04 Conditions for Establishing a Single-Member Limited Liability Company Owned by the State

At Article 4 of the Decree 172/2013/ND-CP, the establishment of a one-member limited liability company is only considered when the following conditions are met:

Illustrative image (source: internet)

- Belonging to the industries, fields, locations considered for the establishment of a one-member limited liability company as stipulated in Article 5 of this Decree.- Ensuring sufficient charter capital as stipulated in Article 6 of this Decree.- Having valid documents as stipulated in Article 7 of this Decree and approved by the Prime Minister of the Government of Vietnam.- The establishment of a one-member limited liability company is consistent with the planning, development strategy of industries, fields, and economic zones.

Additionally, this Decree stipulates that a one-member limited liability company is considered for establishment in the following industries, fields, and locations:

- Industries, fields, and locations directly serving national defense and security as stipulated by the Government of Vietnam;- National power transmission system; multi-purpose hydroelectric plants, nuclear power plants having special significant socio-economic importance associated with national defense and security;- Management and exploitation of the national railway infrastructure, urban railway; national comprehensive airports, international gateway ports;- Air traffic management; national railway, urban railway transport management;- Maritime assurance;- Provision of public postal services;- Publishing (excluding the field of printing and distribution of publications);- Printing, minting money;- Management and exploitation of inter-provincial, inter-district irrigation systems, sea dykes;- Island logistics;- Management and maintenance of dikes, flood diversion and natural disaster prevention works;- Planting and protecting upstream forests, protective forests, and special-use forests;- Industries, fields, and locations serving the stability and strategic socio-economic development of the country in specific periods or other industries, fields, and locations according to the decision of the Prime Minister of the Government of Vietnam.

Furthermore, a one-member limited liability company is considered for establishing a subsidiary as a one-member limited liability company to develop and hold business secrets, technologies directly serving the implementation of primary business tasks of the parent company.

See the full text of the regulation at Decree 172/2013/ND-CP effective from January 1, 2014.

Thu Ba

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