What are procedures for increasing the charter capital of a single-member limited liability company in 2024 in Vietnam?

What are procedures for increasing the charter capital of a single-member limited liability company in 2024 in Vietnam?

Pursuant to Article 51 of the Decree 01/2021/ND-CP, the procedures for increasing the charter capital of a single-member limited liability company in Vietnam are as follows:

Step 1: Submit the charter capital increase dossier at the Business Registration Office of the Department of Planning and Investment where the company's head office is located.

Step 2: After receiving the business registration dossier, the Business Registration Office issues a Receipt Note, checks the validity of the dossier, and issues the Certificate of Business Registration for the company.

Step 3: The company carries out public notification on the National Business Registration Portal (The procedures for changing the charter capital and the procedures for publicizing the business registration information can be carried out simultaneously).

What are procedures for increasing the charter capital of a single-member limited liability company in 2024 in Vietnam? - Image from Internet

What are methods of increasing the charter capital of a single-member limited liability company in 2024 in Vietnam?

Pursuant to Article 87 of the Law on Enterprises in 2020 stipulating increasing, decreasing charter capital as follows:

Increasing, decreasing charter capital

1. A single-member limited liability company may increase its charter capital when its owner contributes capital or raises capital from other persons. The owner shall decide on the specific increase and the method.

2. In case of raising capital from other persons, the company shall be converted into a multiple-member limited liability company or joint stock company. To be specific:

a) In case of conversion into a multiple-member limited liability company, a notification of change in enterprise registration information shall be submitted within 10 days from the day on which the change in charter capital is complete;

b) In case of conversion into a joint stock company, follow the instructions in Article 202 of this Law;

3. A single-member limited liability company may decrease its charter capital in the following cases:

a) Part of the contributed capital is returned to the company’s owner after the company has operated for at least 02 consecutive years from the enterprise registration date and the company is able to fully pay its debts and other liabilities after the return of capital;

b) Charter capital is not fully and punctually contributed by the owner as prescribed in Article 75 of this Law.

A single-member limited liability company may increase its charter capital when its owner contributes capital or raises capital from other persons.

What is the minimum charter capital of a single-member limited liability company in Vietnam?

Pursuant to Article 75 of the Law on Enterprises in 2020 stipulating contributing capital to establish the company as follows:

Contributing capital to establish the company

1. The initially registered charter capital of a single-member limited liability company is the total assets promised by the owner and shall be written in company's charter.

2. The owner shall contribute adequate and correct assets as promised when applying for enterprise registration within 90 days from the issuance date of the Certificate of Enterprise Registration. The time needed to transport or import the contributed assets and for completing ownership transfer procedures will be added to this 90-day period. During this period, the owner shall have rights and obligations that are proportional to the promised capital.

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As regulations above, the initially registered charter capital of a single-member limited liability company is the total assets promised by the owner and shall be written in company's charter.

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