Is the charter a condition for issuance of a license for establishment and operation of a credit institution in Vietnam?

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• Is the charter a condition for issuance of a license for establishment and operation of a credit institution in Vietnam?
• Vietnam: What does a charter of a credit institution include?
• When there is a modification in the Charter of a credit institution that is a limited liability company in Vietnam, which agency must it be sent to?

Is the charter a condition for issuance of a license for establishment and operation of a credit institution in Vietnam?

Pursuant to Article 20 of the Law on Credit Institutions 2010 stipulates the conditions for issuance of a license for establishment and operation of a credit institution as follows:

Licensing conditions

1. A credit institution may obtain a license when fully meeting the following conditions:

a/ Its charter or allocated capital is at least equal to the legal capital;

b/ Its owner is a one-member limited liability company, its founding shareholders or members arc legal entities which arc lawfully operating and financially capable for capital contribution. Its founding shareholders or members arc individuals with full civil act capacity and financially capable for capital contribution.

The State Bank shall provide the conditions for owners of credit institutions being one-member limited liability companies and founding shareholders and members;

c/ Its managers, executives and Control Board members fully meet the criteria and conditions under Article 50 of this Law;

d/ Its charter complies with this Law and other relevant laws;

e/ It has an establishment plan and a feasible business plan which neither affects the safety and stability of the credit institution system nor creates monopoly or restrict competition or create unfair competition within the credit institution system.

Thus, a credit institution may obtain a license when fully meeting the above conditions, which include a charter complying with this Law and other relevant laws.

A credit institution may obtain a license when its charter complies with this Law and other relevant laws.

Is the charter a condition for issuance of a license for establishment and operation of a credit institution in Vietnam? (Image from the Internet)

Vietnam: What does a charter of a credit institution include?

Pursuant to Clause 1 Article 31 of the Law on Credit Institutions 2010 on the charter of a credit institution:

Charter

1. The charter of a credit institution being a joint-stock or limited liability company must not contravene this Law and other relevant laws. A charter must contain the following principal contents:

a/ Name and place of the head office;

b/ Contents and scope of operation;

c/ Duration of operation;

d/ Charter capital, modes of capital contribution and increase and decrease of charter capital;

e/ Tasks and powers of the Shareholders' General Meeting, Board of Directors, Members' Council, Director General (Director) and Control Board;

f/ Modes to elect, appoint and dismiss members of the Board of Directors and Members' Council. Director General (Director) and Control Board;

g/ Full names, addresses, nationality and other basic characteristics of owners and capital contributors, for a credit institution being a limited liability company; and of founding shareholders, for a credit institution being a joint-stock company:

h/ Rights and obligations of owners and capital contributors, for a credit institution being a limited liability company; and of shareholders, for a credit institution being a joint-stock company;

i/ Representative at law;

j/ Principles of finance, accounting, control and internal audit;

k/ Modes to adopt decisions of the credit institution; principles of settlement of internal disputes:

l/ Bases and methods to determine remuneration, salaries and bonuses for managers, executives and Control Board members;

m/ Cases of dissolution;

n/ Procedures for modification of the charter.

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The charter of a credit institution being a joint-stock or limited liability company must contain the following principal contents:

- Name and place of the head office;

- Contents and scope of operation;

- Duration of operation;

- Charter capital, modes of capital contribution and increase and decrease of charter capital;

- Tasks and powers of the Shareholders' General Meeting, Board of Directors, Members' Council, Director General (Director) and Control Board;

- Modes to elect, appoint and dismiss members of the Board of Directors and Members' Council. Director General (Director) and Control Board;

- Full names, addresses, nationality and other basic characteristics of owners and capital contributors, for a credit institution being a limited liability company; and of founding shareholders, for a credit institution being a joint-stock company:

- Rights and obligations of owners and capital contributors, for a credit institution being a limited liability company; and of shareholders, for a credit institution being a joint-stock company;

- Representative at law;

- Principles of finance, accounting, control and internal audit;

- Modes to adopt decisions of the credit institution; principles of settlement of internal disputes:

- Bases and methods to determine remuneration, salaries and bonuses for managers, executives and Control Board members;

- Cases of dissolution;

- Procedures for modification of the charter.

When there is a modification in the Charter of a credit institution that is a limited liability company in Vietnam, which agency must it be sent to?

Pursuant to Clause 3 Article 31 of the Law on Credit Institutions 2010, amended by Clause 18, Article 1 of the Law on amendments to some Articles of the Law on credit institutions 2017:

Charter

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2. Charters of cooperative banks and people's credit funds comply with Article 77 of this Law.

3. A credit institution's charter and its modifications must be sent to the State Bank within 15 days after they are approved.

Thus, a credit institution's charter and its modifications must be sent to the State Bank within 15 days after they are approved

The modifications in charters of credit institutions that are limited liability companies must be sent to the State Bank within 15 days after they are approved.