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. Establishing a company – bringing your business idea into reality is a very important decision. However, to succeed in setting up a business, entrepreneurs need to prepare certain steps. In this article, LSX would like to provide instructive information about: “What does a company establishment need in Vietnam?”
Legal ground
- Law on Enterprise 2020
What does a company establishment requires?
Conditions on subject
- Legal papers: ID card, passport.
- Full capacity for civil acts.
- Not fall into cases where the law prohibited subject from establishing a business (Public servant,…)
Determine the number of limited members/shareholders or invest by oneself
This is an important decision, the number of company members will directly affect the business type.
Consider the business type
At the present, there are 4 common types of business:
- Single-member limited liability company: Owned by an individual or an organization (can hire a legal representative);
- Limited liability company with two or more members: from 2 to no more than 50 limited partners, members can be individuals/organizations (can hire legal representatives);
- Joint-stock company: Having 3 or more individuals or organizations and an unlimited number of shareholders (can hire legal representatives);
- Sole-proprietorship: Owned by 1 individual, with unlimited liability by his/her assets (This type is chosen in a small number due to high legal risk).
What do you need to establish a company
Company’s name
Must not overlap or confuse with the name of a business that has already registered on the National Database. The company name must be written in Vietnamese; may include numbers and symbols; pronounceable and has at least two elements: Type of business + Company name.
The naming trend of startups is often related to the business lines they intend to operate and also the potential lines in the future. Also, you can name your business with English words.
Examples:
NTVTAX TAX AGENT LLC
VAN THANH LLC
Head office address
The address of the company headquarter is determined in 4 components
“House number with street name + name of ward/commune/town + name of district/town/provincial city + central city/province”
Business lines
Charter capital
Definition of “company establishment”
From the economic perspective: Establishing a company is the establishment of a business organization when all necessary and sufficient conditions are met, such as individuals and organizations must fully prepare facilities: headquarters; Human resources; material resources; production chains; factory; capital.
On the other hand, from the legal perspective: Establishing an enterprise means a legal procedure that individuals and organizations must perform at a competent state agency.
Meaning of starting a business
- For individuals and organizations: Legally recognized by the State, protected by law in the business operations. Have the right to perform business in industries that are not prohibited by law.
- The economy: When a business is established, that individual or organization has contributed to the development of the country’s economy.
- For society: Become popularly known to the whole society through brand promotion, which contributes to the development of the business.
Therefore, the establishment of enterprises and companies is extremely important in the overall development of the country’s economy.
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 articles
Conditions for establishing a garment company at Vietnam
Dossiers to establish a Single-member LLC in Vietnam
Procedures to establish Joint-stock company under Vietnamese legislation
Related questions
Increase the owners’ contributed capital.
Also, mobilize capital from loans: organizations and individuals, bond issuance.
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.
Contact LSX
Finally, hope this article is useful for you to answer the question about “What does a company establishment need in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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