Capital contribution is the contribution of assets to form the charter capital of the company to become the owner or common owners. How are assets valued according to regulations? Let’s inquire into this issue with LSX Lawfirm !
Enterprise Law 2020
Cases that need valuation of contributed assets
Individuals and organizations can contribute capital to enterprises with assets such as: Vietnam Dong, freely convertible foreign currency, gold; value of land use rights, value of intellectual property rights, technology, secrets. technical decisions, other assets has valuation in Vietnam Dong.
If the assets contributed as capital are not Vietnam Dong; freely convertible foreign currencies, or gold, they must be valued by members, founding shareholders or a professional appraisal organization and expressed in Vietnam Dong.
So, assets contributed as capital other than Vietnam Dong such as self-converting foreign currencies and gold must be valued when contributing capital.
The subject of asset valuation contributed capital
Entities competent to value contributed assets include:
Firstly, ounding members and shareholders determine the price according to the principle of consensus;
Secondly, professional valuation organization established in accordance with the law.
Besides, If a professional valuation organization makes a valuation a majority of members and founding shareholders will consider approving the value of assets contributed as capital.
Valuation of assets contributed as capital during operation:
- Firstly, owner, Board of members of a limited liability company, the partnership, the Board of Directors of the joint-stock company and the capital contributors agree on the valuation.
- Secondly, professional valuation organization.
In case a professional valuation organization makes a valuation; the capital contributor and the enterprise will consider approving the value of assets contributed as capital.
Contributed capital is the amount of assets that members of the company contribute to form the charter capital of the company. That number of times of capital contribution may be one time or many times;
as long as within the time allowed by law; and accordingly the commitment to contribute capital to the company and the charter capital.
Assets contributed as capital are Vietnam Dong, freely convertible foreign currency; besides gold; land use rights; Intellectual property rights; technology; Technical know-how; Other assets valued in VND
Members must contribute capital contribution to the company in full and with the right type of assets as committed when registering for business establishment within 90 days; from the date of issuance of the enterprise registration certificate.