Why do more and more businesses register virtual ‘terrible’ capital?

According to legal experts, the reason why businesses deliberately “polish” their names with “heavenly” capital is due to the open regulations of the enterprise law.

Analysis of the “super-enterprises” claiming to have capital of up to hundreds of trillions of dong caused a stir in public opinion in the past time, most of the lawyers said that there were unusual and unbelievable signs, but that action is not illegal.

The reason is that the law does not currently stipulate how much minimum and maximum capital an enterprise must register, except for businesses operating in industries that require a minimum legal capital such as banking, insurance… Therefore, the enterprise’s self-registration of capital does not violate the Law on Enterprises and guiding documents when establishing the enterprise.

The legal regulations on enterprises encourage people to invest in business capital and self-declare information on charter capital when making business registration documents, instead of before the State had to check and verify that enterprises have enough amount of registration or not for new establishment.

According to the provisions of the Enterprise Law 2020, in cases where an enterprise does not fully contribute capital within the statutory 90 days, the enterprise is entitled to an extension of 60 days to adjust the contributed capital.

After the next 60 days, if there is no move to contribute enough capital, the enterprise must carry out procedures to cancel business registration and establish an enterprise. In the final step, if enterprises, individuals and legal entities fail to exercise their rights as permitted by law, they will be fined from 10-20 million VND.

https://vtc.vn/vi-sao-xuat-hien-ngay-cang-nhieu-doanh-nghiep-dang-ky-von-khung-ao-ar631796.html

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