During the development of Vietnam’s economy, it has shown a very promising future for startups. Nowadays, many people want to open a company of their own, not only to make a profit but also to start the desire to become a businessman. Besides, the new draft Law has allowed higher education institutions to set up businesses and companies. However, many people are still confused about this problem. So, in this article, LSX legal firm will answer the question: “Can a university set up a business in Vietnam?”
Legal grounds
- Law on Higher Education 2012
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Can a university set up a business?
The draft amending and supplementing the Law on Higher Education is being proposed by the Ministry of Education and Training for public opinion. One of the new points included in the draft is allowing higher education institutions to set up businesses and companies.
Article 14 of this draft amended Law allows higher education institutions to set up businesses and companies to promote scientific research applied in practice (not business).
This represents the institutionalization of the idea in the Government’s Resolution 19-2017/NQ-CP to have mechanisms and policies and create favorable conditions for the establishment of multi-owned enterprises in universities to carry out business activities on application as well as commercialization of research results, and provision of public non-business services.
Conditions for setting up a business
In order to establish an enterprise and register a business for an enterprise in some form, people have to meet certain requirements prescribed by law. The conditions include subject conditions, registered business lines, and professions; enterprise establishment capital; business name, and head office… Specifically as follows:
The subject of business establishment
Except for the cases specified in Clause 2, Article 17 of the Enterprise Law 2020, all organizations and individuals have the right to establish and manage enterprises in Vietnam.
Article 17. The rights to establish, contribute capital, buy shares/stakes and manage enterprises
- 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;
d) Executive officers and managers of state-owned enterprises prescribed in Point a Clause 1 Article 88 of this Law, except those who are designated as authorized representatives to manage state-owned stakes in other enterprises;
dd) Minors; people with limited legal capacity; incapacitated people; people having difficulties controlling their behaviors; organizations that are not juridical persons;
e) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, have limited legal capacity or are incapacitated, are not able to control his/her own behaviors, are banned by the court from holding certain positions or doing certain works; other cases prescribed by the Law on Bankruptcy and the Anti-corruption Law.
If requested by the business registration authority, the applicant shall submit the judicial records;
g) Juridical persons that are banned from the business operation or banned from certain fields as prescribed by the Criminal Code.
The registration of business lines
Enterprises can freely conduct business in lines not prohibited by law as prescribed in Clause 1, Article 7 of the Law on Enterprises 2020. Except for the following prohibited industries:
- Firstly, trading in narcotics specified in Appendix I of the Investment Law 2020;
- Secondly, trading in chemicals and minerals specified in Appendix II of the Law on Investment 2020;
- Thirdly, trading in specimens of plants; wild animals from the wild as specified in Appendix I to the Convention on International Trade in Endangered Species of Wild Fauna and Flora; specimens of forest plant species; forest animals; endangered aquatic products; precious; Rare Group I has a natural origin as specified in Appendix III of the Investment Law 2020;
- Fourthly, prostitution business;
- Fifthly, buying and selling human, tissue, corpse, human body parts, and human fetus;
- Business activities related to human cloning;
- Fireworks business;
- Lastly, debt collection service business.
Capital to establish a business
Capital requirements when establishing a business will depend on the business lines of the company. In case the business line of the business is a normal industry, there will be no minimum or maximum capital requirements. Then, enterprises can freely choose the level of charter capital to operate their business.
Business name
- The Vietnamese name of an enterprise shall contain two elements in order:
a) The type of enterprise;
b) The proper name. - The type of enterprise shall be “công ty trách nhiệm hữu hạn” or “công ty TNHH” for limited liability companies; “công ty cổ phần” or “công ty CP” for joint stock companies; “công ty hợp danh” or “công ty HD” for partnerships; “doanh nghiệp tư nhân”, “DNTN” or “doanh nghiệp TN” for sole proprietorships.
- The proper name shall consist of letters in the Vietnamese alphabet, the letters F, J, Z, W, numbers, and symbols.
- The enterprise’s name shall be displayed at the headquarters, branches, representative offices, and business locations of the enterprise and printed or written on transaction documents, records, and printed materials published by the enterprise.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
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
Can retired officials set up a business in Vietnam?
Procedures for changing transport business license 2022 in Vietnam
Regulations on alcohol business license in Vietnam
Related questions
Has a factory as well as production line to carry out production in order to apply the research results. The factory environment will become an on-campus internship environment for students.
Firstly, use of any name that identical or confusingly similar to another enterprise’s registered name.
Secondly, use of the name of a state authority, the People’s military unit, political organization, socio-political organization, socio-political-professional organization, social organization, social-professional organization as part or all of an enterprise’s name, unless it is accepted by that authority, unit or organization.
Thirdly, use of words or symbols that against the country’s history, culture, ethical values and good traditions.
Firstly, the enterprise’s name and EID number;
Secondly, the enterprise’s headquarters address;
Thirdly, full name, signature, mailing address, nationality and legal document number of the legal representative (for limited liability companies and joint stock companies), each partner (for partnerships), the owner (for sole proprietorships). Full name, mailing address, nationality and legal document number of each member that is an individual; name, EID number and headquarters address of each member that is an organization (for limited liability companies);
Lastly, the charter capital (or investment capital if the enterprise is a sole proprietorship).
Contact LSX
Finally, hope this article is useful for you to answer the question about “Can a university set up a business in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is Can a university set up a business in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
