{"id":2001,"date":"2021-07-27T19:26:43","date_gmt":"2021-07-27T12:26:43","guid":{"rendered":"https:\/\/pl-partners.vn\/?p=2001"},"modified":"2023-01-13T17:07:11","modified_gmt":"2023-01-13T10:07:11","slug":"new-highlights-of-the-law-on-enterprise-2020-part-1","status":"publish","type":"post","link":"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/","title":{"rendered":"New highlights of the law on enterprise 2020 &#8211; Part 1"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">N\u1ed9i dung b\u00e0i vi\u1ebft<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#PART_1_CHANGES_IN_GENERAL_PROVISIONS\" title=\"PART 1: CHANGES IN GENERAL PROVISIONS\">PART 1: CHANGES IN GENERAL PROVISIONS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#1_SUPPLEMENTATIONS_AND_AMENDMENTS_TO_SOME_DEFINITIONS\" title=\"1. SUPPLEMENTATIONS AND AMENDMENTS TO SOME DEFINITIONS\">1. SUPPLEMENTATIONS AND AMENDMENTS TO SOME DEFINITIONS<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#11_Supplementing_the_definition_of_%E2%80%9Crelatives%E2%80%9D\" title=\"1.1. Supplementing the definition of &#8220;relatives&#8221;\">1.1. Supplementing the definition of &#8220;relatives&#8221;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#12_Supplementing_the_definition_of_%E2%80%9Crelated_person%E2%80%9D\" title=\"1.2. Supplementing the definition of \u201crelated person\u201d\">1.2. Supplementing the definition of \u201crelated person\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#13_Redefining_the_concept_of_state-owned_enterprises\" title=\"1.3. Redefining the concept of state-owned enterprises\">1.3. Redefining the concept of state-owned enterprises<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#2_ADJUSTMENT_ON_THE_RIGHTS_AND_OBLIGATIONS_OF_SOCIAL_ENTERPRISES\" title=\"2. ADJUSTMENT ON THE RIGHTS AND OBLIGATIONS OF SOCIAL ENTERPRISES\">2. ADJUSTMENT ON THE RIGHTS AND OBLIGATIONS OF SOCIAL ENTERPRISES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#3_ABOLITION_OF_REPORTING_CHANGES_IN_INFORMATION_OF_THE_ENTERPRISES_EXECUTIVE\" title=\"3. ABOLITION OF REPORTING CHANGES IN INFORMATION OF THE\u00a0 ENTERPRISE&#8217;S EXECUTIVE\">3. ABOLITION OF REPORTING CHANGES IN INFORMATION OF THE\u00a0 ENTERPRISE&#8217;S EXECUTIVE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#4_AMENDMENTS_TO_LEGAL_REPRESENTATIVE\" title=\"4. AMENDMENTS TO LEGAL REPRESENTATIVE\">4. AMENDMENTS TO LEGAL REPRESENTATIVE<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-1\/#PL_AND_PARTNERS_LAW_FIRM\" title=\"PL AND PARTNERS LAW FIRM\">PL AND PARTNERS LAW FIRM<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"PART_1_CHANGES_IN_GENERAL_PROVISIONS\"><\/span><span style=\"color: #000080; font-size: 21px;\"><strong>PART 1: CHANGES IN GENERAL PROVISIONS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Law on Enterprise 2020, which officially takes effect from January 1, 2021, has promptly amended and supplemented new terms and regulations to make enterprise laws more suitable for the current and actual practice, simultaneously removed shortcomings and inadequacies in the previous law, created a favorable and flexible investment and business environment following the global trend.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In order to support enterprises update information in a timely and accurate manner in accordance with new regulations of the law, PL and Partners will provide information about changes in Law on Enterprise 2020.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">PL and Partners would like to provide readers with new points in the general provisions of the Law on Enterprise 2020 through the following article.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"1_SUPPLEMENTATIONS_AND_AMENDMENTS_TO_SOME_DEFINITIONS\"><\/span><span style=\"font-size: 19px; color: #000080;\"><strong>1. SUPPLEMENTATIONS AND AMENDMENTS TO SOME DEFINITIONS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"11_Supplementing_the_definition_of_%E2%80%9Crelatives%E2%80%9D\"><\/span><span style=\"font-size: 16px; color: #000000;\"><strong>1.1. Supplementing the definition of &#8220;relatives&#8221;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Clause 22, Article 4 of the Law on Enterprise 2020 adds the definition of &#8220;<strong>relatives<\/strong>&#8220;.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Accordingly, people such as spouses, parents, siblings, etc. will be collectively called relatives.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">This is a completely new definition compared to the Law on Enterprise 2014. This change helps to streamline words, and sentences in regulations.