Law on Private Enterprises

Legal+document%3a+LAWPRIVA+*+*%2fDate%3a%2f*+06%2f22%2f94+*+*%2fNumber%3a%2f*LAWPRIVA+*+*%2fName+of+Document%3a%2f*+Law+On+Private+Enterprises+The+Nationa+The+Socialist+Republic+of+Vietnam+Assembly+Independence-Freedom-Happiness.+December+12th%2c+1990.+Amended+on+June+22nd%2c+1994.+LAW+ON+PRIVATE+ENTERPRISES+In+order+to+implement+a+basis+for+the+development+of+a+multi-sector+commodity+economy%2c+encourage+investment+and+business%2c+protect+the+lawful+interests+of+private+entrepreneurs%2c+and+enhance+the+efficiency+of+State+management+in+respect+of+all+business+activities%3b+Pursuant+to+article+83+of+Republic+of+Vietnam%3b+the+constitution+of+the+Socialist%0d%0a%0d%0aThis+law+makes+provisions+on+private+enterprise.+CHAPTER+I+GENERAL+PROVISIONS+Article+1%3a+All+Vietnamese+citizens+who+are+eighteen+(18)+years+of+age+or+older+are+entitled+to+establish+private+enterprises+in+accordance+with+the+provisions+of+this+Law.+Article+2%3a+In+this+Law+private+enterprise+means+a+business+unit+which+has+a+level+of+capital+no+less+than+that+of+its+legal+capital%2c+which+is+owned+by+an+individual+who+shall%2c+to+the+extent+of+his+total+assets%2c+be+responsible+for+its+business+activities.+business+means+the+carrying+on.+for+the+purpose+of+generating+profits%2c+of+one+or+more+stages+of+the+investment+process%2c+from+production+to+sale+of+products+or+provision+of+services.+Article+3%3a+The+State+recognizes+the+long+term+existence+and+development+of+a+private+enterprise%2c+the+equality+before+the+law+of+a+private+enterprise+and+other+enterprises%2c+and+the+lawful+generation+of+profit+by+its+business.+Within+the+framework+of+the+law%2c+the+owner+of+a+private+enterprise+is+free+to+carry+out+his+business+and+make+independent+decisions+in+relation+to+its+business+activities.%0d%0a%0d%0a%0cArticle+4%3a+The+right+to+own+means+of+production%2c+to+inherit+capital+and+all+assets%2c+and+other+legal+rights+and+interests+of+the+owner+of+the+enterprise+shall+be+protected+by+the+State.+Article+5%3a+Individuals+may+not+carry+on+businesses+which+are+prohibited+by+law.+The+approval+of+the+prime+Minister+of+Government+is+required+for+the+establishment+of+private+enterprises+which+propose+to+conduct+business+in+the+following+areas+and+occupations%3a+1.+Manufacturing+and+distribution+of+explosives%2c+chemicals.+2.+Mining+of+certain+precious+minerals.+3.+Production+and+supply+of+electricity+and+water+on+a+large+scale.+poison%2c+and+toxic%0d%0a%0d%0a4.+Manufacture+of+information+transmitting+facilities%2c+postal+and+telecommunication+services%2c+broadcasting%2c+television%2c+and+publication.+5.+Ocean+shipping+and+air+transportation.+6.+Specialist+export+and+import+business.+7.+International+tourism.+Article+6%3a+Persons+who+are+certified+insane%2c+under+criminal+prosecution+or+who+have+been+convicted+and+whose+sentence+has+not+been+erased+from+the+record+are+prohibited+from+establishing+or+managing+their+own+private+enterprises.+Article+7%3a+Public+servants+currently+employed+in+State+Operations+and+officers+on+active+service+in+the+people's+armed+forces+are+prohibited+form+establishing+or+managing+private+enterprises.+CHAPTER+II+THE+ESTABLISHMENT%2c+BUSINESS+REGISTRATION%2c+DISSOLUTION+AND+BANKRUPTCY+OF+A+PRIVATE+ENTERPRISE+Article+8%3a+Any+individual+who+wishes+to+establish+a+private+enterprise+shall+submit+an+application+to+the+people's+committee+which+is+authorized+by+the+Government+to+grant+a+licence.+The+following+information+must+be+clearly+stated+in+the+application%3a+1.+Name%2c+age%2c+and+enterprises.