Establishment of Single-member limited liability company by the provincial people's committee

* The order of execution

- PPCs make applications for the establishment of single-member limited liability company as prescribed and consulted by the Ministry of Planning and Investment, Ministry of Finance, Ministry of Labor, War Invalids, & Social Welfare, Ministry of Home Affairs, managing ministries.

- Within 10 working days upon receipt of applications for the establishment of single-member limited liability company, the relevant agencies send a response to the content within the functions and responsibility to the provincial People's Committee.

- Within 10 working days from upon the opinions of the relevant agencies, the provincial People's Committee makes evaluation report, explaining the opinions of the relevant authorities, completing application for the establishment of single-member limited liability company to the Prime Minister for consideration and approval.

- In case of approval by the Prime Minister, Chairmen of the provincial People's Committee decides to establish single-member limited liability company within 30 working days upon the approval.

* How to perform:

- Through the postal system;

- Direct at the offices of the State administrative agencies.

* Application components:

- A report proposing the establishment of single-member limited liability company.

- A project for establishment of single-member limited liability company.

- The Draft Charter of Single-member limited liability company.

* Number of records: 05 original sets

* Settlement deadline:

- A maximum of 20 working days (since the relevant agencies receive the application) for PPCs to implement evaluation procedure and submit to the Prime Minister for consideration and approval.

- Within maximum of 30 working days (after the Prime Minister approves the Project), Chairmen of the provincial People's Committee decides to establish Single-member limited liability company.

* Executing agencies: PPCs.

* Subjects of administrative procedures: PPCs

* Results of administrative procedures:

- Approval (or disapproval) of the Prime Minister for Project.

- In case of approval by the Prime Minister, Chairmen of the provincial People's Committee decides to establish the company.

* Fee: N/A

* Name of the application form and declaration form:

To implement under the provisions of Decree No. 172/2013/ND-CP, the establishment project and operation charter of single-member limited liability company need to ensure the main contents, namely:

- A project for establishment of single-member limited liability company must contain the following major contents:

+ The legal basis, the need for establishment of the company;

+ The name, organization and management model of the company and the duration of operation;

+ Location of the company' headquarters, the construction site and production facilities, business and land-used area; branches, representative offices of the company;

+ The task assigned by the State; business lines; product portfolio, the services of company;

+ Review economic - social impacts and appropriateness of the company establishment with plan, development strategy, economic sectors and regions;

+ Market situation, demand and market outlook for each product and service; expected technology applied to the production and business; production, business and investment plans within 5 years after the establishment;

+ The estimation of total investment; the charter capital; resources and form of mobilizing the remaining capital in addition to the initial investment by the State; method of returning the capital raised; demand and measures to raise the working capital for company;

+ The availability of labor resources, raw materials, materials, energy, technology and other necessary conditions to operate after establishment.

- The draft charter of the company includes the following major contents:

+ The name, address, company’ headquarters; legal forms, legal status of the company; branches, representative offices (if any);

+ Target for activities; State-assigned tasks and business;

+ Charter capital, measures to adjust the charter capital;

+ The legal representative of the company;

+ The rights and obligations of the owners of the company;

+ The rights and obligations of the company;

+ Structure of company management;

+ The rights and obligations of the President and members of the Member Board or Chairmen of the company, Supervisors, General Manager and other management positions of the company;

+ Financial mechanism, the principle of using the profits and handling losses of the company; basis and method of determining the remuneration, salaries and bonuses for managers and Supervisors;

+ The cases of reorganization, dissolution or change in ownership and asset liquidation procedures of the company;

+ The modalities through decisions of the company; principles of the internal dispute resolution;

+ Procedures for amending and supplementing the company charter;

+ Other regulations by agencies or organizations assigned to perform the rights and obligations of the owner of the company but no contrary to the provisions of law.

* Requirements, conditions of procedures:

- The sectors, areas and locations are considered toward the establishment of single-member limited liability company, including:

+ Industries, sectors or locations of direct service for defense and security as stipulated by the State;

+ National electricity system transmission; multipurpose hydropower plants, nuclear power plants particularly important for economy – society association with national defense and security;

+ Management and exploitation of the infrastructure system of national railways, urban rail; airports; national general ports, international gate;

+ Flight Executive Management; national rail transport operation, urban rail;

+ Ensuring maritime;

+ Providing public postal services;

+ Publishing (not including printing and publishing publications);

+ Printing money, minting money;

+ Management and exploitation of irrigation systems, inter-provincial and inter-district irrigation and sea walls;

+ Island logistics;

+ Management and maintenance of the dykes, flood diversion and prevention of natural disasters;

+ Planting and protecting the watershed forests, protecting forests and special-use forest;

+ The sectors, areas and locations for stability and strategy of economic-social development of the country in each period or other sectors, areas and locations under a decision of the Prime Minister.

- Ensuring sufficient charter capital as prescribed:

+ The minimum of charter capital of single-member limited liability company is 100 billion dong.

+ In case of business lines that require legal capital, in addition to the above conditions, the charter capital of single-member limited liability company may not be lower than the legal capital prescribed for these business lines.

+ For single-member limited liability company operating in the special lines and locations or manufacture and supplying public products and services, the charter capital may be lower than the level prescribed if there is the approval of the Prime Minister.

- Have a valid application prescribed and approved by the Prime Minister.

- The establishment of single-member limited liability company must be in line with plan, economic sectors and regions and development strategy.

* The legal basis of the administrative procedure:

Decree No. 172/2013/ND-CP dated in November 13, 2013 of the State on the establishment, reorganization and dissolution of a State-owned single-member limited liability company and subsidiaries of a State single-member limited liability company.

 

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