Can anyone start a business? Can public employees set up businesses? Please refer to the following article by Lawyer X to learn more about this issue.
Legal grounds
Enterprise Law 2020
What is a public employees?
Above all, according to Vietnam’s law, public employees who are Vietnamese citizens are recruited by job position, work at public non-business units under the working contract regime, and receive a salary from the salary fund of the non-business unit public.
In which, the public non-business unit is an organization established by a competent state agency, political organization, or socio-political organization, having legal status, and providing public services; and serve the State management
Conditions for establishing a business
About the subject
The following subjects will not be allowed to establish businesses, including:
- Firstly, cadres, civil servants, public employees, officers, non-commissioned officers, cadres, workers, and public employees of military units, police. Except for the person appointed as the authorized representative to manage the State’s capital contribution in the enterprise or in the State enterprise;
- Secondly, ersons being examined for penal liability, detained, serving prison sentences, etc.; other cases as prescribed by the Law on Bankruptcy 2014; Law on Anti-Corruption 2018.
- State agencies and units of the people’s armed forces use state assets to establish profit-making enterprises for their own agencies or units;
- Then, organizations that are commercial legal entities are prohibited from doing business or operating in certain fields.
- Minors; people with limited civil act capacity; persons who have lost their civil act capacity; people with difficulties in cognition and behavior control; organizations without legal status;
- Lastly, professional leaders and managers in state-owned enterprises. However, except for the person appointed as an authorized representative to manage the State’s capital contribution in other enterprises;
So, if you are outside of the above target groups, you can completely set up a business.
About industry and business
Enterprises can register to operate in all industries that not prohibited by law. However, some conditional business lines need to meet:
- Real estate business.
- Employment service business requires at least 03 employees with college degrees or higher; have full civil act capacity, clear background.
- Or the conditions for establishing a law firm; the representative needs to have a practicing certificate (attorney card);
- Business accounting services: must have a certificate of eligibility for accounting services;
So, can public employees set up a business?
Public employees which not allowed to set up and manage businesses. However, the law also creates conditions that allow public employees to contribute capital in each type of enterprise, specifically:
For a joint-stock company, public employees may participate as a capital contributing shareholder, but not as a member of the board of directors or the supervisory board of the enterprise.
For single-member limited liability companies; limited liability companies with two or more members; then an official cannot contribute capital in this type of enterprise because this type of enterprise when participating means having a membership, but having a membership is having a management role in it.
In case of a partnership, an officer can only participate as a syndicated member, not as a general partner. Only as a syndicated capital do they not have the ability to manage the business.
So, public employees that not allowed to establish and manage enterprises to ensure transparency, objectivity, and competitiveness in business activities. Public employees are a person working in a State agency or unit. Will prevent possible corruption, operating to gain illicit profits.
Related article:
- Conditions for setting up an auction company in 2022 in Vietnam
- Notes for company establishment in Vietnam
Contact information Lawyer X
Above is the article “Can public employees establish a business?” by Lawyer X
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So, If there is a need for advice, use the service of setting up a company of Lawyer X, please contact LSX Law firm : +84846175333 or Email: [email protected]
Frequently asked questions
In addition to the form of submitting the application for business establishment directly at the Business Registration Office; If you can’t do it in person, you can submit your application online with your business registration account at the website: dangkykinhdoanh.gov.vn
After that, choose the type of business that suits the needs and aspirations of the business owner. You prepare 01 dossiers and submit it to the Business Registration Office where the enterprise is headquartered. After 03 days from the date of receiving the valid application, you will receive the Business Registration Certificate. After that, complete some other procedures such as: opening an account; Registration tax code, etc.,
Conclusion: So the above is In Vietnam, can public employees establish a business?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
