Setting up a company is a very common thing these days. Each year, thousands of companies and businesses are established in Vietnam. The purpose of establishing a company is for the business owner to specialize in the organization’s functions. Then, the results will bring profits to business owners and members of the company. Entrepreneurs usually set up company in the partnership type because it have a great potential of development. So, how does the current law specifically regulate partnership companies? How to set up a partnership company? In this article, LSX legal firm would like to provide information about: “Procedures to establish partnership in Vietnam”
Legal ground
- Law on Enterprise 2020
Why establishing a company?
Establishing a business helps entrepreneurs to have a solid legal corridor.
Particularly, a partnership company is only suitable for people who are really close, share the same goal or in a number of business lines with conditions on the type of company.
Establishing a company means expanding your business model. Also, setting up a business will bring you the following benefits:
- Decent: The business that is registered is a manifestation of the legitimacy of the operation. This is the basis for building trust with partners.
- Confident: When entering into a contract as a legal entity, owners can proactively present their licenses/certificates when required.
- Process: The company will have a strict structure and management. This ensures the best interests when operating, expanding, and mobilizing.
Procedures to establish a partnership
Step 1: Prepare dossiers
- Application form for establishment (for the partnership type);
- Charter of the partnership company;
- Personal identification papers of general partners or capital contributors (as individuals): identity card, passport, etc.
- Legal papers related to business registration, operation registration, establishment decision… (for capital contributors as legal entities);
- List of members;
- Authorization document: In case the owner does not directly carry out the procedure.
Step 2: Submit dossiers
Submit the application at the Business Registration Office of the Department of Planning and Investment at the province level where you plan to locate the head office of your Company.
Currently, there are two forms to submit an application:
- Register directly: apply at the “one-stop” department of the Business Registration Office. However, in Hanoi, this method is no longer applied.
- Online business registration: submit your application on the National Business Registration Portal (Address: https://dangkykinhdoanh.gov.vn). After the online application is valid, you will have to go directly to the “one-stop” department to return the scanned copy (hard copy) when submitting it online. However, this method is relatively complicated, requiring you to have skills and knowledge about registering a business account.
Once you have submitted your application, you will receive a receipt for your application. The usual processing time for applications will be 3 working days.
Step 3: Receive result
According to the schedule on the appointment, you return to the “one-stop” department of the Business Registration Office to receive the results. There are two possible scenarios:
- Dossiers valid: You will receive a Certificate of Business Registration as a result and a notification to the tax authorities.
- Dossiers invalid: The Business Registration Office will have a document instructing you to amend the dossiers in accordance with the provisions of the law. After the amendments and supplements to your application according to this guide, then resubmit your application as in Step 2.
Step 4: Post-establishment procedures.
Receiving a Business Registration Certificate is just the first step in putting your company into operation. After that, you have to do the following series of procedures:
- Notice the use of the company’s seal sample.
- Bank account notice (if your company registers a bank account).
- Tax procedures such as license declaration and payment of license fees, Tax on corporate headquarters inspection,…
- Trademark protection (if you need it).
- …
After carrying out these procedures, your Company can go into operation.
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 article
The current procedure to establish a partnership company in Vietnam
Legal Issues You Need to Know about Partnerships in Vietnam
Instructions to convert a Private Enterprise into a Partnership Company in Vietnam
Related questions
– There are least 02 partners that are joint owners of the company and do business under the same name (hereinafter referred to as “general partner”). A general partner shall be an individual whose liability for the company’s obligations is equal to all of his/her assets;
– Also, there can be limited partners in addition to general partners. A limited partner can be an organization or an individual whose liability for the company’s debts is equal to the promised capital contribution.
– General partners have unlimited liability. They must take responsibility for all their assets for the business operations of the company. This liability cannot be limited to any member.
– Limited partners have limited liability for the business debts of the company.
– General partners must not transfer part or all of their contributed capital in the company to another person without the consent of the remaining general partners.
– Limited partners have the right to transfer their contributed capital in the company to another person.
– A partnership may not issue any type of securities. Thus, the partnership’s ability to raise capital is very limited.
– A partnership company has legal status from the date of issuance of the Certificate of Business Registration.
– A notification of enterprise suspension
– The decision and legitimate copy of the minutes of meeting of the Board of members (if the enterprise is a multi-member limited liability company), the company’s owner (if the enterprise is a single-member limited liability company), the Board of Directors (if the enterprise is a joint-stock company), or general partners (if the company is a partnership)
Contact LSX
Finally, hope this article is useful for you to answer the question about “Procedures to establish partnership in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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