In the present time, establishing a single-member limited liability company (LLC) is the ideal choice for many people. However, many of them do not know how to set up a single-member LLC. So, LSX legal firm will provide you with advice on establishing a single-member LLC in Vietnam. Therefore, LSX law firm will advise you on Advisory on establishing a single-member LLC in Vietnam
Legal ground
- Law on Enterprise 2020
What is a single member LLC?
According to Clause 1, Article 74, Enterprise Law 2020; A single-member limited liability company is an enterprise owned by an organization or individual (hereinafter referred to as the company owner). The company owner is responsible for the company’s debts and other property obligations to the extent of the company’s charter capital.
Advisory content
Obviously, the single-member limited liability company model has its own advantages and disadvantages. In this part, we would like to list them out to help you answer the question of whether to establish a single-member limited company or not.
Advantages
- Above all, the company owner will have full control over all matters related to the company’s operations (organizational structure, capital, business activities, etc).
- The owner is only responsible for the company’s finances to the extent of the amount of capital contributed to the company. Consequently, the risk for the owner is trivial.
- The model is simple and easy to manage.
- Free to choose the lines that are suitable for the company’s business without limitation, as long as they are not in the restricted or prohibited industries.
Disadvantages
The ability to raise capital is limited because this type of business is not allowed to issue shares. Therefore, to raise capital, businesses can only choose to contribute capital or receive capital from others.
The company owner is only entitled to withdraw capital by transferring part or all of the charter capital to other organizations or individuals. In case the owner transfers part of the capital or receives capital from a new member, it must change the type of enterprise.
Steps for setting up a single-member LLC
Step 1: Prepare application for the registration
According to Article 21 of Law on Enterprise 2020, application for registration of a limited liability company includes:
1. The enterprise registration application form.
2. The company’s charter.
3. The list of members.
4. Copies of:
a) Legal documents of members who are individuals and legal representatives;
b) Legal documents of members that are organizations, documents about designation of authorized representatives and their legal documents.
Legalized copies of legal documents of the members that are foreign organizations.
c) Lastly, the Certificate of Investment Registration of foreign investors as prescribed by the Law on Investment.
Step 2: Then, submit the application
You can submit the application in 2 methods:
- Submit the application in person at the one-stop Department of Planning and Investment where the head office of the company located.
- On the other hand, you can submit online at https://dangkykinhdoanh.gov.vn
Step 3: Lastly, receive result
Contents that need to be amended and supplemented for business household founders. Finally, a business registration certificate will be issued.
LSX legal firm’s service on business establishment
When establishing a company, everyone must carry out legal procedures at a competent business registration agency (according to the Enterprise Law 2020). The process of setting up a business includes many different steps and stages. So if you are not familiar with the law, the process can take a lot of time.
With a team of experienced, reputable and professional consultants; The company is always ready to support and solve legal problems with customers.
Besides, you don’t need to do the paperwork yourself. We guarantee to help you prepare your application effectively and legally.
In addition, you will not have to spend time preparing documents; apply, or receive results. Indeed, we will help you do it smoothly.
After all, LSX provides services with the hope that customers can experience the service in the best way. In addition, we ensure that the cost will be the most suitable and economical for customers.
Related Posts
- Limited Liability Company registration procedure under Vietnamese Law
- Conditions for legal firm establishment in Vietnam
- converting a multiple-member LLC into a single-member LLC procedure in Vietnam
Related questions
The following information shall be provided in the enterprise registration application form:
1. The enterprise’s name;
2. The enterprise’s headquarters, phone number, fax number, email address (if any);
3. The enterprise’s business lines;
4. The charter capital (or investment capital if the enterprise is a sole proprietorship);
5. Types of shares, face value of each type and total authorized shares of each type if the enterprise is a joint stock company;
6. Tax registration information;
7. Expected quantity of employees;
8. Full name, signature, mailing address, nationality and legal documents of each partner (for partnerships) or the owner (for sole proprietorships);
9. Full name, signature, mailing address, nationality and legal documents of the legal representative (for limited liability companies and joint stock companies).
The List of members/partners of a limited liability company/partnership; the list of founding shareholders and foreign shareholders of a joint stock company shall contain:
Firstly, full names, signatures, nationalities, mailing addresses of members/partners/founding shareholders/foreign shareholders that are individuals;
Secondly, names, EID numbers, addresses of headquarters of members/partners/founding shareholders/foreign shareholders that are organizations;
Thirdly, full names, signatures, nationalities, mailing addresses or legal representatives or authorized representatives of members/partners/founding shareholders/foreign shareholders that are organizations;
Fourthly, stakes and values thereof, holdings, types, quantities and values of assets contributed as capital, capital contribution time of each member/partner (for limited liability companies and partnerships); types and quantities of shares, holdings, types, quantities and values of assets contributed as capital, capital contribution period of each founding shareholder and foreign shareholder (for joint stock companies).
Contact LSX
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