Some requirements for valuation of assets contributed as capital to businesses today

Article overview

Valuation of assets contributed as capital to the business is a key step to ensure transparency and fairness in business cooperation. Accurate valuation helps investors clearly understand the asset value, thereby determining the capital contribution ratio and benefits of the parties. This process also helps limit financial risks, creating a solid foundation for the long-term development of the business in a competitive business environment.

Requirements for valuation of assets contributed as capital to an enterprise
Requirements for valuation of assets contributed as capital to an enterprise

Regulations on capital contribution assets

Valuation of assets contributed as capital complies with the provisions of Article 34 of the Law on Enterprises 2020. Determination of the value of assets contributed as capital must ensure legality and legal ownership. The valuation process is carried out according to specific regulations.

Legal capital contribution assets include:

  • Vietnamese Dong;
  • Freely convertible foreign currencies;
  • Yellow;
  • Land use rights;
  • Intellectual property rights;
  • Technology and technical know-how;
  • Other assets can be priced in Vietnam Dong.

Article 34 of the Law on Enterprises 2020 clearly stipulates that only individuals and organizations that are legal owners or have legal use rights to assets are allowed to use those assets to contribute capital. Capital contributions must be made according to the correct process and have complete documents proving ownership or legal use rights to the contributed assets.

Principles for valuation of assets contributed as capital in an enterprise

Article 36 of the Law on Enterprises 2020 stipulates principles for valuation of assets contributed as capital. Valuation must follow the consensus principle or go through a professional valuation organization. The pricing process must ensure transparency and accuracy.

Principles for valuing assets contributed as capital are applied as follows:

For assets contributed as capital when establishing an enterprise:

  • Founding members and shareholders set prices according to the principle of consensus;
  • Or hire a professional appraisal organization;
  • In case an appraisal organization determines the price, it must be approved by more than 50% of the members and founding shareholders.

For assets contributed as capital during operations:

  • Valuation agreed upon by the owner, Board of members, Board of Directors or capital contributors;
  • Or hire a professional appraisal organization;
  • The value must be approved by capital contributors and stakeholders.
Principles of asset valuation
Principles of asset valuation

Regulations on penalties for intentionally valuing assets contributed as capital at an incorrect value

According to Point b, Clause 3, Article 46 of Decree 122/2021/ND-CP, violations in the valuation of contributed assets will be severely punished. Penalty levels are clearly specified and apply to both organizations and individuals. Sanctions are intended to ensure the strictness of the law.

Specific penalties are as follows:

  • For organizations: Fine from 30,000,000 VND to 50,000,000 VND;
  • For individuals: Fine is equal to 1/2 the fine applicable to organizations.

Penalties include:

  • Failure to carry out capital adjustment procedures according to regulations;
  • No change in members or founding shareholders at the end of the capital contribution period;
  • Intentionally valuing capital contribution assets at an incorrect value.
Penalties for incorrect property valuation
Penalties for incorrect property valuation

Consulting services on valuation of assets contributed as capital to businesses in Long Phan

Long Phan provides professional consulting services on valuation of assets contributed as capital. Long Phan’s team of experts has a deep understanding of corporate law and valuation process. Main services include:

  • Consulting on the process of valuing contributed assets;
  • Support related procedures;
  • Appraisal of value of contributed assets;
  • Prepare valuation documents and reports;
  • Consulting on resolving disputes on valuation.

Customers who need advice on valuation of assets contributed as capital to a business, please contact Long Phan via the hotline 0906735386 for detailed consulting support. Long Phan’s team of experts is committed to providing optimal solutions, ensuring rights and compliance with law regulations in the process of valuing customers’ capital contributions.