The process of changing the type of business entity is a significant decision for any enterprise, and it’s governed by a set of regulations that ensure a smooth transition while maintaining legal compliance. Whether a business is shifting from a sole proprietorship to a corporation or undergoing any other form of conversion, understanding and following these regulations is crucial. In this discussion, we will delve into the regulatory framework surrounding the conversion of business entity types, shedding light on the necessary procedures and requirements that businesses need to adhere to when making this transition.
Question:
The owner of a limited liability company (LLC) transferred 20% of the capital to another member and changed the type of company to a two-member LLC. I would like to ask whether, when issuing the capital contribution certificate, it is also issued to the owner (the person who transferred the capital) or not?
Answer:
– You should carry out the procedures, sequence, and formalities for converting the type of business entity from a single-member LLC to a two-member LLC according to the regulations in Clause 2, Article 26 of Decree No. 01/2021/NĐ-CP on business registration
– Regarding changes to the company, the Business Registration Office issues the Certificate of Business Registration for changes to the registered information of the business within 3 working days from the date of receiving a valid application file. The transferring member does not receive a capital contribution certificate.
– You can refer to the procedures and download the application form for change registration at the following address: “www.dpi.hochiminhcity.gov.vn/ Business Registration/ Conversion of Business Type/ select the corresponding type”.
Conclusion
In the dynamic world of business, the ability to adapt and evolve is essential for long-term success. The regulations governing the conversion of business entity types provide a structured framework for enterprises to make these changes efficiently and within the bounds of the law. By following these regulations diligently, businesses can seize new opportunities, optimize their structures, and ensure a seamless transition to their desired entity type, ultimately contributing to their growth and sustainability.
HMLF is always available to offer assistance in understanding the procedures with authorities.
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Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
