In modern society, the economy is growing day by day, resulting in the increase of demand to establish a company. So what should you keep in mind when setting up a company? LSX legal firm provides this article to answer the question of “Notes for company establishment in Vietnam”
Legal grounds
- Law on Enterprise 2020
- Decree 47/2021/ND-CP
Notes for business establishment
Firstly, choosing the company’s type
According to the provisions of the Law on Enterprise 2020, these are the types of companies: Sole proprietorship, partnership, single-member limited liability company, multi-member limited liability company, joint-stock company. Each type of business has different legal characteristics, so choosing a type for business depends on the purpose and conditions of each investor.
Secondly, business lines
Business lines are the areas in which enterprises want to operate and must register with the management agency of the state.
Enterprises are allowed to do business in every industry that is not prohibited by the law. However, depending on the lines, the business must meet the conditions before and/or after the business registration.
Thirdly, business name
After choosing the appropriate type of business investors can choose the company name, according to Article 37 of the Law on Enterprise 2020
Fourthly, headquarter address
Investors should choose clear addresses. Besides, the headquarter must not locate in apartment or dormitory buildings.
Notes for Joint-stock company establishment
Name
The Vietnamese name of a joint-stock company consists of two elements: “type of business” and “name”.
When naming a company, check whether that name already exists or not? The company name must not overlap or confuse with another company registered in the same province or city.
Headquarters
The head office of the enterprise must locate in the Vietnamese territory with an identified address including house number, street name, name of commune, ward, township, district, city. In particular, it’s the contact address of the business; and identified by administrative boundaries. In addition, phone number (required); fax number, and email address (if any).
If the place where the head office located does not have a house number or street name. Then company must submit a locality confirmation (that the address does not have a house number or street name) 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
- Conditional business lines
For conditional business lines, depending on the lines, the company have to: Apply for a business license issued by a competent authority for that business, satisfy the regulations on environmental standards, fire preventing and fighting, social order, etc. - Lines with legal capital required
For each specific industry regulated clearly the amount of legal capital to establish a company. The level of legal capital is determined with each specific business line (not with each type of business), and is approved by sub-law documents issued by state agencies.
- Lines with practice license/certificate required
Depending on the business line, the owner or manager of the company needs a practicing certificate. Therefore, identifying business lines is very important for investors. They must make sure that they can satisfy the legal conditions to be able to apply for a business registration certificate.
Identify charter capital sources
Enterprises are allowed to set their own charter capital. However, we not recommend you to declare the amount that is not true. Because if it is discovered, the business will have to take full responsibility.
Notes for Limited Liability Company (LLC) establishment
Name
- The company name must include two parts in order: Type of business + Name. Specifically, for a limited liability company: “limited liability company / limited company + company name”. Firms must choose the names written by the letters of the Vietnamese alphabet, letters F, J, Z, W, numbers, and symbols.
- Business names in foreign languages must be made up of the Latin Alphabet
- The name must not overlap with Vietnamese name, foreign name as well as abbreviated name of other registered enterprises; except for enterprises that have been dissolved; or bankrupt.
- Business Registration Office has the right to accept or refuse the proposed name to be registered according to the provisions of the Law. Besides, the decision of the Business Registration Office is the final decision.
Headquarters
The head office of the enterprise must locate in the Vietnamese territory with an identified address including house number, street name, name of commune, ward, township, district, city. It is the contact address of the business and is identified by administrative boundaries. In addition, phone number (required); fax number, and email address (if any).
Business lines
Enterprises are only allowed to register their business within the scope of business lines which are not prohibited by law.
Depending on the line, the enterprise must meet the conditions before and after the registration. For example, if business lines require legal capital, the firm must prove the amount of legal capital before its registration … Also, enterprises must have practice certificates and related legal papers for conditional business lines.
Charter capital
Charter capital is the amount of capital contributed or committed to contribute by members or shareholders within a certain period and recorded in the company’s charter.
Currently, there is no regulation on the minimum amount of charter capital to be contributed when establishing a business; Except for some cases where the law requires Legal capital-the minimum capital to establish an enterprise.
LSX legal firm’s service on company 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
Registration of a single-member limited liability company in Vietnam
Required tax for business establishment in Vietnam
After registration, what should the business do in Vietnam?
Related questions
Submit business registration application directly at the One-Stop Department of the Department of Planning and Investment where the company is located;
Submit onlinel: https://dangkytinhdoanh.gov.vn
Article 17. The rights to establish, contribute capital, buy shares/stakes and manage enterprises
1. Organizations and individuals have the right to establish and manage enterprises in Vietnam in accordance with this Law, except for the cases specified in Clause 2 of this Article.
2. Minors; people with limited civil act capacity; incapable of civil acts; people with difficulties in cognitive-behavioral control; organizations without legal status;
Thus, individuals who reach the age of 18 have the right to establish and manage a company.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Notes for company establishment in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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