While studying at university, what should you do when you have the idea of a Start-up? Many talented young people want to try starting a business during their time at the university. In fact, there has been a lot of success. So, can people establish a company during university? LSX legal firm provides this article: “Can I establish a company during university in Vietnam?”
Legal ground
- Law on Enterprise 2020
The right to establish a company
Establishing a company allows individuals/organizations to have status in transactional relationships, or simply perform an apparatus for their business operations. As long as businesses satisfy the conditions, organizations and individuals can have the right to establish and contribute capital to establish a company.
According to Clause 1, Article 17 of the Law on Enterprise 2020: “Organizations and individuals have the right to establish and manage enterprises in Vietnam in accordance with this Law”.
However, there are subjects with special powers in state agencies or people with criminal records who do not have the moral qualities or conditions to run the company. The law restricts these people on the right to establish, contribute capital and manage the company:
Clause 2, Article 17 of the Law on Enterprise 2020
“2. 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 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 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; has the limited legal capacity or are incapacitated, are not able to control/her 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 a business operation or banned from certain fields as prescribed by the Criminal Code.”
Allow subjects such as Cadres, civil servants, and public employees,… to establish businesses will create opportunities for acts of corruption, and abuse of power.
Therefore, if required, business registration agencies will require founders to submit their criminal records during business registration.
Can I establish a company during university?
The answer to whether a university degree holder can establish a company or not depends on the business line that the company registers to operate.
At present, there are two kinds of business lines: conditional business lines and non-conditional business lines. The difference between a conditional business line and an unconditional business line is the requirements that founders must satisfy to be allowed by the law to establish and manage businesses operating in conditional business lines.
For business lines without conditions:
The procedure for setting up a company simply means a procedure with the business registration agency (Business registration office) with the following documents according to general regulations such as Minutes of meeting, establishment decision, personal profile, etc., together with the obligation of fees and charges. Thus, the establishment of a company in this condition is very simple.
Therefore, the fact that you are in college or not does not affect your right to start a company as long as you meet the requirements on financial and legal age. Also, you must not fall into cases of Clause 2, Article 17 of the Law on Enterprise as mentioned above.
For business lines with conditions:
The process and requirements in these cases are somewhat more complicated. Legal capital requirements (such as real estate business, debt collection, etc.), university degrees and diplomas (such as law offices, etc.), professions that require margin,…
So, to establish companies such as a Law firm, you have to graduate from university and have full degrees as well as certificates needed for a lawyer profession.
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.
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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.
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).
Contact LSX
Finally, hope this article is useful for you to answer the question about “Can I establish a company during university in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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