+permanent+addresses+of+the+owners+of+the%0d%0a%0d%0a2.+The+proposed+head+office+of+the+enterprise.+3.+Objectives%2c+specific+branches%2c+enterprise.+and+areas+of+business+of+the%0d%0a%0d%0a%0c4.+Initial+invested+capital.+State+constituted+by+Vietnamese+currency%2c+assets+in+kind.%0d%0a%0d%0aclearly+the+proportions+foreign+currency%2c+gold%2c+and%0d%0a%0d%0a5.+Environmental+protection+measures+to+be+taken.+The+application+must+be+attached+to+the+initial+business+plan.+Article+9%3a+Any+individual+who+is+entitled+to+establish+a+private+enterprise+shall+satisfy+the+following+requirements+before+a+licence+is+granted%3a+1.+Objectives%2c+branches%2c+and+areas+of+business+defined%2c+details+of+the+business+office+and+business+plan+must+be+provided.+must+be+well+its+specific%0d%0a%0d%0a2.+Initial+capital+must+be+sufficient+for+the+scale%2c+branches+and+areas+of+the+business.+The+initial+capital+shall+be+no+less+than+the+legal+capital+stipulated+by+the+Government.+3.+The+owner+of+the+enterprise+on+the+manager+whom+he+has+employed+for+the+purposes+of+management+of+the+business+operation+shall+have+the+qualifications+required+by+law+for+their+relevant+branch+and+areas+of+business.+Article+10%3a+Within+thirty+(30)+days+from+the+date+on+which+it+receives+the+application%2c+the+people's+committee+shall+grant+or+refuse+to+grant+a+licence+to+establish+a+private+enterprise.+In+the+event+that+the+application+is+refused+the+reason+for+this+decision+must+be+explicitly+stated.+Where+the+applicant+for+the+establishment+of+a+private+enterprise+is+dissatisfied+with+the+refusal+to+grant+a+licence+he+may+appeal+directly+to+the+state+body+at+a+higher+level+of+people's+committee+which+has+power+to+grant+the+licence.+Article+11%3a+Within+sixty+(60)+days+from+the+date+on+which+the+establishment+of+the+enterprise+is+granted%2c+its+owner+shall+register+his+or+her+business+with+the+planning+committee+at+their+equivalent+level+with+and+the+people's+committee+which+has+granted+the+licence.+The+application+file+for+registration+shall+include%3a+the+licence+to+establish+the+enterprise%2c+a+bank+certificate+of+the+amount+deposited+in+Vietnamese+or+foreign+currency%2c+and+in+gold+in+the+bank+account+of+the+owner+of+the+enterprise%3b+a+certificate+of+the+notary+public+office+confirming+the+value+of+assets+held+which+belong+to+the+owner+of+the+enterprise+and+which+correspond+to+the+initial+invested+capital+recorded+in+the+licence%2c+and+the+certificate+acknowledging+the+business+office+of+the+enterprise.+In+the+event+that+registration+does+not+occur+within+the+sixty+(60)+days+stipulated+in+paragraph+1+of+this+Article+and+the+owner+of+the+private+enterprise+wishes+to+continue+with+the+establishment+of+the+private+enterprise%2c+he+must+reapply+for+the+establishment+of+an+enterprise+again.+In+the+event+that+the+reason+for+delay+is+legitimate%2c+the+people's+committee+which+originally+granted+the+licence+may+extend+the+time+limit+for+registration+for+a+period+no+greater+than+thirty+(30)+days.%0d%0a%0d%0a%0cArticle+12%3a+During+the+process+of+registration+the+name+of+the+private+enterprise+shall+be+recorded+in+the+business+registration+book+and+a+certificate+of+business+registration+shall+be+issued.+From+that+point+of+time%2c+the+private+enterprise+is+authorized+to+proceed+with+its+business+operations.