New features
The Corporate Law 2014 has excluded requirements on temporary business conditions at the time of registration for incorporation by changing from preliminary checks to post checks. At the time registering for incorporation, the registering enterprise does not need to satisfy the business conditions for those businesses requiring conditions. After the business registration certificate is issued, the enterprise is allowed to work on the registered businesses from the moment of meeting the business conditions by professional law.
The Corporate Law 2014 has separated registration procedures from those of investment registration. Accordingly, on implementing the procedures for obtaining Investment Registration Certificate, foreign investors are allow to incorporate in the same position as domestic enterprises. The regulation distinguishes legal entities and particular investments while reducing burden for investors on their adjustment of entity-related information.
The Corporate Law 2014 has helped to reduce registration time for enterprises down to 3 working days. To realize the regulations, Ministry of Planning and Investment coordinates with Ministry of Finance to construct a joint circular guiding the information exchanges of business registration and operations including financial statements of the enterprises. Accordingly, tax registration system will automatically create tax identification numbers without the needs of a tax officer working on inspection and consideration.
Corporate Law 2014 facilitates development of enterprises. In this photo: Production operations are ongoing at Dai Tay Duong Corporation in Vietnam Singapore Industrial Park 1 in Thuan An Town
The enterprises to decide formalities, quantities and contents of their seals
The Corporate Law 2014 has let the enterprises decide the formalities, quantities and contents of their seals. Under Corporate Law 2005 and Decree No. 58/2001/ND-CP, the State’s managing authority will decide the formalities, quantities and contents of the corporate seals. Thus, the operating enterprises should apply for their seals and can only obtain such seals by approval of the authority.
The Corporate Law changes the decision right of the seals to the enterprises. Accordingly, the Article 44 of the law rules that the enterprises have their rights to decide the formalities, quantities, and contents of their seals.
The enterprises are obliged to notify of and introduce their seals on national portal of corporate registration before using the seals. The regulation rules that the seals of enterprises are designed by enterprises as a recognition mark. The Corporate Law 2014 frees up the management and preservation of the enterprise seals by approving charter of association to rule on such management and preservation.
Binh Duong Province is a locality of plenty industrial parks attractive to domestic and foreign enterprises. The Corporate Law 2014, when put into use, is expected to facilitate favored conditions for enterprises and attract investments to the strongly developing province.
To put the law into practice
To ensure the implementation of Corporate Law 2014 during the time when no guiding decrees or circulars of enterprise registration are in place Ministry of Planning and Investment issued the Document No. 4211-BKHDT-DKKD dated June 26, 2015 to guide the application of business registration regulations.
Currently, business registration form is publicly available at document reception unit on Floor 1 of Binh Duong Provincial Administrative Center to enterprises. In the meantime, organizations and individuals can access http://sokhdt.binhduong.gov.vn or http://dangkykinhdoanh.gov.vn to download the forms.
Reported by Phuong An, H.H – Translated by Vi Bao