Procedures to increase charter capital of a joint stock company

During the operation process, a Joint Stock Company can adjust to increase its charter capital, so do you know how to carry out procedures to increase the charter capital of a Joint Stock Company? ANT Legal will tell you how to increase the charter capital of your Joint Stock Company in 2024!

1. What is the charter capital of a joint stock company?

The charter capital of a joint stock company is the total par value of all types of shares sold.
The charter capital of a joint stock company when registering to establish a business is the total par value of all types of shares registered to buy and recorded in the company charter.
(Clause 1, Article 112 of the Law on Enterprises 2020)

2. Cases of increasing the charter capital of a Joint Stock Company

– Offering shares is the company increasing the number of shares and types of shares authorized to be offered to increase charter capital.
– Offering shares can be done in the following forms:
+ Offering shares to existing shareholders;
+ Offering selling individual shares;
+ Offering shares to the public.
– Offering shares to the public, offering shares of public companies and other organizations in accordance with the law on securities.
– The company registers changes in charter capital within 10 days from the date of completion of the share sale part.
(Article 123 of the Law on Enterprises 2020)

3. Dossier to increase charter capital of a joint stock company

Dossier to change charter capital of a joint stock company includes the following documents:
– Notice of change in business registration content signed by the legal representative of the enterprise;
– Resolution and decision of the General Meeting of Shareholders for joint stock companies on changing charter capital regulations;
– Document of the Investment Registration Authority approving capital contribution, stock purchase, capital contribution purchase by foreign investors, economic organizations with foreign investment capital in cases where procedures for capital contribution, share purchase, capital contribution purchase must be carried out according to the provisions of the Investment Law.
*In case the General Meeting of Shareholders approves the offering of shares to increase charter capital, and at the same time assigns the Board of Directors to carry out procedures for registering an increase in charter capital after the end of each share sale.
Accompanying the above Notice, the application for registration of charter capital increase must contain the following documents:
– Resolution and copy of the minutes of the General Meeting of Shareholders on the offering of shares to increase charter capital, clearly stating the number of shares offered and assigning the Board of Directors to carry out procedures for registering an increase in charter capital after the end of each share sale;
– Resolutions, decisions and copies of meeting minutes of the Board of Directors of joint stock companies on registration to increase the company’s charter capital after the end of each share sale.
(Clause 1, Clause 3, Article 51 of Decree 01/2021/ND-CP)

4. Procedures for increasing charter capital of joint stock companies

Step 1: Submit application

In case a joint stock company registers to change its charter capital, the company sends the registration dossier to change the business registration content mentioned above to the Business Registration Office where the company’s headquarters is located. Or you can submit your application online at: https://dangkyquamang.dkkd.gov.vn.

Step 2: Process documents and return results

After receiving the business registration dossier, the Business Registration Office issues a Receipt, checks the validity of the dossier and issues a Business Registration Certificate to the enterprise.
(Clause 1, Clause 5, Article 51 of Decree 01/2021/ND-CP)