Nowadays, the model of a single-member limited liability company (LLC) attracts entrepreneurs who start to open their own businesses. However, not everyone clearly understands the type of single-member limited liability company. Besides, many people wonder about the administrative procedure to establish a company. In this article, LSX legal firm informs to you: “Vietnamese procedures to establish Single-member LLC”
Legal ground
- Law on Enterprise 2020
Why establishing a company?
Establishing a business helps entrepreneurs to have a solid legal corridor.
Particularly, a Single-member limited company is suitable for people who want to set up a company on their own.
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.
Single-member LLC
- 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.
Procedures to establish Single-member LLC
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.
Thus, unlike a limited liability company with 2 or more members, the dossiers to establish a Single-member limited liability company will not need a “member list” because there is simply no need for a list of 1 member.
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
What are rights and obligations of the owner of a single-member limited liablity company in Vietnam?
Procedures to set up a Single-member LLC in Vietnam
Dossiers to establish a Single-member LLC in Vietnam
Related questions
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.
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.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Vietnamese procedures to establish Single-member LLC?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is Vietnamese procedures to establish Single-member LLC. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
