Establishment of physical training and sports centers

In this article, Siglaw will provide you with the process to establish physical training and sports in accordance with current laws.

According to the 2006 Law on Physical Training and Sports, amended and supplemented in 2018, a sports activity center is a sports facility and can operate under the following forms: sports non-business units, enterprises, and sports business households and other organizations doing business of sports activities.

However, for sports business households and other organizations, wishing to do business in adventure sports and sports activities, required a training instructor and need to register for enterprise establishment first.

1. Establishment of sports enterprises

Step 1: Prepare enterprise establishment information:

• Enterprise's name.

• Address of the head office: the contact address of the enterprise and is determined according to the geographical boundaries of the administrative unit.

• Authorized capital.

• Information of the legal representative and the founders of the sports enterprise.

• Industry code: Some professions that need to be registered when establishing sports enterprises:

• An enterprise established to conduct business in the operation of sports facilities (specifically, establishing physical training and sports centers) has a registered industry code of 9311.

• Type of enterprises: sole proprietorship, partnership, limited liability company, joint-stock company.

Step 2: Prepare and submit application

A dossier of establishment of sports enterprises includes:

• Application for enterprise registration.

• Draft charter of the enterprise (enterprise name, official office address, registered charter capital, type of enterprise, industry code...)

• List of members of a limited liability company or a list of shareholders of a joint-stock company participating in the establishment of a physical training and sports centers.

• People ID; Citizenship card or passport of the owner of a private company, a member of a limited company or a shareholder of a joint stock company.

Submit the application for setting up sports enterprises at the enterprise registration office of the Department of Planning and Investment of the province where the enterprise's head office is located.

Step 3: Receive the result

The competent authority will issue the Certificate of Enterprise Registration.

Time limit: 04-06 working days from the date of receipt of complete and valid dossiers.

(The business registration agency must send a copy of the enterprise registration certificate to the state management agency in charge of physical training and sports)

After the enterprise has completed the establishment of a company, it is necessary to apply for a sports business qualification certificate before it can legally establish physical training and sports centers.

2. Apply for a sports business qualification certificate to establish physical training and sports centers

According to current law, sports enterprises may only do business when they have been granted a sports business qualification certificate by the competent People's Committee. Therefore, before establishing a sports center, enterprises need to apply for a sports business qualification certificate. 

Conditions for doing business in sports activities are:

• Having a team of professional officers and employees suitable to the content of activities.

• Having facilities and equipment to meet the requirements of sports activities.

The process of applying for a Certificate of eligibility for sports business is carried out according to the following steps:

Step 1: Prepare documents

• An application for a certificate

• A brief report on the prepared business conditions 

• A copy of the enterprise registration certificate.

• Copies of diplomas, credentials and certificates of professional staff.

Step 2: Submit application

The enterprises submit the application to the People's Committee of the province where the enterprise registers the location of the establishment of physical training and sports centers.

(Or the People's Committee where the enterprise's head office is located, in case the enterprise has established multiple sports centers).

Step 3: Receive and process documents

The competent authority shall grant the enterprise a certificate of receipt of the dossier.

(In case the dossier needs to be amended or supplemented, the competent authority shall notify the enterprise directly or in writing).

Time limit: 03 working days from the date of receiving the application.

Step 4: Check and issue the Certificate

The specialized agency shall check the business conditions for sports activities of the enterprise and issue the sports business qualification certificate (within 07 working days from the date of receipt of a complete and valid dossier).

In case of refusal, the competent authority shall notify in writing and clearly state the reasons.

Step 5: Receive the result

Enterprises receive the results at the head office of the certificate-issuing agency or by post or online.

After having obtained the sports business qualification certificate, an enterprise may establish physical training and sports centers with the following duties and powers:

• Organize physical training and sports activities according to the registered contents.

• Provide services for trainees.

• Ensuring the safety of trainees during training and competition at the facility.

• Recruitment, use and management of human resources.

• Management and use of land, facilities and equipment.

• Receive and use funding and support from organizations and individuals.

• Help and create conditions for children, the elderly and people with disabilities to participate in physical training and sports activities.

3. Legal basis

• Enterprise Law No. 59/2020/QH14 dated June 17, 2020.

• Law on physical training and sports No. 77/2006/QH11 dated November 29, 2006; Law No. 26/2018/QH14 dated June 14, 2018 amending and supplementing a number of articles of the Law on Physical Training and Sports.

• Decree No. 36/2019/ND-CP of the Government dated April 24, 2019 detailing a number of articles of the Law amending and supplementing a number of articles of the Law on physical training and sports.

• Decision No. 1994/QD-BVHTTDL of the Ministry of Culture, Sports and Tourism dated June 5, 2019 on the announcement of administrative procedures to be amended and supplemented in the field of physical training and sports within the scope of functions. management capacity of the Ministry of Culture, Sports and Tourism.