Criteria, rights and obligations of social enterprises

Article 10. Criteria, rights and obligations of social enterprises

Set-up-company-in-vietnam-Vinasc21. Every social enterprise must satisfy the following criteria:

a) The enterprise is registered in accordance with this Law;

b) The enterprise’s objective is to resolve social, environmental problems, or to serve public interests;

c) At least 51% of annual profit is used for reinvestment in order to serve the social, environmental purposes as registered.

2. Apart from the rights and obligations of enterprises prescribed in this Law, social enterprises also have the following rights and obligations:

a) Maintain the objectives and conditions prescribed in Point b and Point c Clause 1 of this Article throughout the operation; any operating enterprise that wishes to convert into a social enterprise, and any social enterprise that wishes to stop operating as a social enterprise shall notify the competent authority to complete necessary procedures;

b) Owners and managers of social enterprises shall be enabled to obtain licenses and relevant certificates as prescribed by law.

c) Seek and receive sponsorships from other individuals, enterprises, non-governmental organizations, other Vietnamese and foreign organizations to cover administrative expense and operating costs of the enterprise;

d) Do not use the sponsorships for purposes other than covering administrative expense and operating costs or resolving social, environmental issues registered by the enterprise;

dd) Submit annual reports on the enterprise’s operation to the competent authority when receiving incentives or support.

Set-up-company-in-vietnam-Vinasc13. The State shall introduce policies to encourage, support, and boosts the development of social enterprises.

4. The Government shall elaborate this Article.

Article 11. Retention of enterprise’s documents

1. Depending on the form, the enterprise must retain the following documents:

a) The company’s charter; internal rules and regulations; member register or shareholder register;

b) Certificate of industrial property rights; Certificate of product quality registration; other licenses and certificates;

c) Documents proving the company’s ownership of its assets;

d) Minutes of meetings of the Board of members, the General Meeting of Shareholders, the Board of Directors; the enterprise’s decisions;

dd) The prospectus for securities issuance;

e) Reports made by the Control Board; conclusions of inspection authorities; conclusions of audit organizations;

g) Accounting books, accounting documents, and annual financial statements.

2. The documents mentioned in Clause 1 of this Article must be kept at the headquarter or another location prescribed in the company’s charter. The retention duration shall comply with relevant regulations of law.