Notes on setting up a joint stock company

For investors who set up businesses to do business and production, it helps bring in great income. Starting a business has to go through many processes. Currently, in Vietnam, the procedure for setting up a joint stock company is simpler than before. However, in the pre-establishment preparation stage and post-establishment procedures, there are always problems that many people do not understand and cannot solve, especially when establishing a joint stock company. The notes when establishing a joint stock company will be highlighted in the following article YNN to help you fully understand and appreciate.

1. What is joint stock company?

According to the provisions of Article 111 of the Enterprise Law 2020, a joint stock company (JSC) is an enterprise in which the charter capital is divided into equal parts called shares.

Shareholders can be of any nationality, not necessarily Vietnamese. Therefore, a joint-stock company can be owned by foreigners or a joint venture between foreigners and locals.

2. The benefits of setting up a joint stock company 

- A joint stock company with an unlimited number of shareholders: a prominent feature of this type is that the number of founding shareholders is not limited to at least 3 shareholders. Therefore, a large amount of capital contribution is suitable for a large business model.

- The mode of responsibility of shareholders: there is a clear separation of assets between shareholders. Therefore, shareholders have a limited liability regime and are responsible for the amount of capital contributed to the company. This limits many risks for shareholders and the company.

- Strict organizational structure: the structure of a joint stock company includes the general meeting of shareholders, the board of directors, the supervisory board, the director and other management positions. In order to protect shareholders' interests and create favorable operating conditions,

- The fastest ability to raise capital is because a joint stock company has the right to issue securities.

- Shareholders have the right to own if they want to transfer their contributed capital.

3. Notes when setting up a joint stock company

3.1. Cost of setting up a joint stock company

When establishing a joint-stock company, the enterprise needs to pay taxes including: license fee (annual payment), VAT, corporate income tax, environmental tax, import-export tax, land use tax,...

In addition, some accompanying costs, such as registration fee, announcement fee at the investment planning department, stamp making fee, digital signature purchase, bank account opening fee, invoice printing, service fee initial tax return.

3.2. Procedure completion time

The process of completing the procedures of each business is different, in general it will take from 1 to 3 months according to the process:

- Investment registration (IRC): registration at the Department of Planning and Investment (DPI)

- Certificate Registration (ERC): required.

- Taxes and capital contribution: after receiving the above two papers, the enterprise is responsible for tax registration, tax payment and initial capital contribution.

3.3. Document to establish a joint stock company

Required documents when establishing a joint stock company:

- Bank certificates ensure the fund's investment ability in Vietnam.

- Dossier of application for investment registration certificate

- Certificate of legal status for all shareholders

- Personal information of shareholders and number of shareholders

- Open a capital bank account

- Certificate of Foreign Investment

A Joint Stock Company is a great choice for business investors. If you are looking to quickly establish a joint stock company, YNN is always ready to assist you in every aspect. At YNN, we specialize in providing professional and fast company establishment services with the advantage of providing effective and optimal market penetration solutions. Contact us today at 028 3636 3840 for the best assistance from our experts.

Related: How to set up a business in Vietnam?

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