Today, society is developing day by day, leading to the improvement of people’s living standards. A lot of businesses are established in the market. So about the matter “Does a joint stock company have a legal status in Vietnam?” Let’s find out with LSX in the article below.
Legal grounds
- Enterprise Law 2020.
What is legal personality?
Legal status is the status of an organization that is granted by the state to perform certain rights and obligations independently and to be responsible before the law.
Conditions for being recognized as a legal entity:
An organization is recognized as a legal entity when it fully meets the following conditions:
– Established under the provisions of the Civil Code 2015, other relevant laws;
– Having an organizational structure as prescribed in Article 83 of the Civil Code 2015, specifically:
+ The legal entity must have an executive agency.
The organization, tasks and powers of the executive body of the legal person are stipulated in the charter of the legal person or in the decision on the establishment of the legal person.
+ The legal person has another agency according to the decision of the legal person or according to the provisions of law.
– Having assets independent of other individuals or legal entities and taking responsibility for their own property;
– Independently participate in legal relations on their own behalf.
Every individual and juridical person has the right to establish a juridical person, unless otherwise provided for by law.
What is joint stock company?
According to the provisions of Article 111 of the Enterprise Law 2020, a joint stock company (JSC) is an enterprise in which:
– Charter capital is divided into equal parts called shares;
– Shareholders can be organizations or individuals; the minimum number of shareholders is 03 and there is no limit to the maximum number;
– Shareholders are only responsible for the debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise;
– Shareholders have the right to freely transfer their shares to others, except for the cases specified in Clause 3, Article 120 and Clause 1, Article 127 of this Law.
– A joint stock company has legal status from the date of issuance of the Certificate of Business Registration.
– Joint stock companies have the right to issue shares of all kinds to raise capital.
Does a joint stock company have a legal status in Vietnam?
According to the provisions of the Enterprise Law 2020, a joint stock company is an enterprise in which:
• Charter capital is divided into equal parts called shares;
• Shareholders can be organizations or individuals; the minimum number of shareholders is 03 and there is no limit to the maximum number;
• Shareholders are only responsible for the debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise;
• Shareholders have the right to freely transfer their shares to others, except for the cases specified in Clause 3, Article 120 and Clause 1, Article 127 of the Enterprise Law 2020.
In addition, according to Article 94 of the Civil Code, an organization is recognized as having legal status when it meets the following 4 conditions:
• The organization is legally established (according to the provisions of Vietnamese law).
• Have a tight organizational structure.
• Having independent property from other individuals or organizations and being responsible for such independent property.
• Independently participate in legal relations on my behalf…
Thus, a joint stock company belongs to the type of enterprise with legal status.
Classification of legal entities
Legal entities include commercial legal entities and non-commercial legal entities:
Commercial legal entity
• A commercial legal entity is a legal entity whose main objective is to seek profits and to distribute profits among its members.
• Commercial legal entities include businesses and other economic organizations.
• The establishment, operation and termination of commercial legal entities shall comply with the provisions of the Civil Code, the Enterprise Law and other relevant laws.
Non-commercial legal entity
• A non-commercial entity is a legal entity whose primary objective is to seek profit; If there is a profit, it is not distributed among the members.
• Non-commercial legal entities include state agencies, people’s armed forces units, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, and organizations. social – profession, social fund, charitable foundation, social enterprise and other non-commercial organizations.
• The establishment, operation and termination of non-commercial legal entities shall comply with the provisions of the Civil Code, the laws on the organization of the state apparatus and other relevant laws.
Are legal entities criminally liable?
The Criminal Procedure Code 2015 regulates this issue as follows:
– Defendants and defendants include legal entities.
– The accused has the right to read, take note of, a copy of a document or a digitized document related to the accusation, acquittal or a copy of another document related to the defense from the end of the investigation upon request.
– The defendant is entitled to request the presiding judge of the court session to ask questions or to question the court participants himself if so agreed by the presiding judge; argued in court.
– For the procedure of interrogation of the accused:
• Compulsory audio recording or video recording at detention facilities or at the headquarters of the investigating agency, the agency tasked with conducting a number of investigative activities.
• The interrogation of the accused at another location shall be recorded or recorded with sound at the request of the accused or by agencies or persons competent to conduct proceedings.
– Reserve a separate Article to prescribe the procedure for considering parole from prison before the time limit with conditions.
Thus, legal entities are also subject to criminal liability.
Services of LSX
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, LSX’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all brand information of client LSX will be 100% confidential.
Please contact us immediately if you have any questions about “Does a joint stock company have a legal status in Vietnam?”
Contact LSX
Finally, hope this article is useful for you to answer the question about “Does a joint stock company have a legal status in Vietnam?” If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Please see more
- Types of enterprise under Vietnamese Law on Enterprise
- The differences between a cooperative and an enterprise in Vietnam.
- Enterprises send Vietnamese workers to practice abroad
Frequently asked questions
According to the provisions of the latest Enterprise Law, which is the Enterprise Law 2020, there are currently 5 types of enterprises including:
Limited liability company with 2 or more members;
One member limited liability company;
Joint stock company;
Partnerships;
Private enterprise.
Accordingly, for two-member limited liability companies, one-member limited liability companies, and joint-stock companies, these types of businesses all meet all the conditions in Article 74 of the 2015 Civil Code, so of course. 2-member limited liability companies, 1-member limited liability companies and joint stock companies have legal status.
A private enterprise does not have a legal status, and during its operation, there is no clear separation between the assets of the enterprise and the assets of the owner of the private enterprise. A private enterprise is owned by only one person, so the company’s organizational structure is simple and the operation scale is small.
Branches and representative offices are dependent units of legal entities, not legal entities. The branch is responsible for performing all or part of the functions of the legal entity. Representative offices have the task of representing within the scope assigned by the legal entity and protecting the interests of the legal entity. The establishment and termination of a branch or representative office of a legal person must be registered in accordance with law and made public. Accordingly, a branch or representative office is a dependent unit of a legal entity, not a legal entity.
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