Documents on changes in capital contribution and capital contribution ratio of limited liability companies with 2 or more members

Change in capital contribution and capital contribution ratio This is an important step to help reflect the true financial situation, creating conditions for business members to participate in more effective management. Implementing change documents according to regulations will help businesses improve their reputation and competitiveness in the market. Next, Long Phan will provide some information about documents for changing capital contribution and capital contribution ratio of LLCs with 2 or more members.

What is contributed capital? What is the capital contribution ratio?

Pursuant to Clause 27, Article 4 of the Law on Enterprises 2020, contributed capital is the total value of assets a member has contributed or committed to contribute to a limited liability company or partnership. The capital contribution ratio is the ratio between the capital contribution of a member and the charter capital of a limited liability company or partnership.

Cases where a LLC with 2 or more members changes the capital contribution ratio

Pursuant to Article 51 and Article 52 of the Law on Enterprise 2020, cases where a limited liability company with 2 or more members changes the capital contribution ratio are:

• Transfer of capital contribution.
• Increase or decrease capital contribution.
• The company buys back capital contributions from members.

Procedures for changing capital contribution and capital contribution ratio of LLCs with 2 or more members

Profile components

The registration dossier for changing capital contribution and capital contribution ratio is specified in Clause 2, Article 51 of Decree 01/2021/ND-CP as follows:

• Notice of change in business registration content signed by the legal representative of the enterprise;
• List of members of limited liability companies with two or more members; List of members of the partnership, which does not include the declaration of capital contributing members. The lists must include the signatures of members whose capital contributions are changing; it is not required to have the signatures of members whose capital contributions are unchanged;
• Transfer contract or documents proving completion of transfer in case of transfer of capital contribution; Donation contract in case of donation of capital contribution;
• Document from the Investment Registration Authority approving the capital contribution, share purchase, or capital contribution purchase by foreign investors or foreign-invested economic organizations in cases where procedures must be carried out. Register to contribute capital, purchase shares, purchase capital contributions according to the provisions of the Law on Investment.

Implementation steps

Pursuant to Article 51 of Decree 01/2021/ND-CP, the steps to change the capital contribution and capital contribution ratio of LLCs with 2 or more members are:

Step 1: Submit application

Customers submit documents at the Business Registration Office – Department of Planning and Investment where the company is headquartered.

Step 2: Document processing

• After receiving the business registration dossier, the Business Registration Office issues a receipt and checks the validity of the dossier.
• Within 03 working days, the Business Registration Office completes the settlement and returns the results if the application is valid.
• In case the application is not valid, the Business Registration Authority must notify in writing the content that needs to be amended or supplemented to the applicant.

Consulting services and support for preparing documents to change capital contribution and capital contribution ratio of limited liability companies with 2 or more members

With a team of experts with many years of consulting experience in this field, Long Phan provides consulting services and support in preparing documents to change capital contributions, as follows:

• Consulting on regulations on changes in capital contribution.
• Assist in drafting and completing necessary documents.
• Customer representative submits the application to the Department of Planning and Investment.
• Monitor processing progress, update application status, and notify customers.
• Delivery and receipt of documents within the city. Ho Chi Minh.
• Consulting on regulations and supporting other related procedures.

Consulting services and support for preparing documents to change capital contribution and capital contribution ratio of limited liability companies with 2 or more members not only help businesses comply with legal regulations but also optimize the process of capital management. Let Long Phan accompany you in the process of changing capital contribution and capital contribution ratio to ensure all procedures are carried out quickly and accurately. Contact Long Phan immediately via hotline: 0906735386 to receive the most dedicated package advice!