04 conditions to convert public non-business units into joint stock companies in Vietnam

Le Hai

15:00, 28/12/2020

Recently, the Government of Vietnam issued the Decree No. 150/2020/NĐ-CP on converting non-business units into joint stock companies.

According the Decree No. 150/2020/NĐ-CP of the Vietnam’s Government,

to Clause 1 Article 2 of the Decree No. 150/2020/NĐ-CP of the Vietnam’s Government, public non-business units specified in Clause 1 Article 2 of this Decree shall be transformed into joint stock companies when they simultaneously satisfy the following conditions:

- Self-guaranteeing recurrent expenditure and investment or self-guaranteeing recurrent expenditure in the year nearest to the time of conversion;

- State capital remains after financial processing and re-valuation of public non-business units;

- Belonging to the list of industries and fields in which the transformation of public non-business units into joint-stock companies shall be decided by the Prime Minister of Vietnam in each period. This list does not include industries and fields that are not regulated by specialized law to convert public non-business units into joint stock companies;

- Having a plan to rearrange and handle houses and land approved by a competent authority in accordance with the law on management and use of public property.

Decree No. 150/2020/NĐ-CP of the Vietnam’s Government takes effect from February 15, 2021 and replaces the Decision No. 22/2015/QĐ-TTg.

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