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How should a company proceed if it wants to change its business entity type?

Question:

I would like to inquire about the procedures for transferring the contributed capital of a Limited Liability Company (LLC). Specifically, I have received 20% of the contributed capital from the current owner. I am not sure which documents I need to prepare and how to proceed.

Answer:

In the case where the owner transfers 20% of the contributed capital to another individual and the company becomes a two-member Limited Liability Company (LLC), it is recommended that the company follows the procedure for converting the type of company from a single-member LLC to a two-member LLC as stipulated in Article 2 of Decree No. 01/2021/NĐ-CP regarding enterprise registration.

– The company can refer to the procedures for converting the type of company (from a single-member LLC to a two-member LLC) and the forms on the website: “www.dangkykinhdoanh.gov.vn / News / Latest News / Reference forms” for enterprise registration according to the provisions of  Law on Enterprises No. 59/2020/QH14.

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