Vietnam: At least 02 founding shareholders of securities company shall be organizations

According to Clause 2 Article 74 of the Law on Securities 2019 of Vietnam, requirements for issuing the securities trading license to a securities company on shareholders and contributing members are specified as follows:

- Shareholders and contributing members that are individuals are qualified for establishment and management of enterprises in Vietnam as prescribed by the Law on Enterprises of Vietnam;

- Shareholders and contributing members that are organizations shall be lawfully operating juridical persons that have profitable business in 02 years prior to the year in which the license is applied for; the latest annual financial statement has been audited and received unqualified opinions;

- Shareholders and contributing members holding at least 10% of charter capital of 01 securities company; their related persons (if any) do not hold more than 5% of charter capital of another securities company;

- Shareholders and contributing members that are foreign investors shall satisfy the requirements specified in Article 77 of this Law.

Besides, regarding quantities of shareholders and contributing members, at least 02 founding shareholders and contributing members shall be organizations. The owner of the securities company that is a single-member limited liability company shall be an insurer or commercial bank or foreign organization that satisfies the requirements specified in Clause 2 Article 77 of the Law on Securities 2019. Total capital contributed by organizations shall be at least 65% of charter capital; capital contributed by insurers and commercial banks shall be at least 30% of charter capital.

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Ty Na

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