Guidance on procedures for increasing charter capital of a partnership in Vietnamese

According to the current enterprise law, enterprises allowed to carry out procedures to increase the company’s charter capital. Accordingly, the partnership also has the right to adjust to increase the registered initial charter capital. What are the current legal regulations on procedures for increasing charter capital in a partnership? What are the forms of increasing charter capital in a partnership company? Lawyer X would like to answer the above questions as follows:

Legal grounds:

Enterprise Law 2020
Decree 01/2021/ND-CP
Circular 105/2020/TT-BTC

Consulting content

What is the charter capital of a partnership company?

The Enterprise Law 2020 stipulates:
Charter capital is the total value of assets contributed or committed to by members of the company and the company owner when establishing a limited liability company or partnership; is the total par value of shares sold or registered for purchase upon the establishment of a joint-stock company.

Thus, the charter capital of a partnership is the total value of assets contributed or committed by the company’s members and owners when establishing the partnership.

Forms of increasing charter capital of a partnership

According to current corporate law, a partnership that not allowed to issue securities. Accordingly, in order to increase charter capital, you can do in one of two ways:

• The members of the company contribute more capital. Each member will have to add their own assets to increase the charter capital of the company.
• Accepting new members. The company will accept more general partners or capital contributors.

Assets contributed as capital in a partnership

Regardless of the form in which the partnership increases its charter capital, the members will also have to contribute capital with their own assets. Assets contributed as capital can be Vietnam Dong, freely convertible foreign currency, gold, value of land use rights, value of intellectual property rights, technology, technical know-how, other assets that can value in Vietnam Dong.

The members of the company will have to carry out the procedures to transfer their ownership of assets to the company.

The transfer of ownership of assets contributed as capital is not subject to registration fees.
Moreover, or properties without registration of ownership. The capital contribution must make by handing over the contributed assets certified in writing.

Registering to increase charter capital of a partnership with state agencies

The two forms of increasing charter capital of a partnership are different; Therefore, there will be different order and procedures for registration of changes in business registration.

In case a partnership increases its charter capital by its members contributing additional capital

• When members of a partnership contribute more capital, the amount of charter capital will increase. Accordingly, the company will have to carry out procedures for registration of changes in charter capital, registration for changes in the percentage of contributed capital.
• The company will submit documents on the change of charter capital, change in the percentage of contributed capital to the Business Registration Office where the company registered.

In case a partnership increases its charter capital by accepting new members

• When a partnership increases its charter capital by receiving additional capital contributions from new members. This means that the company will accept new members. At that time, the partnership company will make a dossier on the change of general partners and the change of charter capital.
• The company submits documents on change of charter capital, change of contributed capital rate. At the same time, we also carry out registration procedures for changing general partners.

Related article

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Related question:

Service of increasing charter capital of a partnership of Lawyer X

• Firstly, process and procedure consulting
• Assist in the collection and declaration of necessary documents.
• Besides, assist in drafting valid documents.
• Representation to carry out procedures with state administrative agencies.
• Hand over after valid results are available.

With a team of consultants and consultants for many years in the business field; as well as customer support. When used by Attorney X; Customers can rest assured about the legal procedure after it is done. Professional consulting team, enthusiastic in the process of working.

Please contact us immediately when there is a need to use the service of increasing charter capital of a partnership

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