Is it possible to open two branches of a company in the same district in Vietnam?

Is it possible to open two branches of a company in the same district in Vietnam?

If a company already has one branch in Tien Lu district, Hung Yen, can they open another branch in the same district?

Answer:

Pursuant to Clause 1 Article 45 of the Law on Enterprises in 2020 stipulating registration of branches as follows:

An enterprise may establish branches and representative offices in Vietnam and other countries. An enterprise may have more than one branch and representative office in an administrative division.

According to this regulation, a company can establish one or multiple branches in a locality based on administrative boundaries. Therefore, in your case, the company can open two branches in Tien Lu district, Hung Yen.

Is it possible to open two branches of a company in the same district in Vietnam? - image from internet

Can a company be dissolved based on the shareholders' opinion in Vietnam?

Due to conflicts among shareholders regarding certain issues within the company, many shareholders have expressed their opinions to dissolve the company. In this case, is it possible to proceed with the dissolution procedure?

Answer:

Pursuant to Clause 1 Article 207 of the Law on Enterprises in 2020, an enterprise shall be dissolved in the following cases:

- The operating period specified in the company's charter expires without an extension decision;

- The enterprise is dissolved under a resolution or decision of the owner (for sole proprietorships), the Board of Partners (for partnerships), the Board of Members and the owner (for limited liability companies) or the GMS (for joint stock companies);

- The enterprise fails to maintain the adequate number of members prescribed in this Law for 06 consecutive months without converting into another type of business;

- The Certificate of Enterprise Registration is revoked, unless otherwise prescribed by the Law on Tax administration.

As regulations above, the decision on dissolution of an enterprise is made by the GMS.

The GMS shall consist of all voting shareholders and is the supreme body of a joint stock company (according to Clause 1 Article 138 of the Law on Enterprises in 2020).

Therefore, if the decision to dissolve the company is solely based on the opinions of the shareholders and the company does not fall under any of the remaining cases as stated in the regulations, it does not meet the requirements for dissolution.

Can a company in Vietnam, that has been issued with the dissolution decision, lease out its machinery and equipment?

Can a company in Vietnam, that has been issued with the dissolution decision, lease out its machinery and equipment?

Answer:

Pursuant to Clause 1 Article 211 of the Law on Enterprises in 2020, from the issuance date of the dissolution decision, the enterprise and its executives are prohibited from the following actions:

- Concealing, disguising assets;

- Denying or reducing the creditors’ claims to the debts;

- Convert unsecured debts into debts secured with the enterprise’s assets;

- Concluding new contracts, except for dissolving the enterprise;

- Pledging, donating, leasing out assets;

- Terminating effective contracts;

- Raising capital in any shape or form.

A company, that has been issued with the dissolution decision, is not allowed to lease out its machinery and equipment.

Best regards!