Procedure for transformation of State-owned enterprise into a single-member limited liability companies of which 100% charter capital is held by the State in Vietnam

Procedure for transformation of State-owned enterprise into a single-member limited liability companies of which 100% charter capital is held by the State in Vietnam

The procedure for transformation of State-owned enterprise into a single-member limited liability companies of which 100% charter capital is held by the State in Vietnam is as follows:

- The state-owned enterprise develops a transformation Scheme according to the contents stipulated in point a, clause 2, Article 7 of Decree 89/2024/ND-CP; the charter of the single-member limited liability companies of which 100% charter capital is held by the State, submits it to the representative agency of the owner for consideration and approval.

- Based on the proposal of the state-owned enterprise, the representative agency of the owner issues a Conversion Decision (as per the form stipulated in Appendix I issued together with Decree 89/2024/ND-CP).

- After the representative agency of the owner issues the Conversion Decision, the state-owned enterprise submits the registration dossier for such transformation as stipulated in Article 6 of Decree 89/2024/ND-CP to the provincial Business Registration Office where the company's head office is located.

- Within 03 working days from the date of receipt of the dossier, the provincial Business Registration Office is responsible for reviewing the validity of the enterprise registration dossier and issuing the Certificate of Enterprise Registration to the enterprise, updating information in the National Database on Enterprise Registration.

In case the dossier is not valid, the provincial Business Registration Office is responsible for notifying in writing the contents that need to be amended or supplemented to the state-owned enterprise. In case of refusal to issue the Certificate of Enterprise Registration, it must notify the state-owned enterprise in writing and clearly state the reason.

More details can be found in Decree 89/2024/ND-CP, which comes into force in Vietnam from September 1, 2024. Decree 25/2010/ND-CP shall cease to be effective in Vietnam from the date when Decree 89/2024/ND-CP becomes effective.

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