Delayed Capital Contribution Due to the Epidemic: Will the Enterprise Be Penalized?
Section 29, Article 4 of the Enterprise Law 2014 stipulates:
Charter capital is the total value of assets contributed or committed to be contributed by members when establishing a limited liability company or partnership company; it is the total nominal value of shares sold or registered for purchase when establishing a joint-stock company.
According to the provisions of Articles 48, 74, 112, and 212 of the Enterprise Law 2014, company members must fully and accurately contribute the types of assets as committed within 90 days from the date of issuance of the Enterprise Registration Certificate. For limited liability companies registered before July 1, 2015, members and the owner of the company must contribute capital within the period specified in the company's charter.
Clause 4, Article 17 of the Enterprise Law 2014 strictly prohibits the following acts: falsely declaring charter capital, failing to contribute the registered charter capital; deliberately valuing capital contributions at incorrect values.
Thus, if the registered charter capital is not fully contributed, the enterprise must register to adjust the charter capital to the actual contributed capital value, and this requirement is not excluded due to epidemics. If not, the enterprise will be penalized according to Article 25 of Decree 50/2016/ND-CP. To be specific:
A fine ranging from VND 1,000,000 to VND 5,000,000 for registering changes to the contents of the Enterprise Registration Certificate, Branch Operation Registration Certificate, Representative Office Registration Certificate, or Business Location Registration Certificate past the regulated period from 01 to 30 days.
A fine ranging from VND 5,000,000 to VND 10,000,000 for registering changes to the contents of the Enterprise Registration Certificate, Branch Operation Registration Certificate, Representative Office Registration Certificate, or Business Location Registration Certificate past the regulated period from 31 to 90 days.
A fine ranging from VND 10,000,000 to VND 15,000,000 for registering changes to the contents of the Enterprise Registration Certificate, Branch Operation Registration Certificate, Representative Office Registration Certificate, or Business Location Registration Certificate past the regulated period from 91 days or more.
Remedial measures: Mandatory registration of changes to the contents of the Enterprise Registration Certificate in accordance with the regulations for violations specified in Clause 1, Clause 2, and Clause 3 of this Article.
Sincerely!
