Two changes that come into effect from 1 July 2015 as part of the new Enterprise Law, and which are important from a practical perspective for companies in Vietnam are:
1. Companies can now have more than one Legal Representative.
This provides more flexibility for those Legal Representatives that travel regularly, but this does come with a few other stipulations. Firstly, each company must have at least one Legal Representative that resides in Vietnam. Further, if all Legal Representatives are travelling outside of Vietnam then they must appoint another person to exercise the Legal Representatives obligations. If all Legal Representatives are outside of Vietnam for more than 30 days without appointing another person to exercise their powers, then the company members or directors must appoint a new Legal Representative.
2. Companies in Vietnam are now permitted to have more than one stamp
Companies can have more than one stamp, and can also (within guidelines), design their own stamp. We have seen clients use their logos in the middle of their stamp under the new rules, and the flexibility of multiple stamps for large organisations will make logistics and group structures much easier (i.e. removing the need for some independent branch registrations).