Vietnam: Notification no longer mandatory for change of business managers

Pursuant to Clause 24 Article 4 of the Law on Enterprises of Vietnam: “executive of an enterprise means the owner of a sole proprietorship, a general partner of a partnership, chairperson or member of the Member/Partner Assembly, President of a company, President or member of the Board of Directors, Director/General Director, or holder of another managerial position prescribed in the company’s charter”.

Previously, according to Article 54 of the Decree No. 78/2015/NĐ-CP (amended by the Decree No. 108/2018/NĐ-CP), within 05 working days from the day on which information about the full name, address, nationality, ID number of the enterprise’s manager, a member of the Control Board or Controller is changed, the enterprise shall send a notification to Business Registration Office of the province where its headquarters is situated according to Article 12 of the Law on Enterprises 2014 of Vietnam.

However, from January 04, 2021 on which the Decree No. 01/2021/NĐ-CP takes effect, there is no longer a regulation that requires enterprises to carry out the procedure for notifying changes in business registration information when there is a change in information about the business manager.

Note: This provision is understood to apply to other management positions specified in the company's charter. In case the company manager is also the legal representative, the general partner, the member of the limited company, the owner of the one-member limited liability company, the owner of the private enterprise, the founding shareholder of the unlisted joint-stock company If the shareholder is a foreign investor, the enterprise still has to carry out the registration procedures or notify the change of business registration information according to the corresponding provisions in Chapter VI of the Decree No. 01/2021/NĐ-CP of the Vietnam Government.

More details at the Decree No. 01/2021/NĐ-CP of the Vietnam Government effective from January 04, 2021.

To update the latest regulations related to business registration, please register here.

Hoa Hong

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