What is a Joint-stock company? Conditions to establish in Vietnam?
The establishment of businesses is becoming popular in Vietnam. The Joint-stock company, a type of business that has been established quite a lot recently, showed its potential in the Vietnamese market. A joint-stock company has the participation of many shareholders. However, establishing a joint-stock company will involve many factors. So, what are the conditions to establish a Joint-stock company? Follow this article for more information.
Legal ground
- Law on Enterprise 2020
Joint-stock company
According to Article 111 of the Law on Enterprise 2020:
Article 111. Joint stock companies
1. A joint stock company is an enterprise in which:
a) The charter capital is divided into units of equal value called shares;
b) Shareholders can be organizations and individuals; the minimum number of shareholders is 03; there is no limit on the maximum number of shareholders;
a) A shareholder’s liability for the company’s debts and liabilities is equal to the amount of capital contributed to the company by the shareholder;
d) Shareholders may transfer their shares to other persons except for the cases specified in Clause 3 Article 120 and Clause 1 Article 127 of this Law.
2. A joint stock company has the status of a juridical person from the day on which the Certificate of Enterprise Registration is issued.
3. A joint stock company may issue shares, bonds and other kinds of securities.
Conditions to establish a Joint-stock company
Name
The structure of the Joint-stock company name includes the business type and the company name. Enterprises can use foreign names or initials.
Besides, the Vietnamese name of the company must include two elements:
- Business type: “Công ty cổ phần” (Joint-stock company) or “CP company”
- Name: A proper name is written with the letters of the Vietnamese alphabet. Also includes F, J, Z, W, numbers, and symbols.
On the other hand, the Foreign name of the company:
- The enterprise name in a foreign language is the name translated from the Vietnamese name into one of the foreign languages in the Latin script. When translating into a foreign language, the proper name of the enterprise may remain the same or be translated in the corresponding means of the foreign language.
- The name in a foreign language of the enterprise is printed or written in a smaller font size than the Vietnamese name of the enterprise at the head office; branch; representative office; business locations of the enterprise or on transaction documents; and publications issued by enterprises.
Head office
The head office of the enterprise must locate in the Vietnamese territory with an identified address including house number, street name, name of commune, ward, township, district, city. In particular, it’s the contact address of the business; and identified by administrative boundaries. In addition, phone number (required); fax number, and email address (if any).
If the place where the head office located does not have a house number or street name. Then company must submit a locality confirmation (that the address does not have a house number or street name) together with the business registration dossier.
Before renting an office in a building/apartment, you should check whether the apartment has legal commercial/office functions before signing.
Business lines
- The company selects the fourth-level economic sector in the Economic Sector System of Vietnam promulgated together with Decision 27/2018/QD-TTg to register the industry and business line in the business registration application.
- For conditional business lines specified in other legal documents, the business owners register business lines according to those legal documents.
- For business lines and industries that are not included in the Economic Sector System of Vietnam but are regulated in other legal documents, the business owners register business lines according to those legal documents.
- In case business lines not included in the Economic Sector System of Vietnam and have not been specified in other legal documents. Then The business registration agency shall consider and record these business lines in the National Business Registration Database if it is not banned by the law. Simultaneously, notify the General Statistics Office or the Ministry of Planning and Investment to add new business lines.
Charter capital
Charter capital means the amount of capital contributed or committed to contribute by members or shareholders within a certain period and recorded in the company’s charter.
Currently, there is no regulation on the minimum amount of charter capital to be contributed when establishing a business; Except for some cases where the law requires Legal capital-the minimum capital to establish an enterprise.
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.
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Related questions
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.
…
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 is a Joint-stock company? Conditions to establish in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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