The establishment of any type of enterprise is a door to open up opportunities for economic development, brand, and entering the international commerce arena. What is the necessary information about legal knowledge regarding the business establishment? Follow this article for a better understanding
Business Establishment
Before setting up a company, there is a lot of information to learn to start the legal procedures of establishing a business. So what do you need to know when starting a company?
The answer is that you have to choose the type of business, company name, business lines, company address, charter capital, legal representative…etc. to see whether the actual conditions of the individual/organization intends to set up a business meet the requirements as prescribed by law or not?
Details
Subject
- Having an ID card/Passport
- Capable to civil acts
- Not prohibited by law to establish a company
Members/shareholders
This is an important issue. The number of members will directly affect the type of company when established.
Members/shareholders are those who have the right to decide on the existence, development, or dissolution of the enterprise. Cooperation with members/shareholders having the same opinion will be one of the decisive conditions for the success of the company and vice versa.
So, please consider carefully about this problem before the establishment.
Business types
At the present time, there are 4 common types of business:
- Single-member limited liability company: Owned by an individual or an organization (can hire a legal representative);
- Multiple-member Limited liability company: From 2 to no more than 50 limited partners, members can be individuals/organizations (can hire legal representatives);
- Joint Stock Company: From 3 or more individuals or organizations and does not limit the number of shareholders (can hire legal representatives);
- Sole Proprietorship: Owned by 1 individual, with unlimited liability by private assets (This type is not usually chosen due to high legal risk);
However, after the stable operation, it is completely possible to convert the type of business if needed.
Name
The company name must not overlap or cause confusion with the name of a business that has been registered before on the National Database. The enterprise name must be written in Vietnamese, including numbers and symbols, must be pronounceable, and contain at least two elements:
“Types of company + Name”
Besides, the law allow English in the company’s name.
Head Office’s address
“House number with street name + name of ward/commune/town + name of district/township/provincial city + central city/province”
If the place where the head office located does not have a house number or street name. Then a locality confirmation (that the address does not have a house number or street name) must be submitted together with the business registration dossier.
Before renting an office in a building/apartment, you should check whether the apartment has legal commercial/office functions before signing.
Business lines
According to regulations, enterprises have the right to perform any business that is not prohibited by law and need to register with the Business Registration Authority before operating.
Before the establishment, it is necessary to know whether the line of business you intend to do is on the list of prohibited industries or conditional business.
Charter Capital
Charter capital means the capital contributed or committed by members or shareholders within 90 days. The law does not require proof of capital when establishing a business. Unless the company register the line of business that requires legal capital, then the charter capital must not be lower than the legal capital.
LSX legal firm’s service on business establishment
When establishing a company, people must carry out the procedure following the law at the competent business registration authority (under the Law on Enterprise 2020). The process of establishing a business includes many different steps and phases. If you are not familiar with the law, this process may take a lot of time.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
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.
Related articles
Establishment of a foreign-invested company engaged in shipping business in Vietnam
Conditions for establishing a pawnshop business in Vietnam
Establishment of a business location of a foreign-invested company
Related Questions
An application for enterprise registration.
The company’s charter.
Copies of the following papers:
a) Legal documents of the individual for the legal representative of the enterprise;
b) Legal papers of an individual, for the company owner being an individual; Legal papers of the organization for the company owner being an organization (except for the case where the company owner is the State); Legal papers of individuals for authorized representatives and documents on the appointment of authorized representatives.
For the company owner is a foreign organization, the copy of the legal papers of the organization must be consular legalized;
c) Investment registration certificate, in case the enterprise is established by a foreign investor or a foreign-invested economic organization according to the provisions of the Investment Law and guiding documents.
The trademark protection title valid from the date of issue to the end of 10 years from the filing date. When it expires, the owner can extend it further, without limiting the number of extensions.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Necessary information for business establishment in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is Necessary information for business establishment in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
