The Law on Enterprises of Vietnam 2020 – Law No: 59/2020/QH14

1. What is the Law on Enterprises?

The Law on Enterprises is a legal document that systematically contains legal provisions regulating the conditions, procedures for the establishment, organization, and operation of limited liability companies, joint-stock companies, partnerships, and private enterprises.

2. What is the most recent Law on Enterprises?

The Law on Enterprises of Vietnam 2020 was passed during the 9th session of the 14th National Assembly on June 17, 2020, with several notable new points, such as:

• Changing the definition of state-owned enterprises, specifically including enterprises where the State holds more than 50% of the charter capital or total voting shares, as stipulated in Article 88 of the Law on Enterprises 2020.

Currently, under the Law on Enterprises 2014: a state-owned enterprise is defined as an enterprise where the State holds 100% of the charter capital.

• Removing the requirement to notify the enterprise’s seal sample before use.

According to the Law on Enterprises 2014, before using the seal, enterprises were required to notify the business registration authority to publicly post the seal sample on the National Business Registration Portal.

• Adding new subjects prohibited from establishing and managing enterprises, such as legal entities banned from doing business or prohibited from operating in certain fields under the provisions of the Criminal Code.

The Law on Enterprises of Vietnam 2020 (Law No. 59/2020/QH14) took effect on January 1, 2021, replacing the previous Law on Enterprises 2014.