On June 17, 2020, the Law on Enterprise 2020 was passed by the National Assembly to replace the Law on Enterprise 2014, effective from January 1, 2021.
Some of the typical points in the Law on Enterprise 2020 are the provisions in the reduction of administrative procedures. Specifically, as follows:
According to Clause 2 Article 44 of the Law on Enterprises 2014: Before using the seal, the enterprise must send the seal design to the business registration authority in order for the business registration authority to post it on the National Business Registration Portal. In Article 43 of the Law on Enterprises 2020, this provision is removed.
In addition, the Law on Enterprises 2020 also recognizes a number of new points related to the seal of the enterprise, specifically as follows:
+ Record the form of digital signature seal in accordance with the law on electronic transactions.
+ The law does not stipulate what the sign must show (in the past, the name and code of the enterprise was required). Accordingly, the enterprise decides on its own: Type of seal, quantity, form and content of the seal of the enterprise, branch, representative office and other units of the enterprise.
+ The management and storage of the seal: Due to the company’s charter or the regulations stamped by the enterprise, branch, representative office or other unit of the enterprise. (Previously only recorded the charter).
However, there are shortcomings in Article 43 of the Law on Enterprises 2020: It is not clear how to determine the seal of the enterprise if there is no public database on the seal sample.
2. The enterprise is not required to notify the Business Registration Authority of changes related to the company’s manager
Removing Article 12 of the Law on Enterprises 2014, specifically, previously stated: The enterprise must notify the business registration authority of the changes to the name, address, nationality, ID number, passport number or other ID papers of the following persons within 05 days from the day on which such changes are made:
+ Members of the Board of Directors of the joint-stock company;
+ Members of the Control Board or controllers;
+ The Director or General Director.
In summary, since 2000 up to now, Vietnam has had 04 versions of the Law on Enterprise (the Law on Enterprise 1999; the Law on Enterprise 2005; the Law on Enterprise 2014; the Law on Enterprise 2020). The change can be viewed from many different perspectives, both positive and negative. However, one thing is for sure, the introduction of the Law on Enterprise 2020 more or less will affect the investment and business situation of enterprises in Vietnam.
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