Shall the business registration authority be responsible for the legitimacy and accuracy of information in the application for enterprise registration in Vietnam?
- Shall the business registration authority be responsible for the legitimacy and accuracy of information in the application for enterprise registration in Vietnam?
- Vietnam: Is providing dishonest information in the enterprise registration application a violation of the law?
- How much is the fine imposed for providing dishonest information in the enterprise registration application in Vietnam?
Shall the business registration authority be responsible for the legitimacy and accuracy of information in the application for enterprise registration in Vietnam?
Pursuant to the provisions of Clause 1 and Clause 3, Article 4 of Decree 01/2021/ND-CP on the rules for enterprise registration:
Rules for enterprise registration
1. The enterprise’s founder or the enterprise shall complete the application for enterprise registration and take legal responsibility for the legitimacy, truthfulness, and accuracy of information therein and reports.
2. In case a limited liability company or a joint-stock company has more than one legal representative, the legal representative who follows enterprise registration procedures must ensure and assume responsibility for performance of his/her rights and obligations as prescribed in Clause 2 Article 12 of the Law on enterprises.
3. The business registration authority is responsible for the legitimacy of the application for enterprise registration, not violations against the law committed by the enterprise before and after the enterprise registration.
4. The business registration authority does not have the responsibility to settle disputes between members or shareholders of the company, or between them with other entities, or between the enterprise and other entities.
5. The enterprise is not required to append a seal on the application form for enterprise registration, notification of changes to enterprise registration, resolutions, decisions and minutes of meeting included in the application for enterprise registration. Appending seal on other documents included in the application for enterprise registration shall comply with relevant laws.
Thus, the business registration authority is responsible for the legitimacy of the application for enterprise registration, not violations against the truthfulness, and accuracy of information in the application.
The enterprise’s founder or the enterprise shall take legal responsibility for the legitimacy, truthfulness, and accuracy of information in the application for enterprise registration and reports.
Shall the business registration authority be responsible for the legitimacy and accuracy of information in the application for enterprise registration in Vietnam? (Image from the Internet)
Vietnam: Is providing dishonest information in the enterprise registration application a violation of the law?
Pursuant to the provisions of Clause 4, Article 16 of the Law on Enterprises 2020 on the prohibited actions:
- Issuing or refusing to issue the Certificate of Enterprise registration against regulations of this Law; requesting the founder to submit additional documents against regulations of this Law; delaying, obstructing, harassing enterprise founders and business operation of enterprises.
- Obstructing the enterprise’s owner, members/partners/shareholders from performing their rights and obligations prescribed in this Law and the enterprise’s charter.
- Doing business as an enterprise without applying for enterprise registration; carrying on busines operation after the Certificate of Enterprise Registration has been revoked or while the enterprise is being suspended.
- Providing dishonest or incorrect information in the enterprise registration application or application for changes to enterprise registration information.
- Declaring false charter capital; failure to contribute adequate charter capital as registered; deliberate contribution of assets with false value.
- Engaging in banned business lines or business lines from which foreign investors are banned; engaging in restricted business lines without fulfillment of conditions or failure to maintain fulfillment of conditions during operation in restricted business lines.
- Frauds, money laundering, terrorism financing.
Thus, providing dishonest or incorrect information in the enterprise registration application or application for changes to enterprise registration information is a prohibited act.
Thus, providing dishonest information in the enterprise registration application is a violation of the law. Violators will be imposed a fine according to the provisions of law.
How much is the fine imposed for providing dishonest information in the enterprise registration application in Vietnam?
Pursuant to the provisions of Article 43 of Decree 122/2021/ND-CP on violations against regulations on preparing applications for enterprise registration:
Violations against regulations on preparing applications for enterprise registration
A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for providing untruthful, inaccurate information in an application for enterprise registration or application for changes to enterprise registration information to obtain the enterprise registration certificate or certificate of changes to enterprise registration information.
A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for providing dishonest information in the enterprise registration application.
*Note: The fines for administrative violations specified above are imposed upon organizations. For the same violation, the fine incurred by an individual is 1/2 (half) that incurred by an organization (according to clause 2 Article 4 of Decree 122/2021/ND-CP)
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