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ISSUES TO BE CONSIDERED WHEN CHANGING THE TYPE OF ENTERPRISES - ipic, luat, luật, tư vấn đầu tư, tu van dau tu, tư van doanh nghiep

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ISSUES TO BE CONSIDERED WHEN CHANGING THE TYPE OF ENTERPRISES

 Changing the type of enterprises after a period of operation is becoming more and more popular. After these running, however, there are some issues such as fixed assets, liabilities, goods or issues documents related to the company after already done conversion made businesses confused and get in trouble. With many years of experience in the field of business, IPIC Law Firm would like to make these following points when changing the type of business as follows:

 1. Legal basis

• Enterprise Law 2014

• Decree 78/2015 / ND-CP

2. Principal contents of the application form for conversion of enterprise type

For enterprises when they want to change their type of business, a written request for conversion in a dossier must include at least the following:

• The name of company;

• Address of the head office, telephone number, fax number, email address (if got);

• The subject of business;

• Current charter capital and charter capital after raising additional contributed capital or shares;

• Form of conversion: A list of members and a valid copy of one of the personal identification papers specified in Article 10 of Decree No. 78/2015 / ND-CP of the members in company if the members are individuals and valid copies of Business Registration Certificate or other equivalent documents if the company's member is an organization; Capital contribution of each member to limited liability companies and partnerships; number of shares of founding shareholders, types of shares, par value of shares and total number of authorized share to be offered for sale to joint-stock companies.

3. The noted points when changing the normal business type will lead to the change of legal entity’s seal

• Enterprises need to pay attention to complete accounting books, taxes, and internal documents affix old seal in valid, because when receiving a new seal, the enterprise will have to return the old seal to rescind. In that case, documents which previously needed the old seal will not be available to be stamped legally.

• Regarding the issue of liabilities, fixed assets according to the law, individual businesses and private business owners must commit to take personal responsibility with all their assets for all debts non-payment of private enterprises and commitment to pay all debts in due before changing the type of business.

• The enterprise itself needs to understand the operating regulations and interests of the type of company that it wants to convert to determine whether its desire to convert is appropriate or not before deciding. Avoid the desire to convert because of temporary psychological trends.

• Besides, businesses should also pay attention to the process, procedures and conditions for conversion of business types to be more proactive in conducting the conversion.

• Finally, after completing all the procedures after deciding to change the type of business, the enterprise conducts procedures for changing seals and issuing official letters to notify tax administration agencies about transforming your company's business type.

The above notes when business transformation conducted that needs attention. IPIC Law Firm is very pleased to accompany with customers in resolving all legal issues. Please contact us for the best use of consulting services.

Best regards!

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