What is the charter capital of a joint-stock company? What is the minimum charter capital in Vietnam?

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What is the charter capital of a joint-stock company? What is the minimum charter capital in Vietnam?

A joint-stock company is one of the most popular types of business today. So according to the law, what is the charter capital of a joint-stock company? What is the minimum charter capital of a joint-stock company?

What is the charter capital of a joint-stock company?

In Clause 34, Article 4 of the Enterprise Law 2020, the charter capital is explained as follows:

Charter capital is the total value of assets contributed or committed by the company’s members and owners when establishing a limited liability company or partnership; is the total par value of shares sold or registered for purchase upon the establishment of a joint-stock company.

Accordingly, the charter capital of a joint-stock company is the total value of shares sold of all kinds.

Charter capital of a joint-stock company at the time of enterprise establishment is the total value of shares of all types which have been registered for purchase and recorded in the company’s charter.

The charter capital of a joint-stock company may be changed during the course of business operations. If a joint-stock company wants to change its charter capital, it must carry out the procedures for registration of changes in business registration contents with the competent authority.

What is the minimum charter capital of a joint-stock company?

How much charter capital is registered does not affect the business operations of the enterprise too much.

The Enterprise Law 2020 only requires assets to be contributed as capital of Vietnam Dong, freely convertible foreign currencies, gold, land use rights, intellectual property rights, technology, technical know-how, and other identifiable assets. The price is in Vietnam Dong in Article 34.

In addition, there are no other regulations that require minimum charter capital or limit maximum charter capital.

Although there is no limit to the registration of charter capital, however, some specific industries and professions still have to register a certain level of charter capital to be eligible to do business.

The level of charter capital of an enterprise is an important part of showing the prestige and responsibility of capital contributors to customers and partners.

If the charter capital is low or too low, it will be difficult for businesses to create a trust for customers and partners. If the charter capital is too high or too high, it is easier for the enterprise to build trust, but the responsibility and risk of capital contributors are also higher.

How to increase or decrease the charter capital of a joint-stock company?

Charter capital is adjusted up or down at any time according to the needs of each enterprise.

According to Article 51 of Decree 01/2021/ND-CP, in order to register a change of charter capital, a joint-stock company must send an application for a change of business registration contents to the Business Registration Office where the company is located. headquarters.

In which, the company can register to change the contributed capital, the percentage of contributed capital of the company’s members.

Currently, businesses can easily carry out this procedure through the National Portal for Business Registration.

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