Posted 18.12. 2020 by Cekindo / Last update on 29.12. 2020
Mergers in Vietnam are common and they happen for a lot of strategic business reasons. The most important reasons for any mergers in Vietnam are economic at their fundamental.
Companies often opt for mergers as the most convenient and powerful approach to strengthen their market position.
Below we will highlight several reasons mergers in Vietnam, along with its benefits:
Under the 2005 Vietnamese Law on Enterprise, only the identical type of companies can conduct a merger in Vietnam. However, this restriction was lifted with the issuance of the 2014 and 2020 Vietnamese Law on Enterprise – a merger in Vietnam is no longer limited to the same type of businesses.
There are several requirements that both merging and merged companies must fulfill as per the 2020 Vietnamese Law on Enterprise:
This section will give you a description of the process of the merger in Vietnam:
1. Parties involved in the merger in Vietnam shall prepare a draft charter of the merging company and a merger contract. The details of the merger contract include the following:
2. The related companies’ shareholders, owners, or members will have to approve the merging company’s charter and the merger contract.
3. Once the contract and charter are approved, the related companies must then send the merger contract to all creditors. They should also notify their employees within 15 days of approval.
4. The merged company shall then terminate its tax identification number by submitting the following documents:
5. The merging company shall then apply for the business registration certificate. The application requirements depend on whether there are any changes to the business registration contents.
Cekindo’s merger specialists support business owners, shareholders, investors, and management teams with insightful advice and effective solutions. Our unique breadth and depth of experience allow us to provide professional and no-nonsense assistance to cut through complicated transactions for business mergers in Vietnam.
Our hands-on and bespoke approach, a specialist team of experienced senior advisers, and a dedicated global merger network differentiate us. When you partner with Cekindo, your business and related parties will be genuinely involved in our merger delivery.
So what’s your plan of merger in Vietnam? Let us know by filling out the form below.