Enterprises in Vietnam will not have to fulfill as many obligations after the new law takes effect as of January 1, 2021

Enterprises in Vietnam will not have to fulfill as many obligations after the new law takes effect as of January 1, 2021 (Internet image)

Specifically, according to the provisions of Article 8 of the Law on Enterprise 2020, the obligations of enterprises in Vietnam include:

- Maintain the fulfillment of conditions for conducting restricted business lines and business lines restricted to foreign investors (hereinafter referred to as “restricted business lines”) prescribed by law throughout the course of business operation.

- Apply for enterprise registration; register changes to enterprise registration information; publish information about the establishment and operation of the enterprise; submit reports and fulfill other obligations prescribed by this Law.

- Take responsibility for the accuracy of information in the enterprise registration application and reports; promptly rectify incorrect information if found.

- Organize accounting works; pay taxes and fulfill other financial obligations prescribed by law.

- Protect lawful rights and interests of employees as prescribed by law; do not discriminate against or insult employees; do not mistreat or force employees to work; do not employ minors against the law; enable employees to improve their vocational skills through training; buy social insurance, unemployment insurance, health insurance and other insurance for employees as prescribed by law.

- Other obligations prescribed by law.

Thus, based on Article 8 of the Law on Enterprise 2014 and Article 8 of the Law on Enterprise 2020, from January 1, 2021, enterprises in Vietnam will no longer have the following obligations:

- Ensure and take responsibility for quality of goods/services according to standards prescribed by law or registered/announced standards.

- Comply with regulations of law on national defense and security, social order and safety, gender equality, protection of natural resources, the environment, historic sites and natural monuments.

- Exercise the obligations pertaining to business ethics to protect the lawful rights and interests of customers and consumers.

At the same time, according to the Law on Enterprise 2020, enterprises in Vietnam will no longer have the right to denounce violations of the law, but will only have the right to complain and participate in proceedings according to the provisions of law.

More details can be found in the Law on Enterprise 2020, effective from January 1, 2021.

Le Hai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE