Forms of Company to be Set-up in Vietnam | ANT Lawyers

 According the Vietnam Law on Enterprises, there are four common types of companies:

- Private enterprise is an enterprise owned by an individual who is liable for all of its operations with his/her entire property;

- Partnership is an enterprise in which (i) there are at least two partners who are co-owners of the company, jointly conduct business under one common name; in addition to general partners, there may also be limited partners; (ii) general partners to a partnership must be individuals who are liable for all obligations of the partnership with his/her own entire property; (iii) Limited partners shall be liable for debts of the partnership only to the extent of their capital contribution to the partnership;

- Joint stock company is an enterprise where (i) Its charter capital is divided into equal portions known as shares; (ii) Shareholders may be organizations and/or individuals; the minimum number of shareholders shall be three and shall not be restricted to any particular maximum number; (iii) Its shareholders shall be liable for debts and other property liabilities of such enterprise within the limit of the value of their capital contribution to the enterprise; (iv) Shareholders shall be entitled to freely transfer their shares according to the provisions of law;

- Limited liability company (multi-member limited liability company and single-member limited liability company). A one-member limited liability company is an enterprise which is owned by one organization or individual (hereinafter referred to as the company owner); the company owner is liable for debts and other property liabilities of the company within the charter capital of the company. A limited liability company is an enterprise of which: (i) Members may be organizations and/or individuals; the total number of members shall not exceed fifty; (ii) Members are responsible for debts and other property liabilities of the enterprise within the amount of capital that they have committed to contribute to the enterprise; (iii) Capital shares of the members may only be transferred in accordance with the provisions of law.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Law firm in Hanoi, Law firm in Ho Chi Minh City and Law firm in Da Nang.

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Authorized Representative of the Company Under New Law on Enterprises | ANT Lawyers

 In order to raise the standard of business environment in Vietnam, Law on Enterprises 2015 reduced many administrative procedures of establishing and running a business, including the representative authorization of the member or shareholder of the company.

One of the distinguished amendments: authorized representative of the member or shareholder which is legal entity is not required to inform the licensing authority (i.e. Department of Planning and Investment).

Law on Enterprises 2015 provides that the appointment of an authorized representative must be made in written, notified to the Company and take valid from the receipt date of the Company while under Law on Enterprises 2005, the same must be registered at the licensing office.

In addition, any restrictions by the authorizing member on his/her authorized representative in the performance as member in the Members’ Council or shareholder in the Shareholders’ Meeting shall not enforce against the third party.

ANT Lawyers is a Vietnam law firm with international standards, recognized by IFLR1000 on Financial and Corporate practice. The firm provides a wide range of legal services, including M&A, corporate establishment, business advisory, tax advisory, dispute resolution for multinational and domestic clients.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Law firm in Hanoi, Law firm in Ho Chi Minh City and Law firm in Da Nang.

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Cosmetics Product Proclamation in Vietnam | ANT Lawyers

 Under Vietnam law, a cosmetic product made in Vietnam or imported into Vietnam must go through procedure of proclamation before being sold on the market.

Organizations or individuals distributing the cosmetic product on the market are only permitted when being granted the number of cosmetic product proclamation from the authority agencies. Such organizations or individuals are also responsible for safety, effectiveness, and quality of product.

Organizations, individuals who are responsible for putting products on market are organizations, individuals have name written in the cosmetic product announcement dossier and be responsible for cosmetics product in the market and must have the license of cosmetic business in Vietnam.

The cosmetic product manufacturers or importer may themselves conduct procedure in cosmetic product announcement or authorize for other organizations, individuals satisfying conditions as regulated to do this.

The cosmetic proclamation dossier includes the following documents:

Cosmetic product proclamation report (02 versions) with the proclamation data (soft version of proclamation report);

Copy of business registration certificate of organizations, individuals who are responsible for circulation products into the market (with the enterprise’s signature and seal). In case the cosmetic domestic produced, but organizations, individuals who be responsible for putting products on the market are not the manufacturer must have a copy of business registration certificate of the producer (have legal notarized);

Original or notarized copy of letter of attorney from the producers or the owners of products authorized for organizations, individuals are responsible of putting products on the market in Vietnam (applied to the import or domestic cosmetic of which organizations or individuals are responsible of putting products on the market, be not the manufacturer). For the import product, the letter of attorney must be a copy notarized sign and consul legalized as provisions of law, except for being exempted of the consul legalization in regard to international treaties in which Vietnam is a member. The letter of attorney must satisfy requirements regulated at the Article 6 of this Circular.

Certificate of free sale (CFS) is only applied for import cosmetic product proclamation which satisfies the following requirements: (i) CFS which is issued by the current territory must have been original or legally notarized and still in the day of validity. In case CFS is not provided of the expiry day, it must be a certificate which has just been issued within 24 months; (ii) CFS must be consul legalized according to provisions of the law, except consul legalization immunity case according to the international treaties in which Vietnam is a member.

Depending on type of cosmetic, Vietnam law requires different competent state management agencies responsible for receiving dossier of cosmetic announcement. For the export of cosmetic, the medicine Management Bureau – the Ministry of Health is responsible for receiving proclamation dossier. For the cosmetic produced by domestic organizations, individuals, organizations or individuals who are responsible for bringing cosmetic into market shall apply the cosmetic product proclamation dossier at the Department of Health in which production factory is located. The product which is produced, packed from the import semi finished products shall be considered domestic produced products.

The results of handling the cosmetic product proclamation dossier: the competent state agencies shall issue or refuse to grant the number of receiving the cosmetic product proclamation report.

The receipt number of cosmetic product proclamation report shall be valid for 05 years since issuing date. After 05-year-expiry, if organizations or individuals wish to continue selling product in the market, they must make a proclamation again before the expiry of the receipt number of cosmetic product proclamation report and pay a regulated cost fee.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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Employer’s Obligations on Recruitment, Labor Management and Labor Declaration under | ANT Lawyers

 Labour and employment compliance are continuous process which has no ending and there is no reason to stop.

In order for the companies in Vietnam to improve the effectiveness of its compliance in labour and employment in Vietnam, it is always important to pay attention to the details and fix the pending matters one by one. Labour and employment lawyers in Vietnam would help the clients with a thorough reviewing process if required.

The employer is required to comply with current labor regulations on recruitment procedure, labor management and declaration as following:

– Recruitment procedure:

The employer may recruit employee by either way of announcement at its head office or mass media. Employment application form must comply with the standard form which is attached in application dossier submitted by candidate. The application dossier must be returned to the candidate (if required) within 03 months from the date of announcement of recruitment results.

– Labor management:

The employer is required to create employment log book where is recorded information on the employees and their employment. The employment log book must be reserved at head office and make it available if required by Department of Labour, Invalid and Social Affairs (DOLISA).

– Labor declaration

Employers must semi-annually report any changes in their labor utilization as prescribed form to the DOLISA before May 25 or November 25 of each year.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Law firm in Hanoi, Law firm in Ho Chi Minh City and Law firm in Da Nang.

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Foreigner Can Buy House in Vietnam | ANT Lawyers

 As investment in properties oversea is a big decision, it is suggested the investor consult with real estate lawyer in Vietnam to help checking the eligibility of the developer, the construction permits and other legal documents granted for the project. It is important to review the transaction documents in regard to deposit agreement, sales agreements and other agreements the developer might propose to ensure the protection of rights, to minimize risks and ensure compliance.

On November 25th, 2014, the National Assembly of the Socialist Republic of Vietnam has approved the Housing Act 2014. One of the most prominent new changes is that a foreigner is entitled to purchase a house in Vietnam.

Foreign objects (organization and foreign individual) can own houses in Vietnam are:

Overseas organizations and individuals investing in housing construction under projects in Vietnam according to the provisions of the Housing Law and related legal documents;

Enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches are operating in Vietnam (hereinafter referred to as foreign organizations);

Foreign citizens are allowed to enter Vietnam.

Form of ownership housing foreigner in Vietnam:

Investment in housing construction under the project in Vietnam according to the provisions of the Housing Law and related legislation;

Purchasing, leasing, donation or inheritance of commercial housing includes apartments and individual houses in the investment projects of housing construction (Except for housing projects in the area of ensuring national defense and security as stipulated by the Government of Vietnam).

Condition, right and obligation of foreigner when buy house in Vietnam:

For individuals or organizations investing in housing construction under a project in Vietnam when seeking to own houses in Vietnam they must satisfy the following conditions:

Have an investment certificate

Have housing projects that are built in the project in accordance with the law on housing

For foreign organizations or enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam, when seeking to buy a house in Vietnam they must satisfy the following conditions:

Have investment certificates or documents relating to the permit to operate in Vietnam (hereinafter referred to as investment certificate) issued by the competent State agencies of Vietnam.

For foreign individuals buying a house in Vietnam:

Allowed to enter Vietnam and are not entitled to the privileges and immunities of diplomatic and consular as stipulated by law.

