New Procedures to Establish a Joint Stock Company in Vietnam 2020

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A Joint Stock Company is a type of business entity that’s also known as a shareholding company in Vietnam. This is a type of company where the shares are owned by more than three shareholders.

In this type of company, the shareholders will be eligible to own stock in proportion to the shares that they own. Unlike the limited liability company (LLC), the joint stock company is allowed to issue both preference and ordinary shares and then list them in the public stock exchange.

Recently, the government of Vietnam has made changes to the procedures for establishing a joint stock company in the country. So here are the latest updates according to the new regulations when it comes to establishing and registering a joint stock company in Vietnam.

Documents Required When Establishing a Joint Stock Company in Vietnam

Below are the documents that must be submitted when registering a joint stock company in Vietnam:

👉 1. Application for enterprise registration in accordance with the form that was stated in Appendix I-1 to Decree 122/2020/ND-CP.

👉 2. Company’s draft charter. It must include the complete name and signature of the founding shareholder.

👉 3. Commitment to achieving environmental and social goals.

👉 4. A decision from the competent authority that permits the transformation of a social protection institution or charity fund into a social enterprise.

👉 5. Valid copies of the following documents:

• Valid ID card or citizen card. The passport can also be used.
• Certificate of business registration and a written authorization that must be enclosed in personal identification papers of the organization’s authorized representative.
• Registration of the certificate of investment in cases when the enterprise is established or has participated in the establishment by a foreign investor of a foreign investor following Vietnam’s Law on Investment.

👉 6. If the person submitting the dossier is not the owner of the enterprise, the authorized person should submit a valid copy of the following identification papers:

• For Vietnamese citizens, they should send a copy of their valid ID card, citizen card, and passport.
• If it’s a foreigner, they should submit a foreign passport or other valid papers in absence of a foreign passport.

All these documents must be enclosed with a written authorization before individuals will be allowed to carry out procedures to register the joint stock company.

Procedures for the Establishment of a Joint Stock Company

Once you have all the documents required, here are the steps to follow to register your company:

👉 1. Submit your application. There are two ways to do this:

• Send it directly to the Business Registration Office of Vietnam’s Department of Planning and Investment in the area where the business is located.
• If it’s not possible to apply personally, you can register online at the official website of the government https://dangkykinhdoanh.gov.vn/. You’ll be asked to sign with a public digital signature or use the business registration account.

For those whose businesses are based in Hanoi and Ho Chi Minh, the application should be done online.

👉 2. For direct application:

• The legal representative or authorized person that will carry out the registration procedure should submit the enterprise registration dossier and pay for the cost of business registration at Vietnam’s Business Registration Office.
• Upon receiving the dossier, the Business Registration Office will issue a receipt.

👉 3. For applications that are submitted electronically using a public digital signature:

• The legal representative or authorized person will declare the company information, download the electronic document, and sign the application digitally, and in accordance with the process as stated by the National Business Registration Portal.
• After the registration is completed, the legal representative will be given a receipt.
• If the application is approved, the Business Registration Office will send the information to the tax authority and a business code will be automatically generated. Once the business code is received from the tax authority, the Business Registration Office will issue the business registration certificate.

In case the application is not approved for some reason, the Business Registration Office will send a notification to the dossier to request for modification.

👉 4. Here are the steps for the online submission of documents through a business registration account:

• The legal representative or authorized person will declare the information, download the electronic documents, and a business registration account will be granted.
• In case the dossier is not accepted, they will request for an amendment of the registration or to submit a supplement. But if the application is valid, the Business Registration Office will forward the information to the tax authority in order for the business code to be generated. They will also notify the enterprise about this.
• Upon receiving the notice from the Business Registration Office, the company’s authorized representative will have to submit a paper enterprise registration dossier along with the receipt from the Business Registration Office. The representative can submit these requirements through the main or in person.

👉 5. The final step is to get the results of the application from the Business Registration Office.

For further inquiries, please feel free to contact us : info@vietnamimmigration.org