GUIDE ON CONVERTING A LIMITED LIABILITY COMPANY INTO A JOINT-STOCK COMPANY

To satisfy the needs of investment and new business fields, Laws recognize the form of corporate reorganization through the change of legal form from a type of business to another type. After researching Enterprise Law 2014, we can know the procedures for conversion between the Limited liability company (Co., Ltd) and Joint stock company (JSC) as follows:

A limited liability company may be converted into a joint-stock company in one of the following manners:

a) Conversion into a joint-stock company without raising capital from other entities, without selling stakes to other entities;

b) Conversion into a joint-stock company by raising capital from other entities;

c) Conversion into a joint-stock company by selling part of or all of the stakes to one or some other entities;

d) Combination of all methods above

After choosing way to convert, we shall conduct conversion enterprise registration dossier:

Specifically, application for enterprise registration in case of this conversion includes:

- Application form for enterprise registration;

- Charter of the converted company according to Article 25 of the Law on Enterprises;

- A list of members and 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.

- Transfer contract or documents proving completion of the transfer; or giveaway contract in case the company’s owner gives away part of charter capital to another individual or organization; the decision of the company’s owner on raising more capital (if any).

The company shall register the conversion with a business registration authority within 10 days from the day on which the conversion is completed.

Within 05 working days from the receipt of the application, the business registration authority shall reissue the Certificate of Business registration.

Note:

The converted company obviously inherits all of the lawful rights and interests, debts including tax debts, employment contracts, and other obligations of the old company.