+The+planning+committee+shall%2c+within+seven+days+from+the+date+on+which+the+certificate+of+business+registration+is+issued%2c+send+a+copy+of+it+attached+to+the+file+of+the+enterprise+to+the+taxation+office+and%2c+financial%2c+statistical+and+management+bodies+of+economic+and+technical+branches+at+their+equivalent+level%2f+Article+13%3a+Within+thirty+(30)+days+from+the+date+on+which+the+business+licence+is+granted%2c+the+owner+of+the+private+enterprise+who+has+received+the+licence+from+the+people's+committee+of+the+province+or+city+under+central+authority+or+equivalent+administrative+unit+shall+cause+to+be+published+in+the+local+or+central+newspapers+the+following+principal+items%3a+1.+Full+name+of+the+owner+enterprise.+of+the+enterprise+and+the+name+of+the%0d%0a%0d%0a2.+The+address+of+the+head+office+of+the+enterprise.+3.+The+objectives%2c+enterprise.+branches%2c+and+areas+of+business+of+the%0d%0a%0d%0a4.+Initial+invested+capital.+5.+The+date+of+granting+of+the+licence%2c+the+date+of+issue+of+the+certificate+of+business+registration+and+its+number.+6.+The+date+of+enterprise.+Article+14%3a+In+the+event+that+the+owner+of+the+private+enterprise+finds+it+is+necessary+to+establish+a+branch+or+representative+office+outside+the+province+or+the+city+under+central+authority+or+an+equivalent+administrative+unit+where+its+head+office+is+located%2c+he+shall%3a+1.+Request+a+permit+from+the+people's+committee+of+the+province+or+city+under+central+authority+where+its+branch+or+representative+office+is+based+%2c+and+register+its+business+operations+at+the+planning+committee+of+the+same+level%2c+as+provided+in+article+9+and+article+11+of+this+Law.+2.+Notify+in+writing%2c+within+fifteen+(15)+days+from+the+date+on+which+the+branch+or+representative+office+registered+for+business+operation%2c+the+people's+committee+which+granted+the+licence%2c+of+the+opening+of+its+Branch+or+representative+office.+Article+15%3a+In+the+event+that+the+owner+of+the+enterprise+wishes+to+change+commencement+of+the+operations+of+the%0d%0a%0d%0a%0cits+objectives%2c+branches%2c+areas+of+business%2c+initial+invested+capital+or+other+items+contained+in+its+business+registration+file%2c+he+shall+notify+the+planning+committee+located+where+the+business+has+been+registered.+Where+the+private+enterprise+concerned+has+been+granted+its+licence+by+the+people's+committee+of+the+province+or+city+under+central+authority+its+owner+shall+also+cause+all+changes+to+be+published+in+the+newspapers.+Article+16%3a+A+private+enterprise+may+be+dissolved+only+if+its+owner+guarantees+full+payment+of+all+debts+and+complete+settlement+of+all+contracts+which+it+has+signed.+In+order+to+dissolve+the+enterprise%2c+its+owner+shall+submit+his+or+her+application+to+the+people's+committee+which+has+granted+the+licence%2c+and+cause+to+be+published+information+regarding+the+dissolution+in+a+local+or+central+newspaper.+The+application+and+information+must+explain+clearly+the+sequence+and+procedures+for+liquidation+of+the+assets%2c+the+time+limit+for+payment+of+debts+and+the+settlement+of+all+contracts.+The+people's+committee+may+approve+the+application+for+dissolution+only+where+no+claim+has+been+made+after+fifteen+(15)+days+from+the+expiry+of+the+time+limit+for+the+payment+of+debts+and+the+settlement+of+all+contracts+as+stated+in+the+application+and+information+regarding+the+dissolution.+The+dissolution+of+the+enterprise+may+only+commence+upon+the+grant+of+approval+of+the+application+for+dissolution.+Article+17%3a+An+private+enterprise+being+in+bankruptcy+shall+be+an+enterprise+which+suffers+from+difficulties+or+loses+in+doing+its+business%2c+after+exhausting+all+necessary+financial+measures+but+still+not+be+able+to+pay+debts+when+they+due.+The+procedures+for%2c+and+sequence+of%2c+bankruptcy+shall+accord+with+the+provisions+of+the+law+on+bankruptcy.