06 preferential policies for public non-business units converted into joint stock companies in Vietnam

According to Article 36 of the Decree No. 150/2020/NĐ-CP of the Vietnam’s Government, public non-business units converted into joint stock companies are entitled to the following preferential policies:

(1) Joint-stock companies converted from public non-business units are entitled to the same preferential policies as newly established enterprises.

(2) To enjoy preferential registration fees in accordance with the Law on Fees and Charges and guiding documents.

(3) To be entitled to re-sign land lease contracts, rent houses and structures from state agencies in accordance with the law on land and other relevant laws.

(4) To participate in the provision of public services when satisfying the conditions under current state regulations on ordering and bidding for the supply of public non-business products and services using the state budget from ordinary expenses.

(5) For welfare works that are kindergartens, preschools, infirmaries and other welfare assets invested with the Welfare Fund, they shall be transferred to the trade union at the joint-stock company for management and use for serving the collective of employees in a joint-stock company (Note: Housing for officials and employees invested by the welfare fund of public non-business units shall be transferred to the local housing management agency for management)

(6) Public non-business units, when converting to joint-stock companies, are entitled to incentives for scientific and technological activities and policies to encourage socialization as prescribed.

Thus, according to the above regulations, from February 15, 2021, when a public non-business unit is converted into a joint stock company, it will enjoy the above 06 preferential policies.

View more details at the Decree No. 150/2020/NĐ-CP of the Vietnam’s Government, effective from February 15, 2021.

Ty Na

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