According to Article 7 of Law on Enterprises 2020, enterprises have the right to freely conduct business in any industry or profession not prohibited by law, and have the right to dispose of the assets or profits of the enterprise. However, enterprises are also governed by numerous laws, decrees, circulars, etc., with regulations tending to change more frequently and rapidly, being issued and applied in shorter timeframes, and particularly, the penalties becoming increasingly severe.
Legal Documents Governing Enterprises:
- Law on Enterprises 2020;
- Law on Investment 2020;
- Civil Code 2015;
- Law on Commerce of Vietnam 2005;
- The Labor Code of Vietnam 2019;
- Law on Social Insurance 2014;
- Law on Employment 2013;
- Law on Trade Union 2012;
- Law on Enterprise Income Tax 2014;
- Law on Value Added Tax 2008;
- Law on Personal Income Tax 2007;
- Law on Tax Administration 2019;
- And several other specialized laws.
As a result, the violations, deficiencies, and mistakes of enterprises in complying with legal regulations are very common, especially among small and medium-sized enterprises.
Common Violations of Enterprises
- Regarding Business Conditions: Business license, sub-licenses, personnel conditions, office equipment conditions, production facilities, etc.
- Regarding Labor Policies – Social Insurance: Internal rules, regulations, collective labor agreements, labor usage reports, etc.
- Regarding Tax – Accounting: Tax calculation methods, record keeping, tax reports, financial statements, etc.
- Regarding Rights and Obligations of Owners, Members, Shareholders.
- Other legal procedure documents depending on the type and field of business operations.
Basic Process of Comprehensive Legal Status Consultation Package
- Listening to the situation and extracting necessary information and documents;
- Checking and reviewing necessary legal documents and papers;
- Consulting and guiding the supplementation and adjustment of documents and papers according to regulations;
- Guiding the storage and preservation of documents and papers;
- Providing free support and answers throughout the enterprise’s operation.
Items Lawyers Will Consult and Check Legal Status
1. Owners – Members – Shareholders
- Capital contribution agreements;
- Company Charter;
- Certificate of Capital Contribution Completion; Member register or shareholder register;
- Minutes of meetings of the Board of Directors/Board of Directors/Decision/Voting Form.
2. Business Conditions
- Head office lease contract;
- Business license;
- Eligibility licenses;
- Other conditions: facilities, personnel...
3. Labor – Social Insurance
- Labor management book;
- Salary scale, payroll;
- Labor contracts, probation contracts;
- Labor regulations;
- Social insurance unit code;
- Documents on registration, increase, decrease of labor.
4. Types of Contracts
- Service contracts;
- Commercial contracts;
- Economic contracts...
5. Tax – Accounting
- Initial tax declaration documents;
- Tax return, License tax return;
- VAT, Personal Income Tax (PIT) forms;
- Financial statement, audit reports (if any)...
Especially: Updating related legal regulations throughout the company’s operation.
Time for Comprehensive Legal Status Consultation
Approximately from 1 to 3 working hours (depending on the type and field of business).