For foreign organizations or enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam and individual foreigners seeking to buy a house in Vietnam, they can own a house in Vietnam when:

Buy, lease, donate, inherit and own, to not exceed 30% of the apartments in an apartment building; if the houses are individual houses including villas, semi-detached houses and located in an area with a population equivalent to ward-level administrative, the allowed units that foreigners are permitted to buy, lease, donate, inherit and own must not exceed two hundred and fifty houses;

For foreign individuals, they shall be entitled to own a house as agreed in the contract of sale, lease, donate or inherit housing but not exceeding a term of 50 years from the date of issuance of the certificate of ownership and it can be extended according to the provisions of the Government if required; the housing ownership period must also be specified in the certificate;

In the case of foreign individuals married to a citizen of Vietnam or married to a Vietnam citizen settled in a foreign country, they can own the houses for a long and stable term. They also have owner’s rights like a Vietnam citizen;

For foreign organizations, they shall be entitled to own a house as agreed in the contract of sale, lease, donate or inherit the house but not exceed the term specified in the certificate of ownership, including the extended time. The housing ownership period is calculated from the date of receipt of the certificate of ownership and specified in the certificate.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have law firm in Hanoi, law firm in Ho Chi Minh City and law firm in Da Nang.

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Food and Food supplements registration in Vietnam | ANT Lawyers

 Proclamation of quality specifications of imported food and food supplements

To ensure imported food and food supplements are safe to eat, as well as to protect consumer through the control of imported food and food supplements quality, the Vietnam Food Registration Agency requests the imported food and food supplements to be complied with the proclamation standard procedures.

ANT Lawyers is capable to carry out proclamation of quality specifications procedures in Vietnam for clients being manufacturers, importers and distributors.

ANT Lawyers services include:

- Provide consulting advice relating to proclamation of quality specifications of products.

- Act as authorized representatives to draft documents, filing of statement with the competent State agencies.

- Provide consulting advice to overcome the problems arising in the course of registration;

- Act as authorized representatives to draft documents, filing of application at the competent State agencies.

- Authorized representatives to draft documents, filing for certificate extension at the competent State agencies.

A number of documents to be provided:

- Products specifications;

- Product label;

- Samples;

- Copy of the business registration certificate;

- Certificates of Good Manufacturing Practice (GMP), Hazard Analysis and System Critical Control Point (HACCP);

- Certificate of Free Sale or Health Certificate;

- Power of attorney;

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Food and Food supplements registration in Vietnam | ANT Lawyers

 Proclamation of quality specifications of imported food and food supplements

To ensure imported food and food supplements are safe to eat, as well as to protect consumer through the control of imported food and food supplements quality, the Vietnam Food Registration Agency requests the imported food and food supplements to be complied with the proclamation standard procedures.

ANT Lawyers is capable to carry out proclamation of quality specifications procedures in Vietnam for clients being manufacturers, importers and distributors.

ANT Lawyers services include:

- Provide consulting advice relating to proclamation of quality specifications of products.

- Act as authorized representatives to draft documents, filing of statement with the competent State agencies.

- Provide consulting advice to overcome the problems arising in the course of registration;

- Act as authorized representatives to draft documents, filing of application at the competent State agencies.

- Authorized representatives to draft documents, filing for certificate extension at the competent State agencies.

A number of documents to be provided:

- Products specifications;

- Product label;

- Samples;

- Copy of the business registration certificate;

- Certificates of Good Manufacturing Practice (GMP), Hazard Analysis and System Critical Control Point (HACCP);

- Certificate of Free Sale or Health Certificate;

- Power of attorney;

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Birth Registration with Foreign Element | ANT Lawyers

 From January 1st 2016, the Law on Civil Status of 2014 went into effect, replacing other documents on the registration and management of civil status. Accordingly, the law has clearly defined the authority for registration and management of civil status of the Commune People’s Committee and the District People’s Committee. Commune People’s Committee in charge of the registration and management of civic status that do not have foreign element. The remaining case that have foreign element will be under the jurisdiction of registration and management of the District People’s Committee.

For the case of children born in the territory of Vietnam, whose father is foreigner and mother is Vietnamese, but the parent does not have legal marriage (in other words: illegitimate children), the competent for birth registration belongs to the District People’s Committee where the father or mother reside.

In terms of the birth registration procedure, the Law on Civil Status provides only the procedure in case that the parents of the birth registration children have legal marriage.

The remaining case that parents of the birth registration children do not have legal then according to the provisions of the Law on Civil Status, if the father wants his name to be included in the birth certificate of the children, he have to register through adoption procedure. Accordingly, the father requesting for children adoption have to submit the declaration, documents to prove paternity, copy of passport or valid documents that can replace passport to prove his identity to the District People’s Committee where the father of the children reside.

Within 15 days of receiving valid dossier, the civil status authority will carry out the verification, listed the recognition of father and children at the headquarters of the District People’s Committee within 07 consecutive days. At the same time, the Commune People’s Committee where the child resides will list within 07 consecutive days at the headquarters of the Commune People’s Committee.

After the listing has been expired, the Justice Department proposed Chairman of the District People’s Committee to decide on the recognition of the father and son. Once registering for the recognition of the father and children, Chairman of the District People’s Committee provide excerpts for the parties.

The registration procedure for recognition of father and children must be done simultaneously or be conducted prior to birth registration of the children.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have law firm in Hanoi, law firm in Ho Chi Minh and law firm in Da Nang.

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