What is a Vietnamese enterprise? What acts are enterprises prohibited from performing?
What is a Vietnamese enterprise? What acts are enterprises not allowed to do from 2021 onwards? Specifically, what prohibited acts are enterprises prohibited from performing? Based on which regulations?
What is a Vietnamese enterprise?
According to Clause 12, Article 4 of the Enterprise Law 2020 (effective from January 1, 2021), there are provisions as follows:
A “Vietnamese enterprise” means an enterprise that is registered in accordance with Vietnam’s law and has its headquarters located within Vietnam.
In addition, in this Article, a “state-owned enterprise” means an enterprise more than 50% charter capital or voting shares of which is held by the State as prescribed in Article 88 of this Law.
What is a Vietnamese enterprise? What acts are enterprises prohibited from performing? (Image from the Internet)
What acts are enterprises prohibited from performing in Vietnam?
According to Article 16 of the Enterprise Law 2020 stipulating the prohibited acts:
1. 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.
2. Obstructing the enterprise’s owner, members/partners/shareholders from performing their rights and obligations prescribed in this Law and the enterprise’s charter.
3. 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for enterprise registration; carrying on busines operation after the Certificate of Enterprise Registration has been revoked or while the enterprise is being suspended.
4. Providing dishonest or incorrect information in the enterprise registration application or application for changes to enterprise registration information.
5. Declaring false charter capital; failure to contribute adequate charter capital as registered; deliberate contribution of assets with false value.
6. 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.
7. Frauds, money laundering, terrorism financing.
Currently, there are 7 groups of acts not allowed in Article 17 of the 2014 Enterprise Law.
Therefore, compared to the current Enterprise Law, this content does not have too many changes, the new law specifies more clearly prohibited acts in group 6 "Engaging in business lines from which foreign investors are banned". In addition, the new law also adds that enterprises are prohibited from "terrorism financing".
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