Vietnam: Single-member limited liability company shall be assigned when there is no advantage in terms of land

Single-member limited liability company shall be assigned when there is no advantage in terms of land (Illustration)

According to Decree 128/2014/ND-CP, a single-member limited liability company, a subsidiary company shalll be assigned to a collective of employees (hereinafter referred to as enterprise assignment) when the following conditions are met:

- The total asset value recorded in the accounting books is less than VND 15 billion;

- There is no advantage in terms of land;

Additionally, selling one-member limited liability companies and affiliate companies (hereinafter referred to as the sale of enterprises) is not dependent on the scale of state capital in the following cases:

• Belongs to the category of enterprises to be sold as approved by the Prime Minister in the overall enterprise arrangement plan with 100% state capital;
• Belongs to the category of enterprises for equitization in the overall enterprise arrangement plan with 100% state capital but cannot proceed with equitization.

Assignment of one-member limited liability companies and affiliate companies (hereinafter referred to as the transfer of enterprises) must meet the following conditions:

• The enterprise operates within key industries, main business fields, or closely related to the key industries, main business fields of the economic group, corporation, or company group receiving the transfer;
• Not subject to dissolution or unable to pay debts;
• Belongs to the category of enterprises to be transferred under the overall enterprise arrangement plan with 100% state capital approved by the Prime Minister or as decided by the Prime Minister based on the agreement and proposal of the transferring and receiving parties.

See details at Decree 128/2014/ND-CP effective from March 1, 2015.

Ty Na

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