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Article table of contents
According to Clause 5 Article 17 of the Law on Enterprises 2014 of Vietnam, declaring false charter capital, failure to contribute sufficient charter capital as registered are strictly prohibited, specifically as follows:
5. Declaring false charter capital; failure to contribute sufficient charter capital as registered; deliberately determining inaccurate values of contributed assets.
According to Article 28 of Decree No. 50/2016/NĐ-CP of Vietnam’s Government, fines for failure to register changes to the business registration authority when charter capital is not adequately contributed as registered are as follows:
Article 28. Violations against regulations on enterprise establishment
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3. A fine of VND 10,000,000 - VND 20,000,000 shall be imposed for failure to register changes to the business registration authority when charter capital is not adequately contributed as registered.
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5. Remedial measures:
c) Register the change to the charter capital and holdings of members/partners/shareholders in case of the violation specified in Clause 3 of this Article;
Thus, a company's false declaration of charter capital is one of the strictly prohibited acts according to the provisions of the Law on Enterprises 2014. If the charter capital is registered as in the Business Registration Certificate, within 90 days from the date of issuance of the Business Registration Certificate, the company must contribute in full. In case of insufficient contribution, the charter capital must be registered to be equal to the actual contributed capital.
Moreover, the Law on Enterprises 2014 also prohibits the act of providing untruthful information in the application for enterprise registration or application for adjustments to business registration.
Fines for this act are specified in Article 24 of Decree No. 50/2016/NĐ-CP as follows:
Article 24. Violations against regulations on preparing the application for enterprise registration
1. A fine of VND 10,000,000 - VND 15,000,000 shall be imposed for provision of inaccurate or untruthful information in the application for enterprise registration.
2. Remedial measure: Correct the information.
Le Hai
