Transforming a business into a social enterprise

Transforming a business into a social enterprise to meet the goals and orientation of the converted business. Procedures for converting business types are now much more convenient than before. This is a breakthrough development of society to meet the needs of businesses. Follow Long Phan’s article below to help businesses clearly understand the procedures for converting a business into a social enterprise.

Conditions for transforming a business into a social enterprise

Conditions for documents to be received to enter information into the National Information System for Business Registration

• Have enough documents as prescribed in Decree No. 01/2021/ND-CP;
• Have contact address of the person submitting the business registration application;
• Fully paid business registration fees and charges according to regulations.

Conditions for applying for business registration online

• Have all the documents and the contents of those documents are fully declared according to regulations like paper documents and expressed in electronic document form.
• The name of the electronic document must correspond to the name of the document type in the paper file.
• The person with the authority to sign can use a digital signature to sign directly on an electronic document or sign directly on a paper document and scan the paper document.
• Registration information must be complete and accurate according to the information in the paper file; includes information about the applicant’s phone number and email;
• The registration dossier must be authenticated by digital signature or business registration account of the person authorized to sign the application or an authorized person. In case of authorization, a power of attorney must be attached.

Enterprises are not required to stamp business registration applications, resolutions, decisions, and meeting minutes in business registration documents.

Competent authority to resolve

Social enterprises are registered for business according to the provisions of the Enterprise Law. Therefore, the authority to handle documents to convert the type of business to a social enterprise is also in accordance with the provisions of the Enterprise Law.

Accordingly, the Business Registration Office – Department of Planning and Investment where the enterprise is headquartered has the authority to review and approve the type conversion application.

Procedures for transforming a business into a social enterprise

File

According to Clause 2, Article 28 of Decree 01/2021/ND-CP, documents for transforming a business into a social enterprise include:

1. Commitment to implementing social and environmental goals signed by the legal representative of the enterprise. This document form is specified in Appendix II-26 issued with Circular No. 01/2021/TT-BKHDT.
2. Resolutions, decisions and copies of meeting minutes of competent authorities on the approval of the Commitment content, specifically:

• For LLCs with two or more members, partnerships: Resolutions, decisions and meeting minutes of the Board of Members.
• For joint stock companies: Resolutions, decisions and meeting minutes of the General Meeting of Shareholders.
• For one-member limited liability companies: Resolutions and decisions of the company owner.

Enterprises need to fully prepare the above documents to ensure valid documents when submitted to the business registration agency. Preparing complete and accurate documents will help the transition process go smoothly.

Implementation process

The process of transforming a business into a social enterprise includes the following main steps:

Step 1: Submit application

The founder of the social enterprise or the authorized person prepares all documents and registers the business through the electronic business registration portal.

Step 2: Process documents

The Business Registration Office receives and reviews the validity of the application. This agency will implement one of the following two options:

• In case the application is eligible: the Business Registration Office updates information Committing to implementing social and environmental goals in the business profile. After that, this agency will publicize the information on the National Information Portal on business registration.
• In case of refusal: the Business Registration Office shall notify in writing clearly stating the reason and request to amend and supplement the dossier. Enterprises need to comply with these requirements to complete their documents.

Processing time: Within 3 working days from the date of receipt of complete and valid documents.

Businesses need to follow the correct process and prepare complete documents to ensure a smooth transition. Understanding the steps in the process will help businesses be proactive in the implementation process.

Consulting services for transforming a business into a social enterprise

Transforming a business into a social enterprise helps optimize your business goals. To save time preparing and completing documents, businesses can contact Long Phan. Long Phan’s professional consulting services can effectively support the transformation of businesses into social enterprises through the following services:

• Consulting on conditions, procedures and processes for transforming a business into a social enterprise.
• Instructions for completing the target commitment of social enterprises.
• Instructions for preparing complete and accurate documents when registering on the public service portal.
• Business representatives carry out administrative procedures and receive results.
• Answering questions and providing support throughout the transition process.

The above article by Long Phan has helped customers simplify the procedures for transforming a business into a social enterprise. Customers need to comply with regulations and prepare complete documents. For in-depth consulting support on conversion procedures, please contact Long Phan via hotline 0906735386. Long Phan is ready to support customers in completing the conversion process quickly and effectively.