The economic development of Vietnam currently growing stronger and stronger in the modern world. Nowadays, business is very simple; all you need is a little capital, passion, experience, and capacity, then you can start a business. Establishing and managing a business is a legal right of citizens. However, some special subjects not allowed to register a business, including teachers in particular and government officials in general. In this article, LSX legal firm would like to give you an insight into: “Can teachers set up a company under Vietnamese legislation”
Legal grounds
- Law on Enterprise 2020
- Law on Public Employees 2010
- Also, Law on Anti-Corruption 2018
Who are the teachers under the law?
Teachers educate students, make plans to conduct teaching sessions, practices, and develop courses according to the school’s curriculum. At the same time, they also set up questions for exams, and grade exams for students to evaluate the quality of each student.
Teachers at public schools are public employees as prescribed in Article 2 of the Law on Public Employees 2010: “Public employees are Vietnamese citizens recruited according to working positions, working in public non-business units under working contracts and salaried from salary funds of public non-business units in accordance with the law”.
Can teachers set up a company?
Vietnamese legislation respects a person’s right to be a citizen in the freedom to act, which reflected clearly in the law on enterprises. The law stipulates that almost every individual and organization has the right to participate in the establishment of an enterprise. However, Clause 2, Article 17 of the Enterprise Law 2020 stipulates:
“2. The following organizations and individuals do not have the right to establish and manage enterprises in Vietnam:
a) State authorities, People’s armed forces using state-owned assets to establish enterprises to serve their own interests;
b) Officials and public employees defined by the Law on Officials and the Law on Public Employees;
c) Commissioned officers, non-commissioned officers, career military personnel, military workers, and public employees in agencies and units of the Vietnam People’s Army; commissioned officers, non-commissioned officers, and police workers in police authorities and units, except for those designated and authorized representatives to manage state-owned stakes in enterprises or to manage state-owned enterprises;
………”
As mentioned above, teachers are public servants, so they are not allowed to participate in the establishment of companies. The law wants to limit corruption, taking advantage of relationships as well as powerful positions (people holding leadership positions) because this may lead to a negative situation. It is easy to turn businesses into their “backyards” to gain illicit profits. For the same reason, the anti-corruption law prohibits civil servants and public employees from doing this.
Teachers have the right to contribute capital and buy shares
Although they are not allowed to set up and manage businesses, teachers of public schools can still participate in business in the form of capital contribution to establish a company. Particularly, Clause 3, Article 17 of the Law on Enterprises stated:
“3. Organizations and individuals have the right to contribute capital, buy shares and stakes of joint-stock companies, limited liability companies, and partnerships in accordance with this Law, except:
a) State authorities, People’s armed forces contributing state-owned assets to enterprises to serve their own interests;
b) The entities that are not allowed to contribute capital to enterprises prescribed by the Law on Officials, the Law on Public Employees, and Anti-corruption Law.”
Thus, except for the establishment and participation in the management of the company. Teachers have the right to contribute capital, buy shares, and buy capital contributions to companies.
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.
Furthermore, 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
- Fees to establish a Joint-stock company in Vietnam 2022
- How to establish a Joint-stock company in Vietnam?
- Newly established businesses declare tax monthly or quarterly in Vietnam?
Related questions
Firstly, Sole proprietorship.
Secondly, Partnership.
Thirdly, Single-member limited liability.
Fourthly, Multi-member limited liability.
Lastly, Joint-stock.
The time limit for the suspension of a tax agent’s operation from the effective date of the suspension decision until the remedy of violation. Maximum 90 days.
Contact LSX
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