Business consultancy
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Circular 40 – Foreign Employees in Vietnam
CIRCULAR 40 PROVIDES IMPLEMENTATION GUIDANCE REGARDING A NUMBER OF ARTICLES OF DECREE 11/2016/ND-CP ON FOREIGN EMPLOYEES IN VIETNAM In order to detail and solve commonly-occurring problems in terms of applying work permits for their foreign employees, the Ministry of Labor – Invalids and Social Affairs issued Circular No. 40/2016/TT-BLĐTB&XH dated 25 October 2016 (“Circular 40”). Accordingly, Circular 40 regulates a number of key issues as below: 1. Circular 40 specifically requires deadlines for employers (other than contractor) submitting to Department of Labor – Invalids and Social Affairs an explanatory report on demand for utilization of foreign employees at least 30 days before the planned day for commencement of work. In cases of changes in demand for utilization of foreign employees, ... -
FOREIGN INVESTOR ESTABLICS LOGISTICS COMPANY IN VIETNAM
In the modern economy, logistics plays a very important role, greatly affecting other manufacturing and service industries. Therefore, logistics not only attracts domestic capital but also receives much attention from foreign investors. The following article summarizes the conditions and procedures for foreign investors to establish logistics companies in Vietnam. According to WTO Protocol to accession, regarding logistics services, Vietnam has committed to opening the following sub-sectors: - Container handling services, except services provided at airports (part of CPC 4711); - Storage and warehouse services (CPC 742); - Freight transport agency services (CPC 478); - Customs Clearance Services; - Other services (part of CPC 749, including the following activities: bill auditing; freight brokerage services; freight inspection, weighing and sampling services; freight ... -
FOREIGN INVESTOR IN LIMITED LIABILITY COMPANY TRANSFER STAKES
1. Legal documents: - Law on Enterprise 2014; - Decree No.78/2015/NĐ-CP on enterprise registation. 2. In limited single-member liability company: In a single-member limited liability company, foreign investor is the owner of the company. Under Law on Enterprise 2014, the owner may decide to transfer a part or whole of the company’s charter capital to other individuals or organizations. In cases where the foreign investor is the company owner transfer the entire charter capital The transfer of capital must be made in writing (Capital transfer contract) or be accompanied with documents evidencing the transfer. The content of capital transfer contract must be clearly (including the information of the transferor and the transferee, amount of money, time, rights and other obligations ... -
STOCK ISSUANCE FOR INCREASE OF SHARE CAPITAL
In accordance with Article 25 of the Law on Securities, a public company is one of the following cases: - Has already conducted the public offering of its stocks; - Has its stocks listed at the Stock Exchange; - Has its stocks owned by at least one hundred investors, excluding professional securities investors, and has a contributed charter capital of VND 10 billion or more. If a public company plan to increase its capital, it may issue stock for increase of share capital with finances from the equity. Especially those companies which are in good business situation and are highly appreciated by investors, this may considered as an efficient way to attract more capital. Conditions apply to stock issuance for ... -
AUTHORIZAION CONTRACT
Authorization contract is a type of civil contract and are widely used in all spheres of life. When an individual wishes to give another individual his or her rights legally, that person will perform the act of authorization. To record this act, an authorization contract or a power of attorney should be made. The difference between these two types of documents is that the authorization contract requires the consent of both parties, while the power of attorney may only require one party to force the other to follow that order. According to the definition of the Civil Code 2015, an authorization contract means an agreement between parties whereby an attorney has the obligation to perform an act in the name ... -
CAPITAL CONTRIBUTION CONTRACT
Capital Contribution is a common activity in daily life among individuals, between individual and business or among businesses. The purposes of the capital contribution are also various: capital contribution to purchase and sale, to establish the company or investment capital contribution… Especially in business, capital contribution is an important activity affecting the formation and development of many enterprises. To make it easier for those who wish to draft a capital contribution contract, the following article would summarize some of the contents required in this contract as follows: Form of capital contribution contract: At present, there are no legal documents guiding in detail the form of capital contribution contract. However, in practice, the capital contribution should be documented to prevent the ...
