Business activities in the form of enterprises sans registration can be penalized up to 100 million VND.

From 01 January 2022, doing business activities in the form of enterprises sans registration can be penalized up to 100 million VND. (Decree 122/2021/ND-CP)

Specifically, a penalty ranging from VND 50,000,000 to VND 100,000,000 shall be imposed for one of the following acts:

 - Doing business in the form of an enterprise sans registration.

- Continuing to do business when the Certificate of Business Registration has been revoked or is requested by a competent state agency to suspend business, cease operations or terminate business.
 (Previously, according to Decree 50/2016/ND-CP, a penalty of between VND 20,000,000 and VND 30,000,000 was imposed for these two acts).

 Remedial measure: be forced to register to establish an enterprise.

* In addition, regulations on sanctioning for other violations on business establishment are as follows:

- A penalty ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for failing to ensure the number of members and shareholders as prescribed by the laws.

(Previously, a penalty ranging from VND 2,000,000 to VND 5,000,000 was imposed for failing to transform the type of enterprise when the company no longer has the minimum number of members and shareholders as prescribed within a period of 6 consecutive months).

- A penalty ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for the following acts:

+ Contributing capital to establish an enterprise or registering for capital contribution or buying contributed share capital at other economic entities that are not in the appropriate form as prescribed by the laws.

+ Not having the right to contribute capital, buy shares or contributed capital, but still do it.

- A penalty ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for one of the following acts: 

Failure to carry out the procedures at the registration office for the capital adjustment or the change of founding members or shareholders when the time limit for capital contribution has expired and the time for capital adjustment has expired because the founding members or shareholders do not fully contribute capital and there are no founding members or shareholders making the commitment to contribute capital. 

- Increase the penalty from 30,000,000 VND to 50,000,000 VND for intentionally valuing the assets as capital contribution with incorrect value. 
(Previously, the act of intentionally valuing assets as capital contribution not match with their actual value was penalized from VND 20,000,000 to VND 30,000,000).

 Additional remedial measures:

- For acts of not having the right to contribute capital, purchase shares or capital contributions but still do: be forced to change the capital contributors.

- For the act of failing to carry out the procedures at the registration office for the capital adjustment or the change of founding members or shareholders when the time limit for capital contribution has expired and the time for capital adjustment has expired because the founding members or shareholders do not fully contribute capital and there are no founding members or shareholders making the commitment to contribute capital: be forced to carry out the procedures for capital adjustment or change of founding members or shareholders.
 

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