Individuals and organizations have the right to establish and manage enterprises in Vietnam according to the regulations of the law, except for the following subjects who are not allowed to establish and manage enterprises in Vietnam:
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Who does not have the right to establish and manage enterprises in Vietnam?
- State authorities, People’s armed forces using state-owned assets to establish enterprises to serve their own interests;
- Officials and public employees defined by the Law on Officials and the Law on Public Employees;
- Commissioned officers, non-commissioned officers, career military personnel, military workers and public employees in agencies and units of Vietnam People’s Army; commissioned officers, non-commissioned officers and police workers in police authorities and units, except for those designated and authorized representatives to manage state-owned stakes in enterprises or to manage state-owned enterprises;
- Executive officers and managers of state-owned enterprises prescribed in Point a Clause 1 Article 88 of Law on Enterprises, except those who are designated as authorized representatives to manage state-owned stakes in other enterprises in Vietnam;
- Minors; people with limited legal capacity; incapacitated people; people having difficulties controlling their behaviors; organizations that are not juridical persons;
- People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, has limited legal capacity or is incapacitated, is not able to control his/her own behaviors, is banned by the court from holding certain positions or doing certain works; other cases prescribed by the Law on Bankruptcy and the Anti-corruption Law.
If requested by the business registration authority, the applicant shall submit the judicial records;
- Juridical persons that are banned from business operation or banned from certain fields as prescribed by the Criminal Code in Vietnam.
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Private profit for an agency or unit is the use of income in any form obtained from business activities, from capital contribution, share purchase, or purchase of contributed capital for one of the following purposes: - Any kind of distribution to some or all of the persons as follow: + Officials and public employees defined by the Law on Officials and the Law on Public Employees; + Commissioned officers, non-commissioned officers, career military personnel, military workers and public employees in agencies and units of Vietnam People’s Army; commissioned officers, non-commissioned officers and police workers in police authorities and units, except for those designated and authorized representatives to manage state-owned stakes in enterprises or to manage state-owned enterprises; - Inclusion in the operating budget of the organization/unit against state budget laws; - Establishment or contribution to an internal fund of the organization/unit. |
(Article 17 of Law on Enterprises 2020)
Diem My
