How to register to change owner of a private business?

Wed, 25 Nov 2020 17:52:00  |  Print  |  Email   Share:

In case the company’s owner is an individual dies, the heir by testament or by law is the owner or a member of the company. The company must organize operations according to the respective type of enterprise and register to change the business registration content.

Through the receiving and responding system to recommendations of businesses,the  Le Duc private company (in Quang Binh Province) asked: In case the owner of a private ebusiness dies, how will the business operate, will it be terminated moving? Have the signed contracts terminate?

If an heir registers to change the owner of a private business, can the changed private enterprise continue to operate under the previous enterprise's certificates (for example, Certificate of Eligibility production of gold jewelry, fine arts; Certificate of eligibility for foreign currency payment agent, ...)? Is the private enterprise allowed to continue implementing the previously signed contracts?

Regarding this issue, The Ministry of Planning and Investment has the following opinions:

For the operation of a private company after the death of the private company’s owner, Clause 3, Article 77 of the Law on Enterprises 2014 provides: “If the company’s owner being an individual dies, his/her inheritor according to the will or law shall be the owner or member of the company. The company shall be converted correspondingly and register changes to business registration contents within 10 days from the completion of the inheritance process.

If the company’s owner being an individual dies without an inheritor or the inheritor renounces the inheritance or has the right to inherit deprived, the owner’s stake shall be settled in accordance with regulations of law on civil affairs.

For the operation of a private company after the death of the private business’s owner, Clause 3, Article 77 of the Law on Enterprises 2014 provides

Regarding certificates issued to an enterprise in case an heir registers to change owner of a private enterprise, in Article 47 of Decree No. 78/2015 / ND-CP of the Government regulating the registration of change of ownern case of sale or gift to the enterprise, the owner dies or is missing.

Regarding certificates issued to an enterprise in case an heir registers to change owner of a private enterprise, in Article 47 of Decree No. 78/2015 / ND-CP of the Government regulating the registration of change of owner: “Companies are entitled to conduct conditional business activities from the moment they fully meet the conditions prescribed by law and must ensure that those conditions are met throughout the course of its operations. State administration of the sectors and trades subject to conditional business investment and inspection of the enterprise's compliance with business conditions falls within the authority of specialized agencies in accordance with specialized laws ”.

Therefore, regarding the contents related to the conditional business lines and business conditions, the enterprise is requested to contact specialized agencies for resolution in accordance with specialized laws.

By: Online Newspaper of the Government / Translator: HaiYen-Bizic

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