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">For example:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Previously, the Law on Enterprise 2014 did not define relatives. Therefore, regulations which are regarding relatives must be listed in a wordy way:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\"><em>&#8220;the spouse, biological father, adoptive father, biological mother, adoptive mother, biological children, adopted children, biological brother, biological sister, biological younger brother;&#8230;&#8221;<\/em><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Currently, the Law on Enterprise 2020 allows us to briefly write &#8220;<em>relatives<\/em>&#8220;.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"12_Supplementing_the_definition_of_%E2%80%9Crelated_person%E2%80%9D\"><\/span><span style=\"font-size: 16px; color: #000000;\"><strong>1<\/strong><strong>.2. Supplementing the definition of \u201crelated person\u201d<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The Law on Enterprise 2020 adds the <strong>Controller<\/strong> and all <strong>Legal Representatives<\/strong> to the list of related person.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"13_Redefining_the_concept_of_state-owned_enterprises\"><\/span><span style=\"font-size: 16px; color: #000000;\"><strong>1.3. Redefining the concept of state-owned enterprises<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table border=\"3\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" width=\"313\"><span style=\"font-size: 16px; color: #000000;\"><strong>Law on Enterprise 20<\/strong><strong>14<\/strong><\/span><\/td>\n<td style=\"text-align: center;\" width=\"313\"><span style=\"font-size: 16px; color: #000000;\"><strong>Law on Enterprise 2020<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: justify;\" width=\"313\"><span style=\"font-size: 16px; color: #000000;\">Clause 8, Article 4 stipulated that State-owned enterprises are enterprises in which the State holds 100% of charter capital.<\/span><\/td>\n<td style=\"text-align: justify;\" width=\"313\"><span style=\"font-size: 16px; color: #000000;\">An enterprise of which more than 50% charter capital or voting shares is held by the State.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In fact, the definition of State-owned enterprises has been expanded more than before and these can be managed in the form of a limited liability company or a joint stock company.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"2_ADJUSTMENT_ON_THE_RIGHTS_AND_OBLIGATIONS_OF_SOCIAL_ENTERPRISES\"><\/span><span style=\"font-size: 19px; color: #000080;\"><strong>2. ADJUSTMENT ON THE RIGHTS AND OBLIGATIONS OF SOCIAL ENTERPRISES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table border=\"3\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" width=\"321\"><span style=\"font-size: 16px; color: #000000;\"><strong>Law on Enterprise 20<\/strong><strong>14<\/strong><\/span><\/td>\n<td style=\"text-align: center;\" width=\"321\"><span style=\"font-size: 16px; color: #000000;\"><strong>Law on Enterprise 2020<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"321\">\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The rate of profit that must be retained annually for re-investment of social enterprises was 51% of total profit.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">=&gt; Without specifying whether it is prior or subsequent to tax.<\/span><\/p>\n<\/td>\n<td width=\"321\">\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The rate of profit that must be retained annually for re-investment of social enterprises is 51% of the annual <b>profit after tax.<\/b><\/span><\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"3_ABOLITION_OF_REPORTING_CHANGES_IN_INFORMATION_OF_THE_ENTERPRISES_EXECUTIVE\"><\/span><span style=\"font-size: 19px; color: #000080;\"><strong>3. ABOLITION OF REPORTING CHANGES IN INFORMATION OF THE\u00a0 ENTERPRISE&#8217;S <\/strong><\/span><span style=\"font-size: 19px; color: #000080;\"><strong>EXECUTIVE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table border=\"3\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" width=\"321\"><span style=\"font-size: 16px; color: #000000;\"><strong>Law on Enterprise 20<\/strong><strong>14<\/strong><\/span><\/td>\n<td style=\"text-align: center;\" width=\"321\"><span style=\"font-size: 16px; color: #000000;\"><strong>Law on Enterprise 2020<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: justify;\" width=\"321\"><span style=\"font-size: 16px; color: #000000;\">An enterprise must report to the Business Registration Authority the changes in information of its executive.<\/span><\/td>\n<td style=\"vertical-align: top;\" width=\"321\"><span style=\"font-size: 16px; color: #000000;\">This provision is abolished.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"4_AMENDMENTS_TO_LEGAL_REPRESENTATIVE\"><\/span><span style=\"font-size: 19px; color: #000080;\"><strong>4. AMENDMENT<\/strong><strong>S<\/strong><strong> TO LEGAL REPRESENTATIVE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The Law on Enterprise 2020 has made some adjustments to cases in which the appointing of legal representatives is prohibited.