What is charter capital? When establishing a business/company, how much charter capital/business capital should be registered? Is there a minimum level of charter capital for a business/company according to the law? Do I need to prove charter capital/business capital?

What is charter capital?

Charter capital is all assets (including: Money, intellectual property, real estate, land use rights, etc. according to the provisions of the 2015 civil code)of organizations and individuals registering to contribute capital to a business/company registered for establishment within a certain period of time or contribute capital or receive transfer to another company as a member, shareholders.

When establishing a company/business, it is necessary to register the minimum charter capital and how much is appropriate according to the law?

When establishing a business/company, except for the categories of industries that require a sufficient amount of legal capital (minimum capital according to legal regulations), there is no regulation that the company/business must register. What is the minimum charter capital required to be established to operate?

In fact, there are many companies/enterprises that register a charter capital of 1 million VND to register to establish a company/enterprise, this is not prohibited by law, however for customer business activities, The transaction partner will base on the registered capital of the enterprise/company to determine the size of the company/enterprise.

Currently, according to the law, there are 70 professions that require minimum legal capital.

For example, industries that require businesses/companies to register a minimum charter capital according to the legal capital to be allowed to operate those businesses:

+ Real estate buying, selling and leasing business as an investor - Legal capital: 20 billion VND. (6810- Real estate business, land use rights belonging to the owner, user or tenant) – Decree 76/2015 ND-CP.

+ Travel service business - Legal capital from 100 million to 500 million depending on the scale and content of domestic and foreign travel business.- Decree 168/2017/ND-CP

Is it necessary to prove charter capital/business capital when registering to establish a business/company? And is there any agency that checks capital?

Pursuant to the provisions ofArticle 3 of Circular 09/2015/ BTC and Article 6 of Decree 222/2013/ND-CP stipulates:

Article 3. Payment methods in capital contribution transactions and buying, selling, and transferring capital contributions to other enterprises

1. Enterprises do not use cash (paper money, coins issued by the State Bank) to pay when performing capital contribution transactions and buying, selling, and transferring capital contributions into another business.

2. When carrying out capital contribution transactions and buying, selling, and transferring capital contributions to other businesses, businesses use the following forms:

a) Payment by Check;

b) Payment by payment order - money transfer;

c) Other appropriate forms of non-cash payment according to current regulations.

Based on the above regulations, if you are an owner, capital contributing member, or individual shareholder, the law still allows you to contribute registered charter capital. Sign in cash form. The above capital contribution will be committed by the owner within 90 days from the date of issuance of the business registration certificate and no agency will come to check the cash capital contribution mentioned above. above.

Refer to the article: >>>Business/company establishment services