Rights and obligations of enterprises

What is a business? How are the rights and obligations of businesses expressed? This article shares in detail the legal regulations surrounding the topic of Enterprise according to current legal regulations. 

CSPL: Clause 10 Articles 4, 7, 8, 16 Law on Enterprises 2020

1. What is an enterprise?

Pursuant to the provisions of Clause 10, Article 4 of the Law on Enterprises 2020:

Enterprise is an organization with its own name, assets, and transaction office, established or registered under the provisions of law for business purposes.

2. Rights of businesses

– Freedom to conduct business in industries and occupations not prohibited by law.

– Business autonomy and choice of form of business organization; proactively choose industries, occupations, locations, and forms of business; proactively adjust the scale and business lines.

– Choose forms and methods of mobilizing, allocating and using capital.

– Freely search for markets, customers and sign contracts.

– Export and import business.

– Recruit, hire and use labor according to regulations provisions of labor law.

– Proactively apply science and technology to improve business efficiency and competitiveness; intellectual property rights are protected according to the provisions of the law on intellectual property.

– Possession, use, and disposition of enterprise assets.

– Refuse requests from agencies, organizations, and individuals to provide resources not in accordance with the provisions of law.

– Complaints and participate in proceedings according to the provisions of law. law.

– Other rights as prescribed by law.

3. Obligations of the enterprise

– Satisfy business investment conditions when conducting business in conditional business investment sectors; Sectors and occupations have conditional market access for foreign investors according to the provisions of law and ensure that such conditions are maintained throughout the course of business operations.

– Fully and promptly fulfill obligations regarding business registration, registration of changes in business registration content, publicizing information on establishment and operation of enterprises, reporting and other obligations according to the provisions of this Law.

– Responsible for the truthfulness and accuracy of information declared in business registration documents and reports; In case the declared or reported information is discovered to be inaccurate or incomplete, such information must be promptly amended and supplemented.

– Organize accounting work, pay taxes and perform other financial obligations according to the provisions of law. 

– Ensure the legal and legitimate rights and interests of employees according to the provisions of law; Do not discriminate or insult the honor and dignity of employees in the enterprise; Do not abuse labor, force labor or use underage labor illegally; Support and create favorable conditions for workers to participate in training to improve their qualifications and vocational skills; Implement policies and regimes of social insurance, unemployment insurance, health insurance and other insurance for employees according to the provisions of law.

– Other obligations according to the provisions of law.

4. Prohibited acts for businesses

– Issuing or refusing to issue Business Registration Certificates, requiring business founders to submit other documents contrary to the provisions of this Law; causing delays, inconveniences, obstructions, and harassment to business founders and business operations of the enterprise.

– Preventing owners, members, and shareholders of the enterprise from exercising their rights and obligations under the provisions of this Law and the company’s Charter.

– Doing business in the form of an enterprise without registration or continuing to do business after the Certificate of Business or Enterprise Registration has been revoked is temporarily suspending business operations.

– Untruthfully and inaccurately declaring the content of the business registration dossier and the content of the registration dossier to change the business registration content.

– Declaring false charter capital, not contributing the full amount of charter capital as registered; intentionally valuing assets contributed as capital at an incorrect value.

– Doing business in industries and professions that are prohibited from business investment; Business lines and professions that do not have market access for foreign investors; doing business in conditional business investment lines when not meeting business conditions according to the provisions of law or not ensuring the maintenance of business investment conditions during the operation process.

– Fraud, money laundering, terrorist financing.