The cost of establishing a company or establishment fees are always a concern of most organizations as well as individuals who plan to establish a company. The following article of LSX will give you the content on the law regulations about charges and fees of establishing a joint-stock company.
Conditions on setting up a Joint-stock company
Before learning about the cost of setting up a joint-stock company, we would like to provide you with the legal requirements for establishing a joint-stock company:
- Must meet the conditions when doing business establishment procedures such as company name, head office address, charter capital, registered business lines…
- Charter capital is divided into equal parts called shares, the value of each share is decided by the company.
- Shareholders are individuals or organizations that own shares. Shareholders are only liable for the amount of contributed capital committed to contributing.
In general, this type of company has more advantages in share transfer, stock issuance, securities trading, and the ability to mobilize capital because the law does not limit the number of shareholders participating in the capital contribution. However, those advantages result in complications of a joint-stock company organizational structure, leading to stricter legal regulations for this type of company.
Fees to establish a Joint-stock company
When performing registration procedures for the establishment of a joint-stock company, individuals and organizations must pay the following expenses:
- Fees and charges payable at the Department of Planning and Investment (registration fee, publication fee);
- Seal making fee (circle seal, title seal, signature seal);
- Digital signature purchase fee;
- Opening a bank account;
- Invoice printing fee;
- Publication fees on enterprise information on national portals;
- Initial tax return service fee;
- Service fee for setting up a business.
- Business establishment fees.
In which, Circular No. 215/2016/TT-BTC dated November 10, 2016, of the Ministry of Finance and Circular No. 130/2017/TT-BTC stipulated businesses to pay fees and expenses to establish a joint-stock company at the Department of Planning and Investment
Other charges and fees pay as to the agreement between the service provider and the customer or according to the fixed price list of the service provider.
Tax fees to pay in the year after the establishment.
In addition to the initial cost of establish a joint-stock company, businesses also need to pay attention to tax payments after business establishment.
- License tax: depends on the company’s charter capital. Charter capital under 10 billion: license tax 2,000,000 VND/year. Charter capital over 10 billion: license tax 3,000,000 VND/year.
- Value Added Tax (VAT). This tax rate is based on the difference between VAT from goods and services sold from red invoices and the company’s cost of purchasing goods and services with red invoices. VAT payable = VAT from Revenue – VAT from Expense. Therefore, in business, investors need to balance input and output costs reasonably to reduce the amount of VAT. However, if the businesses use direct invoices or regular invoices, they do not have to pay.
- Corporate income tax (CIT). Annual corporate income tax ranges from 20% to 25% of corporate profits. Companies pay this tax when the business is profitable and at the end of the financial year. Corporate income tax payable is 20-25% based on the difference (net revenue) between sales of goods as well as services and expenses with valid papers. If the business has a loss, it will not have to pay corporate income tax.
- Environmental Protection tax. Environmental protection tax is used for the purpose of environmental improvement and waste treatment where businesses operate. (If the business does not operate a business that affects the environment, it does not need to pay).
- Import and export tax: Only payable when your business related to the import and export business lines.
- Land use tax: only paid when enterprises lease land from the state.
In addition to the above basic taxes, depending on the type of business, businesses also have to pay additional taxes such as special consumption tax, natural resources tax, etc.
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
Conditions for offering bonds in Vietnam market
What is a Joint-stock company? Conditions to establish in Vietnam?
What is the organizational structure of a Multi-member LLC in Vietnam?
Related questions
From the economic perspective: Establishing a company is the establishment of a business organization when all necessary and sufficient conditions are met, such as individuals and organizations must fully prepare facilities: headquarters; Human resources; material resources; production chains; factory; capital.
On the other hand, from the legal perspective: Establishing an enterprise means a legal procedure that individuals and organizations must perform at a competent state agency.
Conditions on subject:
Legal papers: ID card, passport.
Full capacity for civil acts.
Not fall into cases where the law prohibited subject from establishing a business (Public servant,…)
Determine the number of limited members/shareholders or invest by oneself:
This is an important decision, the number of company members will directly affect the business type.
Consider the business type:
At the present, there are 4 common types of business:
Firstly, Single-member limited liability company
Secondly, Limited liability company with two or more members
Thirdly, Joint-stock company
Fourthly, Sole-proprietorship
Contact LSX
Finally, hope this article is useful for you to answer the question about “Fees to establish a Joint-stock company in Vietnam 2022”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is Fees to establish a Joint-stock company in Vietnam 2022. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
