From January 1, 2022, the acts of fictive declaration of charter capital can be penalized up to 100 million VND

According to Decree 122/2021/ND-CP on administrative sanctions in the field of planning and investment, from January 1, 2022, the acts of fictive declaration of charter capital can be penalized up to 100 million VND.

Specifically, Article 47 of Decree 122/2021/ND-CP stipulates that penalties for violations on declaration of charter capital are as follows:

- A penalty ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for making fictive declaration of charter capital below VND 10 billion 

- A penalty ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for making fictive declaration of charter capital with an amount between VND 10 billion and under VND 20 billion.

- A penalty ranging from VND 40,000,000 to VND 60,000,000 shall be imposed for making fictive declaration of charter capital with an amount between VND 20 billion and under VND 50 billion.

- A penalty ranging from VND 60,000,000 to VND 80,000,000 shall be imposed for making fictive declaration of charter capital with an amount between VND 50 billion and under VND 100 billion.

- A penalty ranging from VND 80,000,000 to VND 100,000,000 shall be imposed for making fictive declaration of charter capital of VND 100 billion or more.

Thus, from January 1, 2022, the act of fictitious of the charter capital will be penalized up to VND 100 million.

Remedies for violations on declaration of charter capital: be forced registration to adjust the charter capital equal to the actual contributed capital.

Previously, in Clause 3, Article 28 of Decree No. 50/2016/ND-CP, a penalty ranging from VND 10,000,000 to VND 20,000,000 was imposed for failing to register the changes with the business registration agency when failing to contribute in full the charter capital as registered.

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