1. Order and procedures for acquisition of a private company

Step 1: Prepare documents about changing the owner of a private business, including:

• Notice of change of owner of a private enterprise;
• Notice of change of enterprise registration contents;
• Contract for transfer of contributed capital;
• Minutes of liquidation of the transfer contract;
• A copy of the new private business owner’s personal certificate;
• Power of attorney for the person performing the procedure.

Step 2: Apply

• Receiving agency: Business Registration Office – Department of Planning and Investment of the province/city where the private enterprise is headquartered.
• Completion time: After 3-5 working days from the date of receipt of the application, the Business Registration Office will issue a Business Registration Certificate if the application is valid.

2. Obligations of the employer when acquiring an enterprise

Pursuant to Article 43 of the Labor Code 2019 specifically stipulates as follows:

“1. In case of division, separation, consolidation or merger; selling, leasing, converting the type of business; transfer of ownership and right to use assets of enterprises or cooperatives that affect the employment of many employees, the employer must develop a labor use plan according to the provisions of Article 44 of this Code.

2. The current employer and the next employer are responsible for implementing the approved labor utilization plan.
3. An employee who is terminated shall receive a job-loss allowance according to the provisions of Article 47 of this Code.”

3. Regulations on the sale of private enterprises

The sale of a private enterprise is specified in Article 192 of the Enterprise Law 2020 as follows:

“1. The owner of a private enterprise has the right to sell his or her private enterprise to another individual or organization.

2. After selling a private enterprise, the owner of the private enterprise shall still be responsible for debts and other property obligations of the private enterprise incurred in the period before the date of transfer of the enterprise, unless otherwise agreed upon by the owner of the private enterprise, the buyer and creditors of the private enterprise.
3. Owners of private enterprises and buyers of private enterprises must comply with the provisions of labor law.
4. The buyer of a private enterprise must register the change of owner of a private enterprise in accordance with the provisions of this Law.”

Above is the entire content of relevant advice on the order and procedures for acquiring a private company. In case of needing assistance, please contact KALF for answers.