CONVERTING A SOLE PROPRIETORSHIP INTO A LIMITED LIABILITY COMPANY
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This
part is about the procedures for conversion between different types of
enterprises, I shall
tell you about the procedure to switch between sole proprietorship into limited
liability companies. This is a
more special conversion than other forms because it switches from unlimited liability
to limited liability
After ensuring the conditions at Article 199 Law
on Enterprise 2014 to make
the conversion from sole proprietorship into
limited liability companies, business owners will prepare the application for registration of
conversion, which includes the following major components:
- Application form for enterprise registration;
-
Charter of the converted company according to Article 25 of the Law on
Enterprises;
- A
list of creditors and unpaid debts, including tax debts, and deadlines for
paying them; list of current employees; list of unfinished contracts;
- A
list of members as prescribed in Article 26 of the Law on Enterprises in case
of conversion into a multi-member limited liability company; legitimate copies
of ID papers of the company’s members that are individuals and legitimates
copies of certificate of enterprise registration or equivalent documents of the
company’s members being organizations.
- A
written commitment of the private enterprise’s owner to take personal
responsibility with all of his property for every unpaid debt of the private
enterprise and to pay the debts when they are due;
- A
decision and legitimate copy of the minutes of meeting of the Board of members
of the multi-member limited liability company on conversion of the company.
- A
written commitment of the private enterprise’s owner or agreement between the
private enterprise’s owner and other capital contributors on keep using current
employees of the private enterprise.
Within 05 working days from the receipt of the application,
the business registration authority shall consider issuing the Certificate of
Business registration if all of the conditions in Clause 1 of this Article are
satisfied.
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