Recently, starting a business became one of the popular activities when people have the desire to start business. This is one of the basic liberties of citizens. However, not everyone has this right for many reasons. Especially for special subjects such as teachers and public employees, the law has strict regulations regarding establishing and managing an enterprise. So, in this article, LSX legal firm will answer the question: “Can teachers set up company in Vietnam?”
Legal grounds
- Law on Enterprise 2020
- Law on Public Employees 2010
Establishing an enterprise
Enterprise establishment activities are conducted by investors based on legal provisions on the legal form of the enterprise, business lines, methods of capital contribution, enterprise management organization, rights, and obligations of businesses as well as investors who set up businesses…
From an economic perspective, investors carry out business establishment with capital investment activities, preparing necessary facilities for an economic organization to operate, including offices, headquarters, warehouses, technical equipment, and vehicles… suitable for producing goods or providing services. Usually, business founders will have a certain preparation step in terms of customer systems, and personnel plans to shorten the time to officially enter the market and look for business opportunities.
In legal terms, the establishment of an enterprise means an administrative procedure conducted by the founding members of the enterprise or their representatives at the business registration office, to legally give “birth” to the enterprise. In Vietnam, setting up an enterprise for business without enterprise registration will violate the law. Therefore, in addition to preparing the physical conditions for the establishment of the business, the investor is obliged to carry out the business registration procedure (business registration for the enterprise) so that the presence of the enterprise in the market is considered legal. Besides, depending on the laws of each country, investors may have to carry out some other relevant legal procedures to have a sufficient legal basis for enterprises to enter the market:
- Investment registration procedures (for investment projects to establish economic organizations subject to investment registration);
- Procedures for issuance of Certificate of eligibility for business (for investors who choose to do business in conditional business lines)
- …
The business establishment procedure results in an enterprise registration certificate for the business. Then, the enterprise officially established and becomes an independent entity with rights and obligations recognized and protected by the law.
Conditions to establish a company
Business name
The Vietnamese name of an enterprise shall contain two elements in order:
- The type of enterprise;
- The proper name.
The type of the enterprise shall be “công ty trách nhiệm hữu hạn” or “công ty TNHH” for limited liability companies; “công ty cổ phần” or “công ty CP” for joint stock companies; “công ty hợp danh” or “công ty HD” for partnerships; “doanh nghiệp tư nhân”, “DNTN” or “doanh nghiệp TN” for sole proprietorships.
The proper name shall consist of letters in the Vietnamese alphabet, the letters F, J, Z, W, numbers, and symbols.
The enterprise’s name shall be displayed at the headquarters, branches, representative offices, and business locations of the enterprise and printed or written on transaction documents, records, and printed materials published by the enterprise.
Business headquarter
According to the law, the head office of the enterprise must be located in the territory of Vietnam, also present as the contact address of the business, identified by administrative unit boundaries. In addition, has a phone number (required), fax number, and email address (if any).
Business lines
The company can only register the business lines that not prohibited by the law.
On the other hand, to operate in conditional business lines, the company has to satisfy the requirements corresponding to the lines such as obtaining related sub-licenses or equivalent certificates.
Charter capital
The capital to establish an enterprise must suit the field, industry, and business scale of the enterprise.
For enterprises with business lines that require legal capital, the initial capital must not lower than the level of legal capital.
Can teachers contribute capital and buy shares?
Teachers can contribute capital, and buy shares according to Clause 3, Article 17 of the Law on Enterprises 2020. Specifically as follows:
“Article 17. The rights to establish, contribute capital, buy shares/stakes and manage enterprises
3. Organizations and individuals have the right to contribute capital, buy shares and stakes of joint stock companies, limited liability companies, and partnerships in accordance with this Law, except:
a) State authorities, People’s armed forces contributing state-owned assets to enterprises to serve their own interests;
b) The entities that are not allowed to contribute capital to enterprises prescribed by the Law on Officials, the Law on Public Employees, and Anti-corruption Law.”
On the other hand, Article 14 of the Law on Public Employees stipulates that teachers have the right to participate in business activities or work outside the prescribed time, specifically:
- Firstly, to participate in professional activities outside the working time specified in the work contract, unless otherwise provided for by law.
- Secondly, to sign a contract with another organization, agency, or unit, if not prohibited by law, but must complete the assigned tasks and obtain the consent of the head of the management unit.
- Thirdly, to contribute capital but not participate in the operation and management of joint stock companies, partnerships, limited liability companies, cooperatives, private schools, private hospitals, and private scientific research organizations, unless otherwise provided for by specialized law.
Can teachers set up company in Vietnam?
Clause 2, article 17 of the Law on Enterprise provides cases prohibited from establishing and managing enterprise:
- State authorities, People’s armed forces using state-owned assets to establish enterprises to serve their interests;
- Officials and public employees defined by the Law on Officials and the Law on Public Employees;
- Commissioned officers, non-commissioned officers, career military personnel, military workers, and public employees in agencies and units of the Vietnam People’s Army; commissioned officers, non-commissioned officers, and police workers in police authorities and units, except for those designated and authorized representatives to manage state-owned stakes in enterprises or to manage state-owned enterprises;
- Executive officers and managers of state-owned enterprises prescribed in Point a Clause 1 Article 88 of this Law, except those who designated as authorized representatives to manage state-owned stakes in other enterprises;
- Minors; people with limited legal capacity; incapacitated people; people having difficulties controlling their behaviors; organizations that are not juridical persons;
- People facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, have limited legal capacity or incapacitated, not able to control his/her behaviors, banned by the court from holding certain positions or doing certain works; other cases prescribed by the Law on Bankruptcy and the Anti-corruption Law.
- Juridical persons that banned from business operation or banned from certain fields as prescribed by the Criminal Code.”
Accordingly, in case teachers are civil servants or public employees working under contracts working in public non-business units, they do not have the right to establish businesses in Vietnam.
In case a teacher is a contract worker at a private training center or institution,… (not a civil servant or public employee mentioned above), they are not subject to the prohibited cases mentioned above. So, they have the right to establish businesses.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Can teachers set up company in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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Related questions
Teachers educate students, make plans to conduct teaching sessions, practices, and develop courses according to the school’s curriculum. At the same time, they also set up questions for exams, and grade exams for students to evaluate the quality of each student.
Teachers at public schools are public employees as prescribed in Article 2 of the Law on Public Employees 2010: “Public employees are Vietnamese citizens recruited according to working positions, working in public non-business units under working contracts and salaried from salary funds of public non-business units in accordance with the law”.
The law wants to limit corruption, taking advantage of relationships as well as powerful positions (people holding leadership positions) because this may lead to a negative situation. It is easy to turn businesses into their “backyards” to gain illicit profits. For the same reason, the anti-corruption law prohibits civil servants and public employees from doing this.
Being 18 years or older and having full civil act capacity;
Having professional qualifications in teaching, working experience and being healthy as prescribed by the Minister of Health;
Not being a person who is serving a penalty or has not yet been cleared of criminal record; or is being examined for penal liability in accordance with foreign or Vietnamese laws.
Obtaining written approval from competent state agencies on the employment of foreign workers.
Conclusion: So the above is Can teachers set up company in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
