On 17 June 2020, the National Assembly in Vietnam ratified the new Law on Enterprises (LOE 2020) and the new Law on Investment (LOI 2020), which took effect on 1 January 2021. What follows is a summary of the significant changes due to the implementation of the aforementioned laws.
The time limit for capital contributions remains 90 days from the ERC date but the new law excludes the time for transportation, import and implementation of administrative procedures to transfer the ownership of assets to the company if the capital contribution is in-kind.
The new regulation specifies responsibilities of legal representatives of the enterprise. Specifically, rights and obligations of each Legal Rep. must be specified in the Company's Charter, otherwise the Legal Rep. will have full authority before any third party, and all of the legal representatives will have joint responsibility for any damage caused to the company.
The Company Seal is no longer required to enterprises to notify their seal to the licensing authorities before using it. Additionally, the LOE 2020 also recognizes two types of seal being (i) the physical seal and (ii) the digital signature in accordance with the regulations on electronic transactions.