The most suitable capital rate to establish a limited liability company (LLC)
How much capital is needed to start a limited company? What is the minimum capital to set up a single-member limited liability company (LLC)? The minimum capital to set up a multi-member limited liability company? What is the maximum capital to set up a limited company? How much capital is enough for the business line? LSX legal firm provides this article to answer the question: “The most suitable capital rate to establish a limited liability company”
Legal grounds
- Law on Enterprise 2020
- Decree 76/2015/ND-CP
How much capital is needed to establish a LLC?
If an enterprise registers for a business line that does not require legal capital, the law does not stipulate a minimum capital level to establish a company.
In fact, many business units have registered the company’s charter capital of 1 million VND, the law does not prohibit this. However, registering a low rate of capital makes it difficult when they do business and work with partners, banks, and tax agencies because they often don’t trust this business and limit the transactions. Therefore, companies should register at the appropriate and suitable rate for reality conditions.
If an enterprise registers a business line that requires legal capital to operate; then the minimum capital to set up a company is equal to the prescribed level of that business line.
Charter capital
Charter capital according to the latest Law on Enterprise is the total amount of capital contributed or committed to contributing by members or shareholders within a certain period and recorded in the company’s charter.
Besides, about the liability for the capital of the company upon its establishment. Depending on the type of business establishment, the company should register the appropriate capital.
Charter capital affects the annual license tax of the enterprise as follows:
- Pay license tax 2,000,000 VND/year if the charter capital is 10 billion VND or less
- Pay license tax 3,000,000 VND/year if the charter capital is over 10 billion VND
The law does not stipulate minimum and maximum charter capital. However, when establishing a business, the owner should consider the minimum capital level carefully. The charter capital should not be too low to create trust with partners when doing business.
Fees for LLC establishment
Business registration fee: Registration of establishment, change of business registration contents as well as re-issuance of business registration certificate: 100,000 VND.
Publication fee:
- Provide information on the Certificate of Business Registration; Certificate of branch operation, representative office, business location: 20,000 VND.
- Provide information on the application of business registration; financial statements of all business kinds: 40,000 VND.
- Synthesis report about the enterprise: 150,000 VND.
- Publication of business registration: 300,000 VND.
- Providing business information by account from 125 copies/month or more: VND 4,500,000.
Thus, for newly established businesses, they have to pay 2 fees and charges as follows:
- Registration of business establishment: 100,000 VND.
- Publication of business registration contents: 300,000 VND.
In addition to the above, businesses will have to pay some additional fees after establishing the company, such as:
- Fee for engraving company seal, title seal (optional)
- Fees for digital signatures and e-invoices
- Annual license tax payment fee
How much capital is needed to establish a multi-member LLC?
The minimum capital required to establish a multi-member LLC depends on what business line the business will register.
If the company registers a business line that does not require legal capital, the members and owners can register at the rate they want.
On the other hand, if an enterprise registers a business line that requires legal capital to operate; then the minimum capital to set up a company is equal to the prescribed level of that business line.
How much charter capital is needed?
Depending on the economic ability and the purpose of the company, the charter capital is decided specifically on the following grounds:
- Financial capability;
- Scope and scale of operations;
- Actual operating costs of the company after its establishment
- Projects signed with partners…
Vietnamese legislation stipulates the limitations period for fully contributing capital for newly established enterprises is 90 days from the date of issuance of the business registration certificate. In case the enterprise has not fully contributed the registered capital by the expiration of the above time limit, it must notify the business registration agency.
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.
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 articles
Conditions for establishing a limited liability company in Vietnam
Related questions
– Maintenance costs on tax issues.
– Maintenance costs in terms of operation and management.
Firstly, register the investment project
Secondly, apply for Certificate of investment registration
Thirdly, apply for the certificate of business registration
Fourthly, publish the content of the business registration
Then, registered business stamp
Next, notice of use of stamp
Equally important, open bank account
After all, the post licensing procedures
Contact LSX
Finally, hope this article is useful for you to answer the question about “The most suitable capital rate to establish a limited liability company (LLC)”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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