Establish a Multi-member LLC under Vietnamese Law on Enterprise 2020
Currently, the epidemic situation is complicated all over the world. However, the need to establish a business increases day by day. Establishing a company – bringing your business idea into reality is a very important decision. However, to succeed in setting up a business, entrepreneurs need to prepare certain steps. Choosing a type for your company is among the decisive procedure. In this article, LSX legal firm would like to give you the information about: “Establish Multi-member LLC under Vietnamese Law on Enterprise 2020”
Legal ground
- Law on Enterprise 2020
Characteristics of a Multi-member LLC
Members
A limited liability company with 2 or more members has from 2 to 50 members (organizations or individuals). The company must make a member register immediately after granted the Certificate of Business Registration. The member register can be in paper form, or electronic form; record the number of members and the amount of capital contributed by each member.
The company must promptly update the change of members in the member register at the request of the relevant members under the provisions of the company’s charter. Then, the company keeps the member register at the head office of the company.
Management structure
A multi-member LLC has:
- Board of Members;
- Chairman of the Board of Members;
- Director or General Director.
The company must establish a Control Board when the establishment capital is 100% State capital or having 50% of charter capital or total voting shares.
In fact, limited liability companies with 2 members to less than 11 members that are not established by the State, with no State capital, did not establish a control board as prescribed in the 2014 Enterprise Law. Companies often set up an audit committee that operates under the direct supervision of the Chairman of the Board of Members to review the company’s issues in the most effective way.
Legal status
A limited liability company with two or more members has legal status from the date of issuance of the business registration certificate.
Issuance of shares and bonds
This type of enterprise is not allowed to issue shares; except for the case of conversion into a joint-stock company.
However, the Company may issue bonds to raise capital when fully meeting the provisions of the law and the company’s charter.
Dossiers to establish a Multi-member LLC
The following documents need to be prepared:
- Business registration application form.
- Company charter.
- List of Members.
- Copies of the following documents: Legal papers for members as individuals or legal representatives; Power of attorney, legal papers of an authorized representative of members as organizations; For members being foreign organizations, copies of legal papers of the organization must be consular legalized, and also investment registration certificate for foreign investors in accordance with 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 articles
- Procedure to set up a Joint-stock company under Vietnam’s Enterprise law
- Procedures for offering shares to the public of a joint-stock company in Vietnam
- How to establish a Joint-stock company in Vietnam?
Related questions
To establish a company, the business has to prepare a valid set of documents:
Firstly, the Business registration application form.
Secondly, the Company charter
Thirdly, List of founding members/shareholders (According to the form issued by the Ministry of Planning and Investment).
Lastly, the business owner’s identity papers.
Method to submit the application
In the entire Department of Planning and Investment of provinces and cities nationwide, there are currently 02 (two) methods of business registration documents, including:
Submit business registration applications directly at the One-Stop Department of the Department of Planning and Investment where the company located.
submit online: https://dangkykinhdoanh.gov.vn
This type of company has many advantages such as:
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.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Establish Multi-member LLC under Vietnamese Law on Enterprise 2020”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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