Establishing a one-member limited liability company – Documents and procedures

Article overview

Establishing a one-member limited liability company brings many outstanding benefits to investors, helps protect personal assets, optimize business management and development. With a single owner, this type of business makes it easy to control operations and finances, while minimizing complex administrative procedures. The article below will provide detailed information about the documents and procedures necessary to register to establish a one-member limited liability company today.

How to establish a one-member limited liability company
How to establish a one-member limited liability company

Where to Register to Establish a One-Member Limited Liability Company?

According to the provisions of Article 14 of Decree 01/2021/ND-CP, registration to establish a one-member limited liability company in Vietnam is carried out at the Business Registration Office under the Department of Planning and Investment where the enterprise is located. headquarters location. Customers need to choose a registration location in accordance with their business strategy and current regulations.

Registration locations include:

  • Department of Planning and Investment in provinces and centrally run cities;
  • Business Registration Offices in districts, towns, and cities of the province.

Procedure for Registering to Establish a One-Member Limited Liability Company

Components of Documents Needed to Prepare

According to the provisions of Article 24 of Decree 01/2021/ND-CP when registering to establish a one-member LLC, customers need to prepare 01 set of establishment registration documents including the following documents:

  1. Application for business registration.
  2. Company charter.
  3. Copies of documents:
  • Legal documents of the legal representative.
  • Legal documents of the owner (individual or organization, except the State) and authorized representative (if any).
  • Legal documents of the foreign organization (if the owner is a foreign organization), consular legalization.
  • Investment registration certificate (if there is a foreign investor or economic organization with foreign investment).

Note: All copies of documents must be authenticated or bring the originals for comparison.

Documents need to be prepared
Documents need to be prepared

Registration Procedures

According to the provisions of Article 24 and Article 32 of Decree No. 01/2021/ND-CP, procedures for registering to establish a one-member limited liability company are carried out through the following steps:

Step 1: Prepare documents

The individual registering must fully prepare the dossier, including documents specified in Article 24 of Decree 01/2021/ND-CP.

Step 2: Submit application

Individuals registering to establish a one-member limited liability company must submit documents to the Business Registration Office of the province where the enterprise is headquartered.

Application form:

  • Submit application directly;
  • Submit application online;
  • Submitted via postal and telecommunications services.

Step 3: Evaluate documents and receive results

  • The Business Registration Office issues the Business Registration Certificate, within 03 working days from the date of receipt of valid documents.
  • In case the dossier is not valid or the business name requested to be registered does not comply with regulations, the Business Registration Office must notify you in writing of the content within 03 working days from the date of receipt of the dossier.

Note: If past the above deadline the Business Registration Certificate is not issued, or the notice requesting amendments or supplements to the business registration dossier is not received, the business founder or enterprise has the right to Complaints and denunciations according to the provisions of law on complaints and denunciations.

Fees and Charges for Establishing a Single Member LLC

According to the provisions of the Table of Fees and Business Registration Fees in Circular 47/2019/TT-BTC, the main fees when registering to establish a single-member limited liability company include:

  • Business registration fee: 50,000 VND/time;
  • Fee for publishing registration content: 100,000 VND/time;
  • Free for online registration and conversion from business households.
Current fees for business registration
Current fees for business registration

Advantages and Disadvantages of Single Member LLC

Choosing the one-member LLC type brings many great benefits to businesses:

Advantages of a one-member limited liability company:

  • Limited liability: Company owners are only responsible for debts and financial obligations within the committed capital amount, protecting personal assets from risks related to the company.
  • Absolute control: The owner has full authority to decide all matters of the company without having to consult other members.
  • Flexibility in management: Because there is only one owner, the decision-making and management process of the company is quick and easy.
  • Building reputation: A one-member LLC has a clear legal status, helping to increase reliability with partners and customers.
  • Ability to raise capital from other organizations: Even though there is only one member, the company can still raise capital from external sources such as bank loans or other investors.

Disadvantages of a one-member limited liability company:

  • Limitations in capital mobilization: Because there is only one owner, a single-member LLC has more difficulty raising capital from many outside sources than other types of companies with many shareholders.
  • Difficulties in expanding scale: Company management and development may be limited by the owner’s financial and human resources capabilities.
  • Difficulty in transferring ownership: Transferring a company or changing owners faces many difficulties and more complicated legal procedures than other types of companies.
  • Risk if the owner is inexperienced: If the owner lacks experience or does not have management capacity, the company may have difficulty operating and developing.

Full Service of Establishing a Limited Liability Company in Long Phan

Establishing a single-member limited liability company is an important first step in the business journey. Long Phan will accompany customers in each stage of registering to establish a one-member LLC.

Long Phan provides comprehensive services including:

  • In-depth advice on procedures for registering to establish a one-member limited liability company.
  • Support customers in drafting documents to register to establish a one-member limited liability company.
  • Support customer representatives to work and submit documents with competent authorities.
  • Consulting on the pros and cons when establishing a single-member limited liability company.
  • Support for changing business registration, establishing branches/representative offices, and other issues related to company operations.

>>> Reference: Comprehensive business establishment registration service in Ho Chi Minh City.

Establishing a single-member limited liability company is an important first step for every entrepreneur in Vietnam. Long Phan will accompany you in each stage of registration and business. For detailed advice and support in establishing a professional company, please contact Long Phan immediately via the hotline: 0906735386 to receive dedicated guidance from our team of experts.