In the ever-evolving landscape of business, adaptability and diversification are often keys to success. Consequently, companies may find themselves wanting to expand into new sectors or areas of operation, and this could involve adding a conditional business sector. Nevertheless, this process is subject to specific procedures and regulations. Therefore, the question at hand is: What are the procedures for adding a conditional business sector? In this discussion, we will explore the steps and requirements involved in this strategic move, emphasizing the importance of compliance and careful planning.
Question:
My company currently has a registered capital of 5 billion VND and is registered for the business of labor supply within the country (with a required legal capital of 2 billion VND). Now my company wants to add another business line, which is sending laborers to work abroad (with a required legal capital of 5 billion VND). Do I need to increase the charter capital to 7 billion VND? What are the procedures for adding a conditional business sector, and how does it differ from adding a regular business sector?
Answer:
– According to Clause 8 of Article 7 of Decree 01/2021/ND-CP on enterprise registration, it states: “Specialized agencies are responsible for management of conditional business lines, business lines restricted to foreign investors, and inspection of enterprises’ fulfillment of conditions in accordance with regulations of specialized laws.“
– Based on Clause 1 of Article 6 of Decree 38/2020/ND-CP guiding the Law on Vietnamese Employees Working Abroad under Contract, the business line you intend to operate requires a legal capital of 5 billion VND. In this case, if your company wishes to operate in this sector, you need to increase the charter capital to meet the required legal capital of 5 billion VND.
– The dossier, procedures, and process for changing the business sector of a company are carried out according to the provisions of Article 56 of Decree 01/2021/ND-CP on enterprise registration.
Conclusion
In conclusion, the procedures for adding a conditional business sector require a deliberate and legally compliant approach. Additionally, companies must adhere to specific guidelines, seek necessary approvals, and ensure that they meet the relevant criteria for expansion. Moreover, this process not only broadens their scope of operation but also aligns them with regulatory requirements. Furthermore, as businesses aim to thrive in a dynamic market, understanding the procedures for adding a conditional business sector is essential for strategic growth and staying in harmony with the legal framework.
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
