Bui Ngoc Hong, partner, and Dang Bich Xuan, junior associate, Indochine Counsel The charter capital of an enterprise is made up by contributions from shareholders. Each shareholder makes a capital contribution by transferring cash or assets to the company. The receiving company becomes the owner of the assets contributed, and the contributing shareholder becomes the owner of shares representing part ownership in the company. The requirements for transfer of ownership of assets are specified in the Law on Enterprises. For land use rights and other assets that must be registered, the party contributing capital must transfer the ownership of such assets to the company according to prescribed procedures. If assets other than cash or gold are contributed, they must be appraised by the company’s board of directors or a professional appraisal firm. (more…)
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