Conditions for converting state-owned agriculture companies to LLCs with two or more members in Vietnam

Conditions for converting state-owned agriculture companies to LLCs with two or more members in Vietnam 

Specifically, wholly state-owned agriculture companies may be converted into limited liability companies with two or more members when the following conditions are met: 

- Having schemes for production and processing with applied high-tech, meeting the needs of the domestic and foreign markets according to the following criteria:

+ Applying high-tech included in the list of high-tech prioritized for development investment according to high-tech laws for agricultural product production; 

+ Applying environmentally friendly and energy-saving measures to the production and management of the quality of agricultural products, meeting Vietnamese technical standards and regulations. If there are no Vietnamese technical standards and regulations, apply the standards of specialized international organizations;

- Having remaining state capital after going through the financial handling and enterprise re-valuation. 

Additionally, selected investors shall meet the following conditions: 

- Having legal statuses as prescribed by laws; 

- Having equity worth at least twice the charter capital of the scheme for the establishment of the limited liability company with two or more members; 

- Having profitable business and production results in the last 3 years by the time of registering for participation in capital contribution or purchase of state capital; 

- Providing investor's written commitments when registering to be members of the limited liability company with two or more members;

- Ensuring that the above commitment is a mandatory content of the capital transfer contract. 

See more details in Decree No. 04/2024/ND-CP, effective as of March 1, 2024. 

Attention:

- Regarding agriculture and forestry companies that are still wholly-state owned enterprises after completing the arrangement and innovation but have inefficient operations that require re-arrangement or re-innovation, comply with Decree No. 118/2014/ND-CP and Decree No. 04/2024/ND-CP.

- Regarding agriculture and forestry companies that have not completed the arrangement and innovation before March 1, 2024 but have schemes for arrangement and innovation approved by the Prime Minister of Vietnam for meeting regulations of Decree No. 04/2024/ND-CP, they shall continue to carry out the approved schemes. 

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