Company Establishment Procerdures Under Law on Enterprise 2020
Establishing a company or company establishment procedure is the concern of many individuals and organizations when planning to build their own property. This is an important turning point, marking a new milestone for each individual and organization.
There are many different types of legal companies/enterprises in Vietnam that are recognized by the government. As a result, people who want to register a company need to understand the features of each type, thereby making a decision to match with the development vision of the company. According to Law on Enterprise 2020, the type of company will be included:
- Limited Liability Company;
- Joint Stock Company;
- Private Enterprise.
Before setting up a company, the founder shoud consider the following issues:
- Name of the company: the founder of a company or enterprise must not set a name of enterprise that is identical or confusingly similar to the name of another company registered in the National enterprise registration database.
- The address of headquarter: the head quater of the enterprise needs to be located in the Vietnamese territory, which is the contact address of the enterprise and is determined according to the geographical boundaries of the administrative unit; have phone number, fax number, and email.
- Business lines:
- According to regulations, enterprises have the right to do any business that is not prohibited by law and need to be registered with the Business Registration Office before operating;
- Before establishing, it is necessary to pay attention to whether the business lines you intend to do business is on the list of prohibited industries or conditional business in order to conduct business in accordance with the provisions of the law.
- Charter capital:
- Charter capital is the amount of capital contributed or committed to contribute by members or shareholders within 90 days. Unless the company registered line of business requires legal capital, the charter capital must not be lower than this level of legal capital;
- Enterprises should choose a reasonable level of charter capital since the owner of the company will take responsibility on the capital they had committed. Registration should not be too low or too high because the procedure to increase the company’s charter capital is relatively simple, while the procedure for reducing the company’s charter capital is relatively complicated and requires a certain time.
1. Procedure for company establishment:
- Step 1: Prepare the dossier for company establishment procedure;
- Step 2: Submit the dossier for company establishment at the Department of Planning and Investment (DPI);
- Step 3: Engrave the seal;
- Step 4: Perform initial tax registration procedure at Tax authority.
2. The dossier that needs to be prepared includes:
- Application for business registration;
- Drafting the company charter;
- Personal identification of members and Legal representative;
- List of shareholders, founding members;
- Power of attorney (if any).
3. Consultancy service for company establishment at Pham Consult
With a wealth of experience in consulting for company establishment and other legal issues after establishment such as taxes, labor, mandatory insurances,… Pham Consult provides consulting services to establish companies with the price-competitive, assisting you in:
- Consulting conditions, procedures, and other issues on establishing a business such as the name of the company, business lines, location of operation, special conditions for foreign investors…;
- Preparing the establishment dossiers; setting up the company charter in accordance with the orientation and agreement between the founders, meeting the role as a lawyer for the company;
- Being on behalf of clients to submit and receive the results at state agencies;
- Contacting agencies of translation and certificated docs;
- Consulting, explaining to the state agencies in case of arisen problems (often in the establishment dossier of companies with foreign elements);
- Consulting procedures after establishment (Marking and registering stamp, initial tax declaration, social insurance registration).
Please feel free to contact us as the following mailing address as soon as you have any idea to establish a company. Pham Consult always desires and undertakes that shall let you experience the best service ever with the price-competitive.