When establishing a JSC in Vietnam, enterprises must notice the regulations around its operation. Regulations on information that JSCs must disclose are in fact vital principles. In this article, LSX will give you details of the regulations.
- 2020 Enterprise Law
What is a JSC?
A joint-stock company (JSC) is an enterprise in which the charter capital is divided into equal parts called shares; hence the regulation of Enterprise Law 2020. The company has a minimum number of shareholders of 3 and no maximum limit. Indeed, shareholders are only responsible for the debts and other property obligations to the extent of the amount of capital contributed to the enterprise.
JSCs’ financial report
Accordingly, JSCs must send annual financial statements approved by the General Meeting of Shareholders to competent state agencies; following the law on accounting. In fact, financial statements provide information about the financial position, business situation, and cash flows of an enterprise; meeting the management requirements of business owners, state agencies, and the needs of users in making decisions.
Indeed, the annual financial report includes:
- Accounting balance sheet
- Report on business results
- Statements of cash flows
- Financial statement notes
Hence the regulation in Clause 2, Article 176, 2020 Enterprise Law; JSCs will have to publish the following information on its’ website:
- Company rules
- Curriculum vitae, educational qualifications and professional experience of members of the Board of Directors, Supervisors, Director or General Director of the company
- Annual financial statements approved by the General Meeting of Shareholders
- Annual report on performance evaluation of the Board of Directors and Supervisory Board
JSCs’ changes in the information of shareholders
Basically, JSCs must report any changes on the following information:
- Information about full name, nationality, passport number, contact address, number of shares and type of shares of shareholders being foreign individuals
- Name, enterprise code, head office address, number of shares and types of shares of shareholders being foreign organizations
- Full name, nationality, passport number, contact address of the authorized representative of the shareholder being a foreign organization
On the condition that there are changes in the information of the shareholders, JSCs will have at least 03 working days to notify the Business Registration Office where the company’s head office is located.
Above is the information on the regulations on information that JSCs must disclose in Vietnam. Hope that the article could help you solve your problem. In case you have any questions, please contact Lawyer X for quick and best legal services: 0833102102.
Normally, if your dossier is valid, it will take around 3-4 days to register a Joint-stock Company.
The applicant must pay VND 100,000 in order to register a JSC directly; or free if they apply virtually.