Operation of Foreign-invested Joint-stock Companies

According to Government Decree 38/2003/ND-CP dated April 15, 2003, foreign-invested joint-stock companies must have at least one foreign founding shareholder. The total shares of the foreign founding shareholder(s) must be equivalent to at least 30% of the legal capital over the whole process of operation of the companies.

Shareholders will only be responsible for liabilities and other financial obligations corresponding to their capital contributions to the joint stock companies.

Shareholders in foreign-invested joint-stock companies may be entities or individuals. The minimum number of shareholders is three. There is no limit to the maximum number. The shareholders can transfer their shares.

Foreign shareholders can participate in the management of foreign-invested joint stock companies.