Vietnam Corporate Law: Regulations of Business Conditions
What conditions must be met for a business operation? What is the current Vietnam corporate law on business conditions? The following article will answer the above questions of customers about business conditions in accordance with the law as follows.
The concept of business conditions in Vietnam corporate law
Clause 2, Article 7 of the 2005 Enterprise Law stipulates: “Business conditions are requirements that an enterprise must have or must fulfill when conducting business in a specific line of business, expressed by a business license or certificate. meet all business conditions, practice certificates, professional liability insurance certificates, legal capital requirements, or other requirements”.
Law on business conditions
Clause 2, Article 7 of the 2005 Enterprise Law stipulates: “For industries and trades that must be met by the investment law and relevant laws, an enterprise may only conduct such business when there are sufficient conditions to do so. prescribed conditions”. Accordingly, each business line has different conditions that need to meet different conditions as prescribed by Vietnam corporate law.
Clauses 1 and 2, Article 8 of Decree No. 102/2010/ND-CP detailing the implementation of a number of articles of the Law on Enterprises with provisions on business conditions for conditional business lines as follows:
- Conditional business lines and business lines and business conditions shall be applied in accordance with provisions of relevant laws, ordinances, decrees, or decisions of the Prime Minister (hereinafter collectively referred to as laws and regulations). specialized law).
- Business conditions are expressed in the following forms:
- Business license;
- Certificate of eligibility for business;
- Practicing certificate;
- Certificate of professional liability insurance;
- Certification of legal capital;
- Other approvals of competent state agencies;
- Other requirements that an enterprise must fulfill or must obtain in order to gain the right to do business in that line or trade without any confirmation or approval in any form by a competent state agency.
In essence, a business license (GPKD) and certificate of business eligibility are both documents issued by a competent state agency, allowing a business entity to conduct one or more business activities. certain. However, they have the following differences: A business license is a type of document issued to limited business lines. Therefore, there are enterprises that meet the business conditions prescribed by law but because it is a limited business line, it may still not be granted a business license. A certificate of business eligibility is a type of certificate issued to an enterprise so that the enterprise is allowed to operate when fully meeting the business conditions prescribed by law.
A practice certificate can be understood as a document issued by a competent state agency or a professional association authorized by the state to an individual who has sufficient professional qualifications and experience in a certain profession.
A professional liability insurance certificate is a certificate of the legal existence of an insurance contract.
Confirmation of legal capital is the minimum capital required to establish an enterprise as prescribed by law.
You can read the previous article here: Visa to Vietnam Fee: Visa Application Fee
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Q: What is the currency in Vietnam?
The currency in Vietnam is the Vietnamese dong (VND). The exchange rate as of February 2023 is around 23,000 VND to 1 USD.
Q: What are the main industries driving Vietnam’s economy?
Vietnam’s economy is driven by several key industries, including manufacturing, agriculture, and services.
Q: What is the current state of the economy in Vietnam?
Vietnam’s economy has been experiencing rapid growth in recent years, with a 7.11% growth rate in 2019 before being impacted by the COVID-19 pandemic in 2020.