following cases:

– Scientific and technological results are formed from special scientific and technological tasks; are important for socio-economic development, national defense and security nationwide; play an important role in enhancing national scientific and technological potential; solve scientific and technological problems related to many sectors, many fields, inter-regional, especially environment, health; information technology and telecommunications infrastructure;

– Enterprises established from the conversion of public science and technology organizations that register scientific and technological activities at the Ministry of Science and Technology;

– The Department of Science and Technology does not have sufficient technical qualifications to evaluate scientific and technological results and has a written request for the Department of Market Development and Science and Technology Enterprises to consider granting a Certificate of Science and Technology Enterprise;

– Enterprises with branches and production and business establishments in many provinces and centrally-run cities and have a written request to the Department of Market Development and Science and Technology Enterprises to issue a Certificate of Science and Technology Enterprise.

Submission form: Applications can be submitted in person, by post or online.

Where to register a science and technology enterprise?

Currently, the registration of establishment of science and technology enterprises has been specifically guided in documents, official dispatches, and circulars issued by competent state agencies.

For example, Official Dispatch No. 1048/BKHCN-PTTTDN dated April 16, 2019 guiding the issuance of certificates of science and technology enterprises; Circular No. 03/2021/TT-BTC dated January 11, 2021 guiding on tax exemption and reduction of corporate income tax for science and technology enterprises; Circular No. 76/2015/TT-BTC dated May 19, 2015 regulating interest rates for investment credit loans;...

In addition, when there is a need to register to establish a science and technology enterprise, business owners can go through organizations and centers that provide this service. This is a service that many business owners are interested in choosing because of its outstanding benefits as well as helping to save time, costs, and effort in establishing a business.

Currently, there are many units providing business registration services on the market. With the specific type of science and technology enterprise, business owners need to consider and carefully choose reputable and quality units to place their trust.

The Center for Investment, Research and Development of Science and Technology Enterprises under the FUNDGO Creative Startup Investment Fund is a unit that is trusted and accompanied by many science and technology enterprises. In particular, this is a unit that is currently providing a full package of science and technology enterprise registration services.

With this service of FUNDGO Center for Investment, Research and Development of Science and Technology Enterprises, businesses will optimize costs, save fees at the highest level while still ensuring efficiency and necessary benefits of the business.

In addition, the consulting team of FUNDGO Center for Investment, Research and Development of Science and Technology Enterprises are experienced, highly qualified, professional, and dedicated. With FUNDGO's full package of science and technology enterprise registration services, business owners can completely trust and save costs and time to build, manage, and operate their businesses.