Frequent legal compliance issues of enterprises in Vietnam
In the course of advising enterprises in Vietnam for their business and conducting legal due diligence on target companies in M&A transactions, we found some legal issues below that many enterprises in Vietnam are frequently involved in. These legal issues construe administrative violations by the Company which are subject to certain fines and sanctions under the relevant regulations. Not making capital contribution in full Under Law on Enterprise 2020, the owner/shareholders/members of a company (hereinafter collectively referred to as “shareholders”) are required to make a capital contribution in full as registered within 90 days from the date of issuance of the enterprise registration certificate. If the shareholders do not contribute capital on time, then the company shall register the actually contributed capital with the licensing authority within 30 days after the deadline of capital contribution. If the Company fails to register the change of capital, the Company shall be s...