PROCEDURES ON CAPITAL INCREASE OF MULTIPLE-MEMBER LIMITED LIABILITY COMPANY

Increasing capital is an important way to help expand the scale of multiple-member limited liability company, to satisfy its financial needs and develop business activities. This is an activity that requires caution and compliance with legal regulations. Correct and full completion of capital increase of multiple-member limited liability company helps increase capital effectively and transparently, creating a foundation for a smooth business operation process.

How many form can the capital increase of multiple-member limited liability company be implemented?

The current Enterprise Law stipulates two forms of capital increase of multiple-member limited liability company:

– Increase in the current members’ capital contribution.

It should be noted that, in case of increase of capital contribution of company members, the increase will be distributed among the members in proportion to their holdings in the company. However, members have the right to transfer their capital contribution rights to others.

In case a member does not contribute or fully contribute that member’s share of additional capital as distributed, the remainder shall be divided among other members in proportion to their holdings in the company unless otherwise agreed by the members.

– Receipt of capital contribution from new members.

How is the capital increase of multiple-member limited liability company implemented?

Organizing a meeting of the company’s Board of Members to decide on capital increase

Decision to increase or decrease charter capital, when and how to mobilize additional capital is under the authority of the Board of Members. At the same time, the meeting documents and approval of the Board of Members are also in the list of documents that need to be submitted when carrying out procedures to increase the charter capital of a multiple-member limited liability company at the competent state agency.

The meeting of the Board of Members is convened and chaired by the Chairman of the Board of Members, complying with the conditions and formalities prescribed by law.

>> CAPITAL DECREASE OF MULTIPLE-MEMBER LIMITED LIABILITY COMPANY https://linconlaw.vn/capital-decrease-of-multiple-member-limited-liability-company/

>> REGISTRATION FOR NEW MEMBERS OF MULTIPLE-MEMBER LLC https://linconlaw.vn/registration-for-new-members-of-multiple-member-llc/

Notifying to the competent state agency on the capital increase of multiple-member limited liability company

The notification must be made in writing by the company to the Business Registration Authority. The implementation period is 10 days from the date the charter capital increase has been paid.

Dossier of notification on the capital increase of multiple-member limited liability company include:

– Notification of charter capital increase;

– Resolutions, decisions and meeting minutes of the Board of Members on capital increase of multiple-member limited liability company;

– The latest financial statement.

The business registration authority shall update information about the increase or decrease in charter capital within 03 working days from the day on which the notification is received.