Transitioning a gift contract into a business purchase contract is a significant legal and financial process. Furthermore, it involves altering the nature of an agreement from one of gifting to a formal business transaction, potentially impacting the financial and tax implications for the parties involved. Therefore, understanding the steps and requirements for this change is essential to ensure legal compliance and protect the interests of all parties.
Question:
My business is a private enterprise that has changed its legal representative and made a contract as a gift. The business license has already been issued. But now I want to change the contract to a transfer contract. What procedures do I need to follow to make it valid?
Answer:
The dossier, procedure, and process for changing the owner of a private enterprise are carried out in accordance with the regulations in Article 54 of Decree No. 01/2021/NĐ-CP on business registration. However, in the case of changing the owner of a private enterprise through a gift and having already completed the procedure and obtained a Certificate of Business Registration, changing the gift contract to a purchase and sale contract for the business is not required.
Conclusion
In summary, changing a gift contract to a business purchase contract is a complex endeavor that requires careful consideration of legal, financial, and tax implications. Additionally, all parties involved must seek legal counsel and follow the appropriate procedures to ensure a smooth and lawful transition. By adhering to the necessary steps and requirements, businesses and individuals can navigate this process effectively while safeguarding their legal rights and interests.
HMLF is always available to offer assistance in understanding the procedures with authorities.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
