Today, many objects want to contribute capital to businesses in the market. But not all members are allowed by law to make capital contribution. So about the matter “Can civil servants contribute capital to enterprises in Vietnam?” Let’s find out with LSX in the article below.
Legal grounds
- Enterprise Law 2020
- Law on Cadres and Civil servants 2008
Civil servants according to current regulations
Pursuant to Clause 2, Article 4 of the current Law on Cadres and Civil servants. Accordingly, civil servants are Vietnamese citizens, recruited and appointed to ranks, positions, titles, on the payroll, receive salaries from the State budget and belong to the agencies and units specified in Clause 1 of this Article. Decree 06 of 2010 includes:
• In the agency of the Communist Party of Vietnam;
• In the Office of the President, the Office of the National Assembly, the State Auditor;
• Within ministries, ministerial-level agencies and other organizations established by the Government or the Prime Minister;
• In administrative agencies at the provincial and district levels;
• In the People’s Court system, the People’s Procuracy system;
• In agencies of socio-political organizations at the central, provincial and district levels;
• In agencies and units of the People’s Army and People’s Public Security.
In particular, civil servants are currently recruited by the form of recruitment exam, unless they have committed to volunteering for 5 years or more in mountainous, border areas, islands…
At the same time, civil servants must meet a number of criteria and conditions as follows:
• Being 18 years old or older, Having one nationality is Vietnamese nationality;
• Having an application form, a clear resume, and having appropriate degrees and certificates;
• Having good political and moral qualities;
In addition, civil servants must undergo a probationary process to familiarize themselves with the working environment and practice doing the jobs of the recruited positions. In particular, Article 20 of Decree 24 in 2010 clearly states that the probationary period of civil servants includes:
• 12 months if employed as a C-class civil servant;
• 06 months in the case of recruitment into D-class civil servants.
On November 26, 2019, the National Assembly officially approved the Law amending and supplementing the Law on Cadres and Civil Servants with many contents that greatly affect public employees. One of them is the modification of the scope of civil servants.
Accordingly, Clause 2, Article 4 of the current Law is amended by Clause 1, Article 1 of the New Law 2019 in the direction that leaders and managers in public non-business units will no longer be civil servants.
This is completely consistent with the policy of not implementing the civil servant regime in public non-business units in the spirit of Resolution 19-NQ/TW and will build a new salary table according to the job position to replace the salary table. currently stated in Resolution 27-NQ/TW.
However, Clause 19, Article 1 of the 2019 Amended Law also clearly states that civil servants holding leadership and management positions in public non-business units according to the Law and current guiding documents will continue to be implementation of regimes and policies … until the end of the appointment term to hold the current position.
Can civil servants contribute capital to enterprises in Vietnam?
According to the provisions of the Enterprise Law, cadres and civil servants have the right to contribute capital, purchase shares or purchase capital contributions to joint-stock companies, limited liability companies and partnerships, except those who are not allowed contribute capital to enterprises in accordance with the law on cadres and civil servants without the right to establish and manage enterprises in Vietnam.
In fact, depending on the type of business, the contribution has different meanings. Since it is not clear what type of business you intend to contribute capital to, we advise different businesses for your reference in your situation:
Article 17 of the Enterprise Law 2020 provides as follows:
“Article 17. Right to establish, contribute capital, purchase shares, purchase contributed capital and manage enterprises
1. Organizations and individuals have the right to establish and manage enterprises in Vietnam according to the provisions of this Law, except for the case specified in Clause 2 of this Article.
2. The following organizations and individuals do not have the right to establish and manage enterprises in Vietnam:
a) State agencies and units of the people’s armed forces use state assets to establish profit-making enterprises for their own agencies or units;
b) Cadres, civil servants and public employees according to the provisions of the Law on Cadres and Civil servants and the Law on Public Employees;
c) Officers, non-commissioned officers, professional soldiers, defense workers and employees 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 appointed as authorized representatives to manage the State’s capital contribution in enterprises. or management at a state-owned enterprise;
d) Professional leaders and managers in state enterprises as prescribed at Point a, Clause 1, Article 88 of this Law, except for persons appointed as authorized representatives to manage the State’s contributed capital in the State enterprise. other enterprises;
d) Minors; persons 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;
e) Persons who are being examined for penal liability, detained, are serving prison sentences, are serving administrative handling measures at compulsory detoxification establishments, compulsory education establishments or are being held by the Courts ban 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.
At the request of the business registration authority, the enterprise establishment registrant must submit a judicial record card to the business registration authority;
g) Organizations being commercial legal entities are prohibited from doing business or operating in certain fields under the provisions of the Penal Code.
3. Organizations and individuals have the right to contribute capital, purchase shares, or purchase capital contributions to joint-stock companies, limited liability companies and partnerships in accordance with this Law, except for the following cases:
a) State agencies and units of the people’s armed forces use state assets to contribute capital to enterprises for their own profit;
b) Subjects not allowed to contribute capital to enterprises under the provisions of the Law on Cadres and Civil servants, the Law on Public Officials, and the Law on Anti-corruption.
4. Private profit for their agency or unit specified at Point a, Clause 2 and Point a, Clause 3 of this Article is the use of income in any form obtained from business activities, from capital contribution or share purchase. shares, purchase capital contributions for one of the following purposes:
a) Distributing in any form to some or all of the persons specified at Points b and c, Clause 2 of this Article;
b) Supplementing to the operating budget of the agency or unit in contravention of the law on state budget;
c) Establishing a fund or adding to the fund to serve the private interests of the agency or unit.”
Services of LSX
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, LSX’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all brand information of client LSX will be 100% confidential.
Please contact us immediately if you have any questions about “Can civil servants contribute capital to enterprises in Vietnam?”
Contact LSX
Finally, hope this article is useful for you to answer the question about “Can civil servants contribute capital to enterprises in Vietnam?” If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Please see more
- Rights and obligations of overseas Vietnamese foreign-invested enterprises using land in Vietnam
- The differences between a cooperative and an enterprise in Vietnam.
- Types of enterprises subject to audit in Vietnam
Frequently asked questions
Công chức có thể thành lập và tham gia hộ kinh doanh. Nghị định số 78/2015 / NĐ-CP của Chính phủ quy định, hộ kinh doanh cá thể được đăng ký kinh doanh tại một địa điểm, sử dụng dưới 10 lao động và chịu trách nhiệm bằng toàn bộ tài sản của mình về hoạt động kinh doanh.
Not allowed to contribute capital as a general partner of a partnership company
Not a member of a limited company
Not a member of the board of directors in a joint-stock company.
Officials are not entitled to establish and manage enterprises in Vietnam, but may only contribute capital but not participate in the management and administration of limited liability companies, joint-stock companies, partnerships, cooperatives, etc. private hospitals, private schools and private scientific research organizations, unless otherwise provided for by specialized laws.
Conclusion: So the above is Can civil servants contribute capital to enterprises in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
