Conversion of shareholding companies into limited liability companies

Hi DMS Attorneys in Vietnam! Could you advise me if a shareholding company can be converted into a limited liability company in Vietnam ?

Hi!

Conversion of shareholding companies into one member limited liability companies:

A shareholding company may be converted into a one member limited liability company by the following methods:

One shareholder receives an assignment of the entire corresponding shares or capital contribution of all remaining shareholders;

One organization or individual not being a shareholder receives an assignment of the entire shares of all shareholders of the company;

The company still has only one shareholder after expiry of the time-limit in which the

minimum number of shareholders of a shareholding company is required in accordance with Article 110 of this Law (Clause 1 Article 197 Law on Enterprises No. 68/2014/QH13 dated 11/26/2014).

Conversion of shareholding companies into limited liability companies with two or more members:

 A shareholding company may be converted into a limited liability company by the following methods:

It shall be converted into a limited liability company without raising additional capital from or assigning shares to other organizations or individuals;

 It shall be converted into a limited liability company at the same time as it raises contributed capital from other organizations or individuals;

It shall be converted into a limited liability company at the same time as it assigns all or part of shares to other capital contributing organizations or individuals;

It shall be converted into a limited liability company by way of combination of the methods stipulated in Points (a), (b) and (c) of this Clause (Clause 1 Article 198 Law on Enterprises No. 68/2014/QH13 dated 11/26/2014).

Related topics:

Conversion of limited liability companies into shareholding companies

Services for conversion from an LLC to a shareholding company in Vietnam

Services for changing the type of a company in Da Nang

Services for conversion from a multi-member LLC to a single member LLC in Vietnam

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