I want to ask: What is the minimum charter capital of a one-member limited liability company?

What is the minimum charter capital of a one-member LLC?

In Article 75 of the Law on Enterprises 2020, there are regulations on capital contribution to establish a company as follows:

Contributing capital to establish a company
1. The charter capital of a one-member limited liability company when registering to establish a business is the total value of assets committed to contribute by the company owner and recorded in the company’s charter.
2. The company owner must contribute capital to the company in full and with the right type of assets as committed when registering to establish a business within 90 days from the date of issuance of the Business Registration Certificate, excluding the time of transporting and importing assets to contribute capital, and carrying out administrative procedures to transfer asset ownership. During this period, the company owner has rights and obligations corresponding to the committed capital contribution.
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Thus, the minimum charter capital of a one-member limited liability company will depend on each company and will be committed by the company owner and recorded in the company charter.
What is the minimum charter capital of a single-member limited liability company?

In what cases can a single-member limited liability company reduce its charter capital?

In Article 87 of the Law on Enterprises 2020, there are regulations on increasing and decreasing charter capital as follows:

Increase and decrease in charter capital
1. A single-member limited liability company increases its charter capital through the company owner contributing additional capital or mobilizing additional capital contributions from others. The company owner decides on the form and amount of charter capital increase.
2. In case of increasing charter capital by mobilizing additional capital contributions from others, the company must organize management in the form of a limited liability company with two or more members or a joint stock company. The organization and management of the company is carried out as follows:
a) In case the management organization is in the form of a limited liability company with two or more members, the company must notify the change in business registration content within 10 days from the date of completion of the change in charter capital;
b) In case of conversion into a joint stock company, the company shall comply with the provisions of Article 202 of the Law this.
3. A single-member limited liability company reduces its charter capital in the following cases:
a) Refund part of the capital contribution to the company owner if the company has operated continuously for 02 years or more from the date of enterprise registration and ensures full payment of debts and other property obligations after returning the capital contribution to the company owner;
b) charter capital The charter capital is not paid in full and on time by the company owner according to the provisions of Article 75 of this Law.
Thus, a one-member limited liability company is entitled to reduce its charter capital in the following cases:

– Refund a portion of capital contribution to the company owner if the company has operated continuously for 02 years or more from the date of business registration and ensures full payment of all fees. debts and other property obligations after returning the capital contribution to the company owner;

– The charter capital is not paid in full and on time by the company owner. Specifically as follows:

The company owner must contribute capital to the company with sufficient and correct types of assets as committed when registering to establish a business within 90 days from the date of issuance of the Business Registration Certificate, excluding the time of transporting and importing assets to contribute capital, and carrying out administrative procedures to transfer ownership of assets.

– In case of failure to fully contribute charter capital within the time limit above, the company owner must register to change the charter capital equal to the value of the contributed capital within 30 days from the last day to fully contribute the charter capital.

Who has the authority to decide to increase the charter capital of a 1-member limited liability company?

In Article 76 of the Law on Enterprises 2020, there are regulations on the rights of company owners as follows:

Rights of company owners
1. The company owner who is an organization has the following rights:
a) Decide on the content of the company’s Charter, amend and supplement the company’s Charter;
b) Decide on the development strategy and annual business plan of the company;
c) Decide on the organizational structure of the company’s management, appoint, dismiss, and dismiss managers and controllers of the company;
d) Decide on investment and development projects;
dd) Decide on market, marketing and technology development solutions;
e) Approve loan contracts, lending, selling assets and other contracts prescribed by the company’s Charter with a value of 50% or more of the total asset value recorded in the company’s most recent financial report or a smaller ratio or value specified in the company’s Charter;
g) Approve the company’s financial statements;
h) Decide to increase the company’s charter capital; Transfer part or all of the company’s charter capital to other organizations or individuals; decision to issue bonds;
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Thus, the company owner is the person with the authority to decide to increase the charter capital of a one-member limited liability company.