+CHAPTER+III+ORGANIZATION+OF+THE+OPERATIONS+OF+A+PRIVATE+ENTERPRISE+Article+18%3a+A+private+enterprise+may+be+named+after+a+given+branch%2c+area+of+occupation+or+personal+name.+On+its+signboard%2c+vouchers%2c+advertisements%2c+reports%2c+documents+and+other+transaction+papers+the+name+of+the+enterprise+must+be+stated+together+with+the+words+private+enterprise+and+the+amount+of+initial+invested+capital.+Article+19%3a+The+owner+of+the+private+enterprise+may%2c+himself%2c+manage+or+employ+another+person+to+manage+the+business+operations+of+the+enterprise+but+shall+%2c+in+any+event%2c+remain+personally+responsible+for+all+of+its+activities.+The+owner+of+the+private+enterprise+may+appear+before+the+economic+arbitration+body+or+a+law+court+as+either+the+plaintiff+or+the+defendant+in+disputes+and+law+suits+relating+to+his+business.+Article+20%3a%0d%0a%0d%0a%0cThe+initial+invested+capital+of+the+enterprise+shall+be+declared+by+its+owner.+The+capital+in+Vietnamese+or+foreign+currency+or+in+gold+deposited+at+the+bank+where+the+owner+of+the+enterprise+has+opened+an+account+shall+be+certified+by+the+bank.+Where+the+capital+is+comprised+of+assets+in+kind%2c+it+must+be+certified+by+a+notary+public+office.+The+initial+invested+capital+of+the+enterprise+and+the+other+assets+used+by+its+owner+in+its+business+operations+must+be+recorder+in+its+books+of+accounts.+Article+21%3a+During+the+process+of+this+operations%2c+the+owner+of+a+private+enterprise+may+increase+or+reduce+his+original+invested+capital%2c+provided+that+the+capital+remaining+is+not+less+than+its+legal+capital.+Any+increase+or+reduction+in+capital+must+be+recorded+in+full+in+the+books+of+account.+Article+22%3a+The+owner+of+a+private+enterprise+shall%2c+provisions+of+the+law%2c+have+the+right+to%3a+1.+Select+the+branch%2c+business.+areas+of+activities%2c+subject+to+the%0d%0a%0d%0aand+scale+of+his%0d%0a%0d%0a2.+Select+the+form+and+method+of+raising+funds.+3.+Select+customers+and+contracts+with+them.+enter+into+direct+transactions+and+sign%0d%0a%0d%0a4.+Recruit+and+hire+labour+as+required+by+his+business.+5.+Use+his+earned+foreign+currencies.+6.+Make+decisions+regarding+the+use+of+remaining+revenue.+7.+Take+initiatives+activities.+Article+23%3a+The+owner+of+the+private+enterprise+shall+have+the+right+to+lease+his+enterprise.+Before+leasing+out%2c+he+shall+report+in+writing+to+the+planning+committee+which+issued+the+business+licence.+During+the+term+of+the+lease%2c+the+owner+of+the+private+enterprise+shall+remain+legally+responsible+for+it+in+a+capacity+as+its+owner.+Article+24%3a+The+owner+of+the+enterprise+may+sell+or+merge+it+with+another+enterprise.+Before+the+sale+or+merger+occurs+however%2c+the+owner+of+the+enterprise+shall+submit+an+application+to+the+people's+committee+which+granted+the+licence%2c+stating+the+reason+for+the+sale+or+merger+and+attaching+the+following%3a+1.+A+confirmation+from+the+creditors+of+the+enterprise+stating+the+owner's+satisfaction+of+all+debts%2c+a+guarantee+of+the+other+enterprise+or+of+a+bank+responsible+for+the+debts+of+the+enterprise.+2.+A+confirmation+of+the+customers+of+the+enterprise+that+the+in+all+of+his+registered+business%0d%0a%0d%0a%0centerprise+has+settled+in+full+all+of+its+contracts+or+the+guarantee+of+other+enterprises+in+the+country+that+those+contracts+will+be+implemented.+The+people's+committee+shall+approve+the+sale+or+merger+of+the+enterprise+only+after+the+owner+of+the+enterprise+has+caused+its+application+to+be+published+in+three+consecutive+editions+of+a+newspaper+every+five+days+without+receiving+any+claims+within+the+fifteen+(15)+days+which+follow+thereafter.