In modern society, the economy is growing day by day, resulting in the increase of demand to establish a company. So what should you keep in mind when setting up a company? What are the conditions and dossiers to establish a LLC or Joint-stock company? LSX legal firm provides this article to answer the question of “What do you need to establish a company in Vietnam?”
Legal grounds
- Law on Enterprise 2020
- Decree 47/2021/ND-CP
Notes for business establishment
- Choose the type of business that suits your actual conditions.
- Name the company.
- Address to locate the company’s headquarters.
- Choose suitable business lines.
- Select the appropriate level of charter capital.
- Prepare to pay the tax corresponding to the registered charter capital.
- Select a qualified legal representative to run the business.
- Prepare application for business registration.
….
What do you need to establish a single-member LLC?
Single-member limited liability company (LLC) is an enterprise owned by an organization or an individual. The owner is responsible for the company’s debts and other property obligations to the extent of the company’s charter capital.
Conditions
- Entity: Have the full capacity for civil acts; Not prohibited to establish an enterprise specified in Clause 2, Article 17 of the Law on Enterprises 2020 (Civil servants, public employees…).
- Company 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.
- Business lines: Before the establishment, check carefully whether the law prescribed the lines of business the company intends to do in the list of prohibited or conditional business or not.
- Charter capital: Charter capital is the capital contributed or committed to contributing by members within 90 days. The law does not require proof of capital when establishing unless the company’s registered line of business requires legal capital, then the charter capital must not be lower than the legal capital.
Application for business registration
- Business registration application form;
- Company charter;
- Other documents depending on particular cases such as power of attorney;…
What do you need to establish a multi-member LLC?
Multi-member limited liability company (LLC) owned by an individual/organization with individuals as Legal Representative. The number of members is from 2-50. The company has legal status and limited liability to the extent of capital contribution. The owner has full authority to decide on the management of the company after fulfilling all legal obligations.
Organizational structure: Board of members, Chairman of the board of members, Director or General Director, Supervisory Board (if the company has 11 or more members).
Conditions
Basically, the conditions for establishing a multi-member LLC are the same as a single-member LLC:
- Entity: Have the full capacity for civil acts; Not prohibited to establish an enterprise specified in Clause 2, Article 17 of the Law on Enterprises 2020 (Civil servants, public employees…).
- Company 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 + Personal name.
- Business lines: Before the establishment, check carefully whether the law prescribed the lines of business the company intends to do in the list of prohibited or conditional business or not.
- Similarly important, charter capital: Charter capital is the capital contributed or committed to contributing by members within 90 days. The law does not require proof of capital when establishing unless the company’s registered line of business requires legal capital, then the charter capital must not be lower than the legal capital.
Application for business registration
Although the steps for business registration of the two types of LLC are the same, the application for the establishment of a limited liability company with 2 or more members has some differences.
- Copy of ID card of members and legal representative of the company.
- Application for business registration (the standard form of the Department of Planning and Investment).
- The complete Charter of the company: Name of the company, business lines, address, capital contributors, capital contribution ratio, legal representative, and the chairman of the Board of Members.
- Lastly, list of members. When establishing a multi-member LLC, the legal representative and members must sign in this list.
What do you need to establish a Joint-Stock Company?
Conditions
The Law on Enterprise 2020 stipulates that a joint-stock company is established by at least 3 shareholders. Accordingly, there must be at least 3 individuals or organizations involved in the establishment of the business.
Besides, you need to learn about these regulations when establishing a joint-stock company:
- Company’s name
- Company’s address
- Business lines
- Charter capital
- Legal representative
Application for business registration
- An application for business registration with the signature of the legal representatives.
- List of founding shareholders with full personal information, capital contribution ratio, number of shares owned, etc., signed by shareholders as well as legal representatives.
- Company charter signed by all shareholders.
- Also, authenticated copy of ID card/passport of the legal representative and shareholders (as individuals) is needed.
- Lastly, authenticated copy of the certificate of business registration/establishment decision, ID card/passport of the authorized representative, and corresponding authorization papers if the shareholders are organizations.
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.
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Related questions
At present, Vietnam’s law on enterprise does not stipulate the required level of charter capital that a company needs to register when it is established (except for the case of a company operating in industries with prescribed capital and deposit). Therefore, the company can freely choose the level of charter capital.
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 “What do you need to establish a company in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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