Some Modifications on Business Registration from October 10th, 2018

Decree no.108/2018/ND-CP amending and supplementing a number of articles of Decree No.78/2015/ND-CP effective from October 10th, 2018 has provided many new procedures of business registration.

The new decree stipulates clarification on some contents about the procedure on business registration, of which, the highlight are the procedures that do not to require the seal stamped on the dossier on business registration and that the power of attorney for a person whom establishes the company does not need notarization, authentication at Clause 1 and 2 of Article 1 Decree No. 108/2018/ND-CP. In the past, due to the lack of clarification on the above matters, some competent authorities require to affix the seal on the dossier of business registration and request the notarization of the power of attorney. These procedures created some troublesome in practice.

Another regulation that facilitate the business transaction is that previously enterprises can only set up business locations in the province or city under central authority where their head office or branch is located. It means that if an enterprise wishes to set up another business location where the office is located, it has to go through two procedures: setting up a branch first then setting up a business location. The procedure of setting up a branch is more complex more than the establishment of business locations. With the changes in the decree 108/2018/ND-CP, enterprises are allowed to set up business locations in other provinces or centrally-run cities where their head offices or branches are opened. The scope of work is simpler and more cost-effective, the transactions of the place of business are accounted for by the parent company, thereby reducing the workload for the accountant of the company.

How ANT Lawyers Could Help Your Business?

To Set up company in Vietnam, please contact our lawyers for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

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Property Liability of Husband and Wife in the Marriage Period

According to the laws of Vietnam, marriage relation is established between a man and a woman based on marriage conditions and registration. Marriage registration means establishment of legally valid marriage relation and is protected by State, binding the wife and the husband with certain liability – joint liability.

Joint liability means a liability which shall be performed by both wife and husband and which the obligee has the right to request other to perform in its entirety. This liability could arise from property obligation in marriage period.

Property of wife and husband include two types: common property and separate property. For the transaction of common property, both wife and husband mutually agree implement, joint liability shall always exist. Moreover, the following transactions which are made by either wife or husband including but not limited to: legitimate representation in civil transaction, business relations; representation in the ownership certificate of property; the obligations performed by either wife or husband in order to meet the family’s essential demand will bind both wife and husband by a joint liability.

Despite one of the principles of Civil Code on separate property that the owner has a right to possess, use and dispose its assets and the obligations, liabilities arising out such rights shall be performed by the owner in itself, the transaction performed by either wife’s assets or husband’s assets can arise joint liability to other party such as the usage of separate property for maintenance, development of common property or making family’s primary income.

In conclusion, the provisions of joint liability on spouses’ assets not only ensure the right, benefits of wife, husband, family and third party but also is legal foundation for resolution of dispute.

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What International Laws in International Trade Vietnam is a Signing Party to?

International trade is important for each country to grow economically and influence through exchanging products and services, utilizing resources that create competitive advantage over others. In order to enable international trade, Vietnam has been a signing party to a number of international laws, international conventions, free trade agreements.

Up to present, Vietnam is a signing party to the:

UN Convention on Contracts for the International Sale of Goods 1980 (CISG);

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);

The Association of Southeast Asian Nations (ASEAN) 1967;

Vietnam is also the signing party to a number of the Free Trade Agreements:

ASEAN Free Trade Area 1992;

ASEAN Trade in Goods Agreement (ATIGA);

ASEAN Framework Agreement on Services (AFAS);

ASEAN Protocol on Enhanced Dispute Settlement Mechanism;

ASEAN-China Free Trade Area 2002;

ASEAN-India Free Trade Area 2003;

ASEAN-Japan Free Trade Area 2003;

ASEAN-Korea Free Trade Area 2005;

Vietnam – Japan economic Partnership Agreement 2008;

ASEAN-Australia-New Zealand Free Trade Agreement 2009;

Vietnam – Chile Free Trade Area 2011;

Vietnam – Korea Free Trade Area 2015;

Eurasian Economic Union 2015

ASEAN – Hong Kong free Trade Area 2017 (signed on 12/11/2017, Scheduled to be effective from 1 January 2019)

Agreements in WTO accession:

Annex 1A Multilateral agreements on trade in goods

General Agreement on Tariffs and Trade 1994

Agreement on agriculture

Agreement on the application of sanitary and phytosanitary measures

Agreement on textiles and clothing

Agreement on technical barriers to trade

Agreement on trade-related investment measures

Agreement on implementation of Article VI of the General Agreement on Tariffs and Trade 1994

Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade 1994

Agreement on pre-shipment inspection

Agreement on rules of origin

Agreement on import licensing procedures

Agreement on subsidies and countervailing measures

Agreement on safeguards

Trade Facilitation Agreement

Annex 1B General Agreement on Trade in Services

Annex 1C Agreement on trade-related aspects of intellectual property rights

Until Sep 2018, Vietnam has been accelerating preparations for meeting commitments in EU-Vietnam Free Trade Agreement (EVFTA). It has been expected the EVFTA to be passed in the year of 2019, promoting Vietnam’s sustainable development through removing 99% of tariffs on goods traded between the two economies, expanding Vietnam’s textile, apparel export to the EU market. In return, the EVFTA will open Vietnamese market for EU companies and strengthen the protection of its investment into Vietnam.

ANT Lawyers law firm is a member of legal secretary of EuroCham in Hanoi, Vietnam, and has been a contribution to the legal review that support the investment into Vietnam. ANT Lawyers will be sending Mr Tuan Nguyen, the Managing Partner to take part in the EuroCham delegation visit in Brussels Mission in October 2018, with the main goal is to promote the fast conclusion of the EU-Vietnam Free Trade Agreement process, raise awareness as to the potential of Vietnam as a strategic partner for Europe, and deliver the views of the European business community in the country.

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What Are Rights and Benefits of the Employee Suffering the Occupational Accident?

Accidents can happen at any time at work. Whether a workplace accident is the result of employee carelessness or employer negligence, employers must take responsibility for accidents to employee.

Vietnam Labor Code defines occupational accident is an accident that causes injury to any part and function of the body or death to employee occurring during the working process associated with the implementation of work and labor tasks (according to Article 142 of Labour Code).

The employee has following rights when they suffer accidents:

1. The employee is paid all the payment of the co-payment costs and the costs not included under the list paid by the health insurance for the employee participating in health insurance and making full payment of all medical expenses from the first aid, emergency to the stable treatment for the employees not participating in health insurance.

2. The employee is entitled to full payment of salary under the labor contract to the employee suffering the occupational accident and having to take leave during treatment.

3. The employee participating in compulsory social insurance is entitled to enjoy the regime of occupational accident in accordance with the Law on Social Insurance.

The conditional to enjoy the regime of occupational accident: were injured in workplace or during working hours; outside the place of work or during working hours when performing work at the duty of the employer; on the road from home to work place and vice versa.

4. The employee is entitled to the enjoy labor accident allowance as:

. The employee with occupational accidents reduces working capacity from 5% to 30% are paid once.

The employee with occupational accidents reduces working capacity 5% receive an allowance of an amount equal to 5 month’ salary under labor contract and then every 1% increase has an addition of 0.5 month’ salary.

.The employee with occupational accidents reduces working capacity 31% or more receive an allowance at rate: reduce working capacity 30% shall receive 30% month’ salary under labor contract and then every 1% increase has an addition of 2% month’ salary

This allowance is paid every month.

. The death of the employee’s relative from the occupational accidents receive at least 36 months’ salary under labor contract.

5. The employee with occupational accidents not due to the fault of employee and reduce working capacity from 5% or more shall be compensated by the employer at the following rate:

. At least equal to 1.5 month’ salary under the labor contract if the employee is reduced from 5.0% to 10% of his working capacity and then every 1.0% increase, an addition of 0.4 months of salary under the labor contract if reduced working capacity from 11% to 80%;

. At least 30 months’ salary under labor contract for the employee reduced his working capacity from 81% or more or for the death of the employee’s relative from the occupational accidents.

6.Where due to the fault of the employee, he/she also receives an allowance of an amount at least equal to 40% of the rate prescribed when fault not belong to the employee.

7. In case the employee reduces his/her working capacity in temporary, the employee receives100%-month salary under labor contract the first aid, emergency to the stable treatment or until a permanent injury certificate is issued.

8. In case the employee reduces his working capacity in permanent, beside allowance of accidents, the employee reduces his/her working capacity from 81% or more receive 100% month’ salary under labor contract every month.

9. In the case of death of a worker who has paid social insurance for 15 years, relatives will receive a funeral allowance and dependents will be entitled to a minimum of 50% of the basic salary for each person.

10. In case of the employee’s death and had participated in compulsory social insurance for less than 15 years, the burial attendants receive allowance at least 10 months’ salary under labor contract at once.

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