+The+sale+or+merger+of+the+business+shall+take+effect+only+after+the+approval+of+application+has+been+granted.+After+completing+all+procedures+concerning+the+sale+or+merger+with+another+enterprise%2c+the+owner+of+the+enterprise+shall+submit+a+declaration+to+the+planning+committee+which+issued+the+licence+for+business+registration+in+order+that+its+name+may+be+deleted+from+the+registration+book+and+this+shall+have+to+be+done+publicly.+Article+25%3a+The+owner+of+the+obligations%3a+private+enterprise+shall+the+following+capital+for%0d%0a%0d%0a1.+To+make+a+correct+business+.%0d%0a%0d%0adeclaration+of%0d%0a%0d%0ahis+invested%0d%0a%0d%0a2.+To+carry+on+its+activities+areas+stated+in+the+licence.%0d%0a%0d%0ain+accordance%0d%0a%0d%0awith+the+branch+and%0d%0a%0d%0a3.+To+give+priority+to+the+use+of+local+labour%2c+ensure+the+rights+and+interests+of+its+employees+in+accordance+with+the+provisions+of+the+laws+on+labour+and+respect+the+rights+of+the+trade+union+organizations+under+the+law+on+Trade+Unions.+4.+Guarantee+the+quality+of+goods+in+standards+stated+in+the+registration.+accordance+with+the%0d%0a%0d%0a5.+To+observe+all+regulations+of+the+State+in+relation+to+environmental+protection%2c+the+protection+of+historical+and+cultural+relics%2c+natural+landscapes%2c+law+and+order+and+social+security.+6.+To+keep+books+of+account+and+cost+accounting+in+accordance+with+the+law+on+accountancy+and+statistics+and+be+subject+to+the+examination+of+the+financial+authorities.+7.+To+pay+taxes+Law.+and+fulfill+other+obligations+stipulated+by+the%0d%0a%0d%0aCHAPTER+IV+DEALING+WITH+BREACHES+Article+26%3a+Any+person+who+establishes+a+private+enterprise+without+a+licence+or+who+carries+on+business+without+registration%2c+or+where+he+does+have+registration%2c+carries+on+a+business+which+does+not+conform+with+the+branch+or+area+registered+in+the+licence%2c+or+who+breaches+other+provisions+of+this+Law%2c+shall+depending+on+the+seriousness+of+the+breach%2c+be+liable+to+administrative+penalty+or+subject+to+criminal+prosecution+in+accordance+with+the+provisions+of+the+law.%0d%0a%0d%0a%0cArticle+27%3a+Any+person+who+takes+advantage+of+his+position+and+authority+to+grant+licenses+for+the+establishment+of+private+enterprises+to+persons+who+are+prohibited+from+owning+them%2c+or+to+persons+who+are+not+permitted+to+establish+them%2c+or%2c+alternatively%2c+who+fails+to+grant+licenses+for+the+establishment+of+private+enterprises+or+certificates+for+business+registration+to+those+who+are+fully+qualified+for+them%2c+or+who%2c+for+the+benefit+of+the+owner+of+the+enterprise%2c+wrongly+certifies+the+bank+deposited+capital+or+value+of+the+assets+in+kind%2c+or+who+breaches+other+stipulations+of+this+Law%2c+shall%2c+depending+on+the+seriousness+of+the+breach%2c+be+subject+to+administrative+penalties+or+to+criminal+prosecution+as+provided+by+law.+CHAPTER+V+FINAL+PROVISION+Article+28%3a+This+Law+shall+be+of+full+force+and+effect+as+of+15+April%2c+1991.+All+previous+provisions+which+are+inconsistent+with+this+Law+are+hereby+repealed.+Within+one+hundred+and+eighty+(180)+days+from+15+April+1991%2c+the+owners+of+private+enterprises+who%2c+prior+to+that+date%2c+were+granted+licenses+by+authorized+bodies+for+the+establishment+of+enterprises+shall+complete+the+procedures+for+establishment+again+and+reapply+for+business+licenses+in+accordance+with+the+provisions+of+this+Law.+For+The+National+Assembly+of+the+Socialist+Republic+of+Vietnam+The+Chairman+NONG+DUC+MANH+(Signed)%0d%0a%0d%0aBackBack+%3cindex.html%3e%0d%0a%0d%0a%0c