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">First, changing the phrase &#8220;being sentenced to prison&#8221; to <strong>&#8220;serving an imprisonment sentence<\/strong>&#8220;.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The reason is, if people are sentenced to prison, they can suspend the sentence and do not have to serve an imprisonment sentence.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In addition, the Law on Enterprise 2020 also supplements several cases:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 16px; color: #000000;\">Facing criminal prosecution;<\/span><\/li>\n<li><span style=\"font-size: 16px; color: #000000;\">Serving an administrative sanction in a correctional institution or rehabilitation center;<\/span><\/li>\n<li><span style=\"font-size: 16px; color: #000000;\">Having difficulty in controlling his\/her behaviors;<\/span><\/li>\n<li><span style=\"font-size: 16px; color: #000000;\">Being banned by the Court from holding certain positions, practicing certain professions, or doing certain jobs.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\"><a href=\"https:\/\/pl-partners.vn\/en\/\" target=\"_blank\" rel=\"noopener\"><strong>PL and Partners Law Firm<\/strong><\/a> has introduced to you some new points in the General provisions of the Law on Enterprise 2020.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">We do hope that the above information will help you have a better understanding of this law.<\/span><\/p>\n<p>See more: <a href=\"https:\/\/pl-partners.vn\/en\/new-highlights-of-the-law-on-enterprise-2020-part-2\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #0000ff;\"><strong>New highlights of the law on enterprise 2020 \u2013 Part 2<\/strong><\/span><\/a><\/p>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"PL_AND_PARTNERS_LAW_FIRM\"><\/span><span style=\"color: #ed1c24;\"><strong>PL <\/strong><strong>AND<\/strong> <strong>PARTNERS<\/strong><strong> LAW FIRM<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #282828;\"><span style=\"color: #000000;\"><em><strong>Head<\/strong><strong>quarters<\/strong><strong>:<\/strong><\/em><\/span> <span style=\"color: #000000;\">46<sup>th<\/sup> Floor, Bitexco Financial Tower, No. 2 Hai Trieu, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam<\/span><\/span><\/p>\n<p><span style=\"color: #282828;\"><em><span style=\"color: #000000;\"><strong>O<\/strong><strong>ffice:<\/strong><\/span><\/em> <span style=\"color: #000000;\">Lot 1.16 Viva Riverside, 1472 Vo Van Kiet, Ward 3, District 6, HCMC<\/span><\/span><\/p>\n<p><span style=\"color: #282828;\"><em><span style=\"color: #000000;\"><strong>Hotline:<\/strong><\/span><\/em> <span style=\"color: #000000;\">093.1111.060<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Email:\u00a0<\/em><\/strong><a style=\"color: #000000;\" href=\"http:\/\/info@pl-partners.vn\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">info@pl-partners.vn<\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Facebook:<\/em><\/strong>\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.facebook.com\/PLLaw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">www.facebook.com\/PLLaw<\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Website:\u00a0<\/em><\/strong><a style=\"color: #000000;\" href=\"https:\/\/pl-partners.vn\/\"><em>www.PL-PARTNERS.vn<\/em><\/a><em> \u2013 <\/em><a style=\"color: #000000;\" href=\"http:\/\/www.hoidapluat.net\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>www.HOIDAPLUAT.net<\/em><\/a><em> \u2013 <\/em><a style=\"color: #000000;\" href=\"http:\/\/www.thutucphaply.org\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>www.THUTUCPHAPLY.org<\/em><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Law on Enterprise 2020, which officially takes effect from January 1, 2021, has been promptly amended and supplemented with new terms and regulations to make it more suitable for the current and actual practice, stimultaneously<\/p>\n","protected":false},"author":18,"featured_media":2010,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[168],"tags":[],"class_list":["post-2001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-law-focus-tdl"],"_links":{"self":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts\/2001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/comments?post=2001"}],"version-history":[{"count":0,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts\/2001\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/media\/2010"}],"wp:attachment":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/media?parent=2001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/categories?post=2001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/tags?post=2001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}