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What does setting up a joint stock company need? What are the conditions of establishment?

What does setting up a joint stock company need? What are the conditions of establishment? Here is important information to know when starting a business

Establishing a favorable and smooth joint stock company is a great desire of young businesses. If you do not have experience in setting up a company, the business can be difficult and time-consuming. So what does it take to set up a joint stock company? What are the considerations when establishing a joint stock company?

1. Find out information about the joint stock company

Definition of Joint Stock Company

Joint Stock Company is a familiar term in the business world, known as one of the most popular types of businesses today. This type comes from the need to link capital to the economic and social development of enterprises. Compared to other types, joint stock companies have the privilege of issuing, listing shares and raising capital on the stock market.

In fact, the joint stock company is always the preferred business direction for many people. Simply because of the desire of the majority of investors to share the burden of risk, finance and make more optimal profits.

set up a joint stock company in viet nam

A joint stock company usually has at least 3 founding shareholders. It can be an organization, an individual, or an unlimited number of shareholders. Therefore, shareholders are an important factor to create a joint stock company.

If there are no shareholders, the enterprise needs to supplement the signature of the legal representative or the common shareholders of the company when establishing the Joint Stock Company.

2. What does setting up a joint stock company need?

Shareholders contribute capital

The first factor is also the most important factor when establishing a joint stock company is the shareholder contributing capital. As shared, a joint stock company needs to have a minimum of 3 shareholders and an unlimited maximum.

Certified documents

According to the provisions of law, the establishment of joint stock companies does not need investors to provide household registration books. However, in order to ensure the process of establishing a company, the business needs to prepare a full certificate of certification papers. Depending on the object of capital contribution to the company, the certification papers are prepared as follows:

For the contributors:

  • 1 copy of the medical certificate attesting to the Business Registration Certificate or the establishment decision of the organization;

  • 1 copy of the ID card/Passport of the representative who contributed capital to the company and 1 corresponding authorization document.

  • For individuals contributing capital:

  • 1 copy of the medical certificate/ID card/Passport of the representative in accordance with the provisions of law.

  • 1 copy of the id card/Passport of the founding shareholders.

Necessary information about the company

set up a joint stock company in viet nam

When establishing a joint stock company, business owners need to learn some regulations about the company, such as:

  • Name: You can name the company based on the Vietnamese alphabet, English (J, W, Z, F), numbers and symbols. Note, absolutely do not name the same as the previously established company because it is easy to mislead.

  • Address: The company's address needs to be fully and detailed, including: number of houses/alleys/alleys/streets, streets/villages/hamlets/hamlets, communes/wards/towns/ towns, districts/towns/cities in provinces, provinces/centrally run cities.

  • Business lines: You need to make sure the business is legal, not prohibited, has capital conditions, practice certificates or business licenses.

  • Charter capital: The company needs to meet the capital requirements if operating in the field with legal capital requirements. For other occupations, charter capital will be registered based on the size of operations and the financial capacity of shareholders.

  • Legal representative: This may be the holder of important corporate titles, such as: director/general manager/chairman of the board. To facilitate the company's business, it is best to provide information about the representative as a director or general manager.

3. What does the company's setup documents need?

set up a joint stock company in viet nam

When establishing a Company Limited, you need to prepare the following types of records, including:

  • 1 application for registration of the company signed by the representative in accordance with the provisions of law.

  • 1 list of information of the founding shareholders of shares, including: personal background, percentage of capital, number of shares owned, ... This list should be fully signed by shareholders and representatives in accordance with the provisions of law.

  • 1 company charter with the signature of all shareholders.

  • 1 copy of the ID card/Passport of the representative in accordance with the provisions of law and the shareholders are individuals.

  • 1 certified copy of the medical certificate: the certificate of business registration or the decision to establish the company, id card / Passport of the representative under the corresponding authorization (if the shareholder is an organization).

After the preparation is completed, you will apply at the Business Registration Office - Department of Planning and Investment of the province / centrally run city. If the application is valid, the Department of Planning and Investment will issue the enterprise a certificate of company registration within 3 days (from the receipt of the application).

4. What do you need after the establishment of the Company Limited?

set up a joint stock company in viet nam

When the Co., Ltd. is officially established, you need to do some of the following work:

  • Prepare and submit your initial tax return.

  • Open and notify the company's bank account number to pay electronic taxes and pay card taxes. Currently, newly established companies will be exempt from the license tax in the first year.

  • Register and buy digital signatures to submit tax returns as well as deal with tax authorities.

  • Hang the sign under the Enterprise Law 2014. If the company sign is not hung, the enterprise can be fined from 10-15 million VND, will even be locked tax code (According to Article 34 of Decree 50/2016/ND-CP).

  • It is the procedure and issuance of invoices sent to the tax authority directly managing.

  • Enforce the conditions of licenses, capital and certificates.

  • Participate in employee insurance and some tax issues.

How much does it take to start a construction company?

Compared to other sectors, the construction industry is outside the industries that require legal capital. Therefore, to open a construction company, business owners do not need to prove capital as well as financial ability. At the same time, the company does not have any constraints on the amount of registered capital.

set up a joint stock company in viet nam

5. Leasing contract with no notarization becomes invalid?

According to the provisions of law, a tenancy agreement of more than 6 months that the parties do not sign will be invalidated. That is, if there is any dispute that occurs, the leasing and hired parties will return to each other what was received, specifically:

  • The tenant takes the house back.

  • The hired person gets the deposit back.

  • The relevant agreements will not be considered.

In fact, the lease agreement does not necessarily have to conduct notarization. Unless the parties agree and agree to notarize or certify with each other.

set up a joint stock company in viet nam

However, according to Clause 1, Article 188 of the Land Law 2013:

"1. Land users may exercise the right to convert, transfer, lease, sublease, inherit, donate or mortgage land use rights; contribute capital by land use right when the following conditions are available:

a) Having a certificate, except for the cases specified in Clause 3, Article 186 and the case of inheritance specified in Clause 1, Article 168 of this Law;

b) Land without dispute;

c) Land use rights are not distrained to ensure judgment enforcement;

d) Within the land use period."

Therefore, the owner of a house that has not been granted a Certificate of land use right, ownership of houses and related assets, such as: red book, pink book will not be allowed to: lease, sell or carry out notarization and certification in accordance with the provisions of law.

set up a joint stock company in viet nam

Through the above article, we hope you have answered the question "What does the process of establishing a joint stock company need?" Wishing you success conquering the business path, making a huge profit