Steps for establishing a company according to the law

Article overview

Establishing a company is an important process, requiring customers to comply with correct processes and procedures. Understanding the regulations and preparing complete documents will help this process go smoothly, ensuring the company operates legally and sustainably. The article below will provide detailed instructions on the necessary steps so that customers can establish a company quickly and effectively.

Instructions on the steps for establishing a company
Instructions on the steps for establishing a company

When is it necessary to establish a company?

Deciding to establish a company is an important step, marking the development of business activities. However, not every business activity requires establishing a company. So when should customers consider establishing a company? Here are some factors to consider:

  • Expanding business scale: When business activities develop, customers need to expand scale and access larger markets. Establishing a company will help improve reputation, create brand and attract investment.
  • Limiting legal liability: Establishing a company helps clearly define legal responsibilities between individuals and businesses. In the event of a dispute, your personal assets will be protected.
  • Enjoy tax incentives: Tax policies for businesses have more incentives than for individual businesses.
  • Enhance reputation, create brand: The company is often highly appreciated by customers and partners for its professionalism and reliability.
  • Attracting investment: Establishing a company creates favorable conditions to mobilize capital from investors, contributing to business expansion.

Conditions for establishing a company

According to the provisions of the Law on Enterprise 2020 to establish a company, customers need to fully meet the following conditions:

  • Subjects establishing a company: individuals and organizations with the right to establish, contribute capital to establish and manage a company, except for one of the cases specified in Clause 2, Article 17 of the Law on Enterprises 2020.
  • Head office: Must have a clear and specific address, not violating regulations on construction order and fire prevention.
  • Company name: Not identical or confusing with the name of another registered company.
  • Charter capital: Is the amount of capital contributed or committed to be contributed by members to carry out the company’s business activities. The level of charter capital must be appropriate to the scale and industry of business.
  • Business lines: Must comply with legal regulations and not be on the list of prohibited business lines.

Process and procedures for establishing a company

Prepare information to prepare company establishment documents

1. Choose the type of business:

Choosing the right type of business is the first and very necessary step. Customers need to carefully learn about the characteristics, advantages and disadvantages of each type to make the right decision.

According to the Law on Enterprise 2020, there are the following types of enterprises:

  • Private enterprise;
  • Partnership company;
  • One-member limited liability company;
  • LLC with two or more members;
  • Joint stock company.

2. Choose a business line: Customers need to clearly identify the main business line and secondary business lines (if any). Business lines must be permitted by law and must meet prescribed business conditions (if any).

3. Name the company: The company name must comply with the provisions of law on naming businesses. Specifically, the company name must not be identical or confusing with the name of another registered company. Customers can look up the National Business Registration Portal to check whether the company name has been registered or not.

4. Determine the company headquarters address: The company’s headquarters address must be the actual address where the company’s management and operating activities take place.

5. Identify members/shareholders: Customers need to clearly determine the number of members/shareholders and the capital contribution ratio of each member/shareholder.

6. Determination of charter capital: Charter capital is the total capital contributed or committed to contribute by members/shareholders. The level of charter capital must be appropriate to the scale and industry of business.

7. Determine the legal representative: The legal representative is the person who represents the company to carry out transactions, sign contracts and is responsible before the law for the company’s operations.

Drafting company establishment documents

Company establishment documents include:

  • Application for business registration;
  • Company charter;
  • List of members/shareholders;
  • Copies of identification documents of members/shareholders;
  • Investment registration certificate (if there is a foreign element);
  • Other documents as prescribed by law for each business line.
Company registration documents
Company registration documents

Submit documents to establish a company and receive a business registration certificate

  • Customers can apply to establish a company directly at the Business Registration Office under the Department of Planning and Investment or submit online through the National Business Registration Portal.
  • After submitting the application, customers will receive an application receipt. Within 03 working days, if the application is valid, customers will be issued a Business Registration Certificate.

Make a legal entity seal

After being granted the Business Registration Certificate, customers need to make a legal seal for the company. The seal must comply with regulations on form and content and be registered with the police agency.

Procedures after establishing a company

After registering the company, the following tasks need to be done by the company to ensure legal and favorable business operations:

  • Hang company signs;
  • Register digital signature;
  • Open a bank account;
  • Register for electronic tax payment.

>>> See more: Comprehensive, Reputable and Effective Startup Consulting Services in Ho Chi Minh City.

Services and consulting to support the steps of establishing a professional company in Long Phan

Long Phan provides comprehensive company establishment consulting and support services, helping customers complete procedures quickly and accurately. Our services include:

  • Consulting on choosing the right type of business and business line.
  • Consulting on conditions for establishing a company.
  • Consulting on charter capital, shareholders/capital contributing members.
  • Consulting on legal representatives.
  • Draft complete and accurate company establishment documents.
  • On behalf of customers, submit documents and receive results at the business registration agency.
  • Consulting on making legal seals, hanging signs, opening bank accounts and other post-establishment procedures.
  • Consulting and answering other issues related to the establishment and operation of the company.
Professional company establishment consulting services
Professional company establishment consulting services

Establishing a company is an important decision, marking a new development step in your business activities. To ensure the company establishment process goes smoothly and in accordance with the law, customers should carefully study the regulations and prepare complete and accurate documents. If you need support, please contact Long Phan via the hotline: 0906735386 to receive advice and support from a team of experienced experts.