VI Charter capital is the total value of assets contributed or committed to be contributed by members when establishing a limited liability company, is the total par value of shares sold or registered to buy when establishing an enterprise. for joint stock companies. The level of charter capital may change during the operation of the enterprise, depending on the business situation and decisions of investors. Implementing procedures to increase the company’s charter capital during operations is the right of the enterprise to meet the needs of business development and expansion. After changing to increase the company’s charter capital, the enterprise must announce the change information on the national business information portal, the business registration office of the Department of Planning and Investment to grant the enterprise a business license. new business.
1. Forms of increasing charter capital:
For LLCs with 2 or more members: Clause 1, Article 68 of the Law on Enterprises stipulates that LLCs with 2 or more members can increase capital in two cases: Increasing members’ capital contributions or receiving members’ capital contributions. new pill.
Enterprises need to complete the increase in charter capital before carrying out the capital increase registration procedure to ensure the amount of increased capital to avoid the case of not contributing enough in reality after registering the increase.
After completing the actual increase in charter capital, the enterprise carries out procedures to register a change in the enterprise’s charter capital according to the increased capital amount.
2. Documents to register charter capital:
Documents to increase charter capital for a limited liability company with two or more members include:
• Application for change of business registration
• Decision to increase capital of the Board of Members
• Minutes of meetings of the Board of members
• Confirmation of capital contribution of new members (in case of accepting new members)
• Personal authentication notarized copy of new member
• Power of attorney for organizations and individuals to carry out procedures
3. Order and procedures for registering to increase charter capital:
Step 1: Submit application to increase charter capital
The enterprise sends a notice to the business registration office where the enterprise is registered. The content of the notification is specified in Clause 1, Article 51 of Decree 01/2021/ND-CP including:
Name, business code, tax code or Business Registration Certificate number (in case the enterprise does not have a business code or tax code);
Full name, address, nationality, ID card number, passport or other legal personal identification specified in Article 10 of this Decree or establishment decision number, business code of each member for limited liability companies with two or more members, of general partners for partnerships;
The capital contribution ratio of each member for a limited liability company with two or more members or of each general partner for a partnership;
Registered charter capital and changed charter capital; time and form of capital increase and decrease;
Full name, nationality, ID card or passport number or other legal personal identification specified in Article 11 of this Decree, permanent residence address and signature of the legal representative of the company or Authorized general partner for a partnership company.
Accompanying the above Notice must be a written decision and a valid copy of the meeting minutes of the Board of Members for limited liability companies with two or more members, and the General Meeting of Shareholders for joint stock companies. part; Decision of the owner of a one-member limited liability company on changing charter capital.
Decisions, meeting minutes of the Board of members or the General Meeting of Shareholders and decisions of the company owner must clearly state the amended content in the company’s charter.
In case the General Meeting of Shareholders approves the issuance of shares for sale to increase charter capital, at the same time assign the Board of Directors to carry out procedures for registering to increase charter capital after the end of each share offering. Accompanying the above notice, the registration dossier to change charter capital must have the following documents as prescribed in Clause 3, Article 51 of Decree 01/2021/ND-CP:
Resolution and copy of the minutes of the General Meeting of Shareholders on the offering of shares to increase charter capital, clearly stating the number of shares offered and assigning the Board of Directors to carry out procedures for registering an increase in charter capital. rate after the end of each share sale;
Resolutions, decisions and copies of meeting minutes of the Board of Directors of joint stock companies on registration to increase the company’s charter capital after the end of each share sale.
Decisions and meeting minutes must clearly state the amended content in the company’s charter.
Step 2: Receive the results of increasing the company’s charter capital
Upon receiving the notice, the Business Registration Office will issue a receipt and register capital increase to the enterprise within 3 working days from the date of receipt of complete and valid documents.
4. Notes after increasing charter capital:
After registering a change in charter capital, the enterprise must announce the change information on the national business portal within 30 days from the date of change.
LLC with two or more members and the company must change the business registration content within 10 days from the date of completing the change in charter capital.
After registering a change in charter capital, the enterprise must announce the change information on the national business portal within 30 days from the date of change.
LLC with two or more members and the company must change the business registration content within 10 days from the date of completing the change in charter capital.
5. Pham Consult’s charter capital increase consulting service
With many years of experience consulting for domestic businesses and foreign direct investment projects, Pham Consult provides consulting services to increase charter capital at competitive prices, supporting you:
• Consulting on conditions, procedures and issues arising when increasing charter capital according to law;
• Prepare all necessary documents in bilingual (Vietnamese and English) to ensure foreign investors can easily monitor and evaluate work progress (if customers request)
• Support customers with notarization, consular legalization and notarized translation;
• Submit and receive results at state agencies on behalf of customers;
• Consulting and explaining to state agencies when problems arise.
If you are interested in changing the charter capital of your business and still have many problems with this procedure, please contact us via the following information for free consultation. Pham Consult always wants and commits to providing customers with the best services and support to help you optimize operating costs to serve your business goals.
With many years of experience consulting for domestic businesses and foreign direct investment projects, Pham Consult provides consulting services to increase charter capital at competitive prices, supporting you:
• Consulting on conditions, procedures and issues arising when increasing charter capital according to law;
• Prepare all necessary documents in bilingual (Vietnamese and English) to ensure foreign investors can easily monitor and evaluate work progress (if customers request)
• Support customers with notarization, consular legalization and notarized translation;
• Submit and receive results at state agencies on behalf of customers;
• Consulting and explaining to state agencies when problems arise.
If you are interested in changing the charter capital of your business and still have many problems with this procedure, please contact us via the following information for free consultation. Pham Consult always wants and commits to providing customers with the best services and support to help you optimize operating costs to serve your business goals.
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