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. Single-member limited liability company (LLC) is the type that many investors chose for their business. So, what are the dossiers and procedures to establish a Single-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
- Single-member limited liability company is an enterprise run by an organization or an individual as the owner. The company owner is responsible for the company’s debts and other property obligations to the extent of the company’s charter capital.
- A Single-member LLC has legal status from the date of issuance of the Certificate of Business Registration.
- Single-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 Single-member LLC?
This type of company has many advantages such as:
Firstly, the biggest advantage of a Single-member LLC is that the owner has the right to decide on all issues related to the company’s operations. So, decisions are made quickly.
Secondly, the owner of a single-member limited liability company is only responsible for the company’s operations to the extent of the capital contributed to the company. As a result, the owner takes little risk.
Thirdly, a Single-member LLC has legal status from the date of issuance of the Certificate of Business Registration.
Fourthly, single-member limited liability companies may raise capital through borrowing and crediting from individuals and organizations. The limited company also has the right to issue bonds. However, the company needs to meet the conditions to do so.
Procedure for Single-member LLC establishment
Step 1: Prepare application for business registration
An enterprise registration dossier for a single-member limited liability company include:
- An application for enterprise registration.
- Company charter
- Copies of legal papers of the legal representative, authorized person, owner as an individual, owner as an organization (except for state-owned organization).
- The original certificate of business household registration and a valid copy of the tax registration certificate in case of conversion from a household business.
- 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.
- Notify seal sample.
- Register for import and export codes.
- 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.
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.
Increase the owner’s contributed capital.
Mobilization from loans: organizations and individuals, bond issuance.
The ability to raise capital is limited because this type of business is not allowed to issue shares. Therefore, to raise capital, businesses can only choose to contribute capital or receive capital from others.
The company owner is only entitled to withdraw capital by transferring part or all of the charter capital to other organizations or individuals. In case the owner transfers part of the capital or receives capital from a new member, it must change the type of enterprise.
Finally, hope this article is useful for you to answer the question about “Procedure to establish a Single-member LLC in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: firstname.lastname@example.org