Due to the complicated development of the epidemic situation, travel is limited so preparing documents for business registration is difficult as people cannot access the best business consulting services. Recently, many people have the need to establish a multi-member limited liability company. However, to set up a business, entrepreneurs have to go through certain steps. In this article, LSX legal firm will inform you: “Application for registration of a Multi-member LLC in Vietnam”
Legal ground
- Law on Enterprise 2020
Multi-member limited liability company (LLC)
According to Clause 1, Article 46 of the Law on Enterprise 2020:
Article 46. Multi-member limited liability companies
1. A multiple-member limited liability company means an enterprise that has 02 – 50 members that are organizations or individuals. A member’s liability for the enterprise’s debts and other liabilities shall be equal to the amount of capital that member contributed to the enterprise, except for the cases specified in Clause 4 Article 47 of this Law. The member’s stake (contributed capital) may only be transferred in accordance with Articles 51, 52 and 53 of this Law.
Conditions to establish a Multimember LLC
- The number of members contributing capital must not exceed 50 and must have at least two members.
- Operate the business lines that are not prohibited by law. For conditional business lines, companies have to satisfy the prescribed conditions.
- Those who do not meet the conditions for establishing a multi-member limited liability company: individuals or organizations working in the military; persons being examined for penal liability; minors; persons with restricted or incapacitated civil acts.
- Besides, the company name must include the type of business and its name. Must not use duplicate company names or similar with registered names (Articles 37, 38, 41 of the Law on Enterprise 2020).
- The head office of a multi-member limited liability company must locate in the territory of Vietnam, identified according to the geographical boundaries of the administrative unit (Article 42 of the Law on Enterprise 2020).
Charter capital and Legal capital
Assets invested in the enterprise must conform to the provisions of law, under legal ownership or right of investors. Article 105 of the Civil Code 2015 provides: “Property comprises objects, money, valuable papers and property rights”. Also, Article 115 of this law stated: “Property rights are rights which can be valued in money; including property rights to subjects of intellectual property rights; right to use land and other property rights”.
Businesses must-have charter capital to establish a company. The rate of charter capital depends on each individual and organization that participated in the establishment. The charter capital of a limited liability company with two or more members upon enterprise registration means the total value of the capital contributed by members committed to contributing to the company.
On the other hand, Legal capital only required for certain business lines. For the case of a company conducting business lines with conditions on legal capital or deposit; then the charter capital when establishing an LLC with two or more members must be at least equal to the legal capital or deposit as prescribed.
Application for registration of a Multi-member LLC
According to Article 21 of the Law on Enterprise 2020, The application for registration of a limited liability company includes:
Firstly, The enterprise registration application form.
Secondly, The company’s charter.
Thirdly, The list of members.
Lastly, Copies of:
a) Legal documents of members as individuals and legal representatives;
b) Legal documents of members as organizations, documents about the designation of authorized representatives, and their legal documents.
Legalized copies of legal documents of the members as foreign organizations.
c) The Certificate of Investment Registration of foreign investors as prescribed by the Law on Investment.
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 article
Establish a Multi-member LLC under Vietnamese Law on Enterprise 2020
Form of decision to establish a Multi-member LLC in Vietnam 2022
Registration of a multi-member limited liability company in Vietnam
Related questions
Firstly, the members of a multi-member limited liability company are only responsible for the company’s operations to the extent of the capital contributed to the company. As a result, the members take little risk.
Secondly, the members are usually people who know and trust each other. Therefore, the management and operation of the company is not too complicated.
Thirdly, the mode of capital transfer is strictly regulated; so investors can easily control the change of members.
Fourthly, members who want to transfer capital will have to give priority to the remaining members of the company. This limit the penetration of outsiders into the company.
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.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Application for registration of a Multi-member LLC in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is Application for registration of a Multi-member LLC in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
