Application of the Law on Enterprises and specialized laws

Article 3. Application of the Law on Enterprises and specialized laws

Set-up-company-in-vietnam-Vinasc2If specialized laws contain regulations on establishment, organization, restructuring, dissolution, and relevant activities of enterprises, such regulations shall apply.

Article 4. Interpretation of terms

In this Law, the terms below are construed as follows:

1. Foreigner means any person who does not have Vietnamese nationality.

2. Shareholder means any individual or organization that owns at least a share of a joint-stock company.

Founding shareholder means any shareholder that owns at least an ordinary share and whose signature is on the list of founding shareholders of the joint-stock company.

3. Dividend means a net profit paid to each share in cash or other assets from the residual profit of the joint-stock company after all financial obligations are fulfilled.

4. Limited liability companies include single-member limited liability companies and multi-member limited liability companies.

5. National business registration portal means a website used for online business registration and access of information about business registration.

6. National Enterprise Registration Database means a collection of data about business registration nationwide.

7. Enterprise means an organization that has its own name, assets, office, and is registered in accordance with law to do business.

8. State-owned company means any enterprise of which 100% charter capital is held by the State.

9. Vietnamese company means any enterprise that is established or registered under Vietnam’s law and has its headquarter located in Vietnam.

10. Permanent residence means the address of the organization’s headquarter or address of the individual’s permanent residence, workplace, or another location that is registered by such person with the enterprise as contact.

Set-up-company-in-vietnam-Vinasc111. Market price of a stake or share means the highest price on the market on the previous day, the price agreed between the seller and the buyer, or the price determined by a professional valuation organization.

12. Certificate of Business registration means a paper or electronic file issued by the business registration authority to the enterprise which contains information about business registration.

13. Capital contribution means the contribution of assets to form the company’s charter capital. Capital contribution is either contribution of capital to establish a new enterprise or contribution of additional capital to an existing enterprise.

14. National business registration information system comprises the National Enterprise Registration Database, national business registration portal, and the system infrastructure.

15. Valid application means an application that contains adequate documents as prescribed in this Law, and information on which are declared sufficiently as prescribed by law.

16. Business means the continuous execution of one, some, or all of stages of the investment process such as manufacturing, selling products or services on the market to earn profit.

17. Related person means any organization or individual that has a direct or indirect relationship with the enterprise, including the following cases:

a) The parent company, the manager of the parent company, and the person competent to designate such manager are related persons of subsidiaries in the same group;