Are asset auction enterprises required? Can a micro-enterprise be established and operate in the form of a partnership?

Is an asset auction business established and operating in the form of a partnership?

The form of asset auction enterprise organization is specified in Clause 1, Article 23 of the 2016 Law on Asset Auctions as follows:

Asset auction enterprise

1. Asset auction enterprises are established, organized and operate in the form of private enterprises and partnerships according to the provisions of this Law and other relevant laws.

2. The name of the private auction enterprise is chosen by the business owner, the name of the partnership auction company is chosen by agreement among the members and according to the provisions of the Enterprise Law but must include the phrase “private auction enterprise” or “partnership auction company”.

3. Conditions for registering the operation of an asset auction enterprise:

a) A private auction enterprise whose owner is an auctioneer and also the Director of the enterprise; A partnership auction company has at least one partner who is an auctioneer, the General Director or Director of the auction partnership is an auctioneer;

b) Has headquarters, facilities, and necessary equipment to ensure asset auction activities.

4. Contents related to the establishment, organization, operation and termination of operations of asset auction enterprises not specified in this Law shall comply with the provisions of law on enterprises.

Thus, according to the above regulations, asset auction businesses can be established, organized and operate in the form of a partnership.

The name of the partnership auction company is chosen by the agreement members and according to the provisions of the Law on Enterprises 2020 but must include the phrase “partnership auction company”.

What documents are required to register an asset auction business in the form of a partnership?

Documents to register the operation of an asset auction enterprise in the form of a partnership are specified in Clause 1, Article 25 of the 2016 Law on Asset Auctions as follows:

Registering operations of an asset auction enterprise

1. Enterprises that meet the provisions of Article 23 of this Law send a set of dossiers requesting registration of asset auction activities to the Department of Justice where the enterprise is headquartered and pay fees according to the provisions of law. Documents include:

a) Application for operation registration;

b) Charter of the enterprise for a partnership auction company;

c) A certified copy or a copy with the original for comparison of the Auction Practice Certificate of the owner of the private auction enterprise, the Auction Practice Certificate of the partnership member, General Director or Director of the auction company. partnership auction company;

d) Documents proving the headquarters of the asset auction enterprise, commitment to ensure facilities and equipment necessary for asset auction activities.

2. Within 10 working days from the date of receipt of complete and valid documents, the Department of Justice shall issue an operation registration certificate to the asset auction enterprise; In case of refusal, the reason must be notified in writing. Enterprises that are refused an Operation Registration Certificate have the right to complain and sue according to the provisions of law.

3. Asset auction businesses operate from the date of issuance of the Operation Registration Certificate.

Thus, according to regulations, the dossier to register the operation of an asset auction enterprise in the form of a partnership includes:

(1) Application for operation registration;

(2) Charter of the enterprise;

(3) A certified copy or a copy with the original for comparison of the Auction Practice Certificate of the partnership member, General Director or Director of the partnership auction company;

(4) Documents proving the headquarters of the asset auction enterprise, commitment to ensure necessary facilities and equipment for asset auction activities.

After being granted the Certificate of Operation Registration, what content must an asset auction enterprise disclose?

Announcing the operating registration content of asset auction enterprises as prescribed in Clause 1, Article 28 of the 2016 Law on Asset Auctions as follows:

Announcing the operating registration content of the asset auction enterprise

1. Within 30 days from the date of issuance of the Operation Registration Certificate, the asset auction enterprise must publish the following main contents in the daily newspaper of the central or locality where it is registered to operate in three consecutive issues:

a) Name of the asset auction enterprise;

b) Address of the asset auction enterprise’s headquarters, branches, representative offices;

c) Number and date of issuance of the Operation Registration Certificate, place of registration of operation;

d) Full name, auction practice certificate number of the owner of the auction enterprise private; full name, auction practice certificate number of the partnership member, General Director or Director of the auction partnership company.

2. In case of changing the content of operation registration, the asset auction enterprise must announce the changed content as prescribed in Clause 1 of this Article.

Accordingly, within 30 days from the date of issuance of the Operation Registration Certificate, the asset auction enterprise must publish the following main contents in the daily newspaper of the central or locality where it is registered for operation in three consecutive issues:

(1) Name of the asset auction enterprise;

(2) Address of the asset auction enterprise’s headquarters, branches, and representative offices;

(3) Number and date of issuance of the Operation Registration Certificate, place of operation registration;

(4) Full name, auction practice certificate number of the owner of the private auction enterprise;

Full name, auction practice certificate number of the partnership member, General Director or Director of the auction partnership company.