To prohibit act of carrying on busines operation while the enterprise is being suspended in Vietnam from 2021

To prohibit act of carrying on busines operation while the enterprise is being suspended in Vietnam from 2021 (Internet image) 

Specifically, Article 16 of the Law on Enterprises 2020 stipulates prohibited acts, including:

1. Issuing or refusing to issue the Certificate of Enterprise registration against regulations of this Law; requesting the founder to submit additional documents against regulations of this Law; delaying, obstructing, harassing enterprise founders and business operation of enterprises.

2. Obstructing the enterprise’s owner, members/partners/shareholders from performing their rights and obligations prescribed in this Law and the enterprise’s charter.

3. Doing business as an enterprise without applying for enterprise registration; carrying on busines operation after the Certificate of Enterprise Registration has been revoked or while the enterprise is being suspended.

4. Providing dishonest or incorrect information in the enterprise registration application or application for changes to enterprise registration information.

5. Declaring false charter capital; failure to contribute adequate charter capital as registered; deliberate contribution of assets with false value.

6. Engaging in banned business lines or business lines from which foreign investors are banned; engaging in restricted business lines without fulfillment of conditions or failure to maintain fulfillment of conditions during operation in restricted business lines.

7. Frauds, money laundering, terrorism financing.

According to the provisions of the Law on Enterprises 2014, it is strictly prohibited: "Doing business as an enterprise without registration; carrying on doing business after the Certificate of Business registration has been revoked."

In addition, this new Law also prohibits acts of terrorism financing, which was not previously mentioned in the Law on Enterprises 2014.

The Law on Enterprises 2020 has been approved by the National Assembly with 10 chapters and 219 articles, officially taking effect from January 1, 2021.

Le Hai

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