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Procedure for Multi-member LLC establishment

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Procedure to establish a Multi-member LLC in Vietnam

by Quang Minh
written by Quang Minh

The economic development of Vietnam currently growing stronger and stronger in the modern world. Nowadays, business is very simple; all you need is a little capital, passion, experience, and capacity; Then you can start a business. A limited liability company with two or more members attracts the interest of many people. So, what are the dossiers and procedures to establish a Multi-member LLC? LSX legal firm provides this article to give you instructive information about this problem.

  • Law on Enterprise 2020
  • Decree 01/2021/ND-CP

Multi-member LLC

  • A limited liability company with two or more members is an enterprise with 02 to 50 members who are organizations and individuals.
  • Members are responsible for debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise. The member’s capital contribution can only be transferred under regulations.
  • A Multi-member LLC has legal status from the date of issuance of the Certificate of Business Registration.
  • Multi-member limited liability companies may issue bonds, but cannot issue shares. Except for the purpose of converting into a Joint Stock Company.

Why establish a Multi-member LLC?

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.

Procedure for Multi-member LLC establishment

Step 1: Prepare application for business registration

An enterprise registration dossier for a multi-member limited liability company include:

  1. An application for enterprise registration.
  2. Company charter
  3. Copies of legal papers of the legal representative; authorized person; members as individuals; members as organizations. In case the members are foreign organizations/investors, there must be investment registration certificates. Also, copies of legal documents must be consular legalized.
  4. List of members.
  5. Authorization document: In case the owner does not directly carry out the procedure.

Step 2: Submit the application

  • At the Business Registration Authorities
  • Through Post Office
  • Submit online

Step 3: carry out procedure after the establishment

  • Procedures for Tax, Social insurance, Labor registration.
  • Registration of branches, representative offices, and business locations.
  • Then, notify the seal sample.
  • Register for import and export codes.
  • Equally important, assets valuation of contributed capital. Carrying out procedures for transferring registered property ownership; land use rights, unregistered ownership assets.
  • Lastly, satisfy and commit to comply with the conditions of the business line.

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

Registration of a multi-member limited liability company in Vietnam

Registration to change members of multi-member LLC in Vietnam

Dossier of licensing of insurance LLC establishment in Vietnam

How can a Multi-member limited liability company raise capital?

Increase the owners’ contributed capital.
Mobilization from loans: organizations and individuals, bond issuance.

What is a single member LLC?

According to Clause 1, Article 74, Enterprise Law 2020; A single-member limited liability company is an enterprise owned by an organization or individual (hereinafter referred to as the company owner). The company owner is responsible for the company’s debts and other property obligations to the extent of the company’s charter capital.

Contact LSX

Finally, hope this article is useful for you to answer the question about “Procedure to establish a Multi-member LLC in Vietnam”. If you need any further information, please contact  LSX Law firm: +84846175333 or Email: hoangson@lsx.vn

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