The law stipulates that citizens have the right to freely conduct business to the extent permitted by law. The holder of the right to establish an enterprise is recognized by law and has the right to conduct business registration as well as the right to manage the enterprise. The law empowers and protects the right to establish and manage a business. LSX Lawfirm will give you an article about: “Regulations on the right to establish and manage enterprises in Vietnam”, as follows:
Legal grounds
Enterprise Law 2020;
Law on Public Officials 2008;
Law on Public Employees 2010;
Then Law on anti-corruption 2018.
The concept of founders and business managers in Vietnam
So, an enterprise manager is a manager of a private enterprise and a company manager, including the owner of a private enterprise; a general partner, the chairman of the Members’ Council, a member of the Members’ Council; and the chairman of the Board of Directors. the company, the Chairman of the Board of Directors; members of the Board of Directors, the Director or General Director; and individuals holding other managerial positions as prescribed in the company’s charter.
Enterprise founder means an individual or organization that establishes or contributes capital to establish an enterprise.
Regulations on the right to establish and manage enterprises in Vietnam
Firstly
Enterprise means an organization with its own name, assets; transaction office; established or registered for establishment under the provisions of law for the purpose of doing business.
The right to establish and manage an enterprise are closely linked. When an organization or individual has the right to establish an enterprise, the need for enterprise management will arise; leading the enterprise to develop according to the registered industry orientation.
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Secondly
So, Article 17 of the Enterprise Law 2020 stipulates that organizations; and individuals have the right to establish and manage enterprises in Vietnam in accordance with the Law on Enterprises; except for the following cases:
- Firstly State agencies and units of the people’s armed forces use state assets to establish profit-making enterprises for their own agencies or units;
- Secondly Cadres, civil servants and public employees; according to the provisions of the Law on Cadres and Civil servants and the Law on Public Employees;
- Thirdly Officers, non-commissioned officers, professional soldiers, defense workers and officers in agencies and units of the Vietnam People’s Army; officers, professional non-commissioned officers; public security workers in agencies and units of the Vietnam People’s Public Security, except those who are appointed; as authorized representatives to manage the State’s capital contribution in enterprises. or management at a state-owned enterprise;
- Then Professional leaders and managers in state-owned enterprises as prescribed at Point a, Clause 1; Article 88 of this Law; except for those appointed as authorized representatives to manage the State’s contributed capital in the enterprise. other occupations;
Thirdly
The regulation that people with positions and powers working in state agencies; and public non-business units not allowed to establish and manage enterprises; in order to ensure transparency and consistency in enterprise management. The 2018 Corruption Law also stipulates that people with positions; and powers not allowed to establish or contribute capital to enterprises.
- 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;
- If an individual wants to establish an enterprise; the basic conditions must be that he has legal capacity and civil act capacity, that is; he is 18 years old or older and has full civil act capacity. This regulation is to ensure that the person who establishes; and manages the enterprise must be able to run the business; orient and develop the business.
- Persons who are examined for penal liability, held in custody, are serving prison sentences; are serving administrative handling measures at compulsory detoxification establishments; compulsory education establishments or prosecuted by courts. prohibited from holding certain posts, practicing certain professions; or doing certain jobs; other cases as prescribed by the Law on Bankruptcy and the Law on Anti-corruption.
- These subjects belong to the cases of stripped of some citizenship rights for a certain period of time. Therefore, setting up and managing a business is not possible in these cases
Finally
At the request of the business registration authority; the person registering the establishment of an enterprise must submit a judicial record card to the business registration authority;
Organizations commercial legal entities prohibited; from doing business or operating in certain fields; according to the provisions of the Penal Code.
Organizations with legal status have the right to establish and manage enterprises, howeve;, if these legal entities violate the law and prohibited from doing business or operating in certain fields; in this case the legal entity will not set up and manage a business.
Thus, qualified individuals and organizations allowed to establish and manage enterprises in accordance with the Law on Enterprises; except for cases where such enterprises cannot establish by law.
Related questions
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.
Firstly, Business Name: The company name must include two parts in order: Type of business + Name. Specifically, for a single-member 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.
Head office: The head office of the enterprise must locate in the Vietnamese territory. 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).
Owner: The owner of a single-member limited liability company may be an individual or an organization. However, such individual or organization must have full capacity for civil acts and not prohibited by the State from establishing or joining an enterprise.
Also, Business line: enterprises are only allowed to register their business within the scope of business lines which are not prohibited by law. However, for conditional business lines, enterprises must have practice certificates and related legal papers.
Lastly, Charter capital: The capital to establish an enterprise must be suitable to the business line and scale of the enterprise. For enterprises with business lines requiring legal capital, the charter capital must not be lower than the legal capital.
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