Increase of State Capital Investment in Enterprises: In Which Cases?

1. Cases of state capital investment to establish new state-owned enterprises:

- Newly established state-owned enterprises shall, based on the actual state capital allocated (for newly established enterprises without construction investment projects), and state capital allocated according to the final settlement of completed works approved by authorized bodies (for newly established enterprises on the basis of handing over construction investment projects), record the increase in owner's investment capital in the enterprise's accounting books. If the actual investment capital of the state is lower than the registered charter capital at the time of enterprise establishment, the enterprise must register to adjust the charter capital in the enterprise registration certificate to the actual state investment according to the provisions of the Law on Enterprises 2014.- In cases where the investment capital for charter capital approved in the establishment plan is divided into multiple phases, the enterprise must adjust the actual contributed charter capital in the enterprise registration certificate in accordance with the provisions of the Law on Enterprises 2014.

2. Cases of supplementary state capital investment in operating state-owned enterprises:

Operating state-owned enterprises receiving assets transferred from other entities, invested with state budget-originated capital, or receiving state support funds (relocation support, rearrangement, handling of land and buildings, infrastructure investment support in industrial zones) to execute construction investment projects, upgrade, or renovate production and business facilities, shall, based on the authorized decision on asset transfer and the asset handover record, as well as the settlement of state support funds (for project execution), record the increase in state capital at the enterprise and adjust the actual contributed charter capital in the enterprise registration certificate according to the provisions of the Law on Enterprises 2014.

3. Cases of state capital investment in joint-stock companies and limited liability companies with two or more members:

- Based on the approved dossier requesting supplementary investment in charter capital at joint-stock companies and limited liability companies with two or more members, and after the state has made the additional investment (including cases where dividends and profits distributed according to the state capital portion are used for additional investment); or in cases where joint-stock companies and limited liability companies with two or more members use post-tax profits, development investment funds, share premium (for joint-stock companies), and other funds for increasing charter capital in accordance with legal regulations.- The representative body of the owner shall direct the representative to request joint-stock companies and limited liability companies with two or more members to record the increase in the owner's contributed capital (the value of additional state capital investment in the company), simultaneously providing a written notice of the actual total state capital invested (contributed) in the company and the number of shares held by the state (for investments in joint-stock companies) after the company increases its charter capital, and send it to the representative body of the owner for monitoring and management.

Details at Circular 219/2015/TT-BTC effective from February 15, 2016.

- Ngoc Duyen -

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