What is the difference between a shareholder and a legal representative?

Who will be investing with you?

Shareholders will typically share the profits and the losses but no legal responsibilities. An LLC can be owned by up to 50 shareholders. They are also eligible for a Temporary Resident Card from 1 to 5 years. ePCA Consulting offers the service of arranging TRC for investors, also called Dau Tu (DT) Visa.

Who will take care of the daily management and represent the company?

That would be your Director(s)/Legal representative(s). Vietnam Law will allow as many legal representatives as required with all the same power of signature. The range of powers and levels of responsibilities of each director will be decided internally but tall will be responsible for the actions of the company towards the public.

If you are shareholder of your LLC and wish to be employed a the legal representative of the company, nothing easier, investors are eligible for an exemption of work permit so that they can work normally as Director of their own company.

Any person chosen by the General Shareholders Assembly (the highest decision-making body in the company) can become Director/Legal representative opening the door Nominee Shareholders position in some cases.

The identity of all Legal representatives are published and noted on the Enterprise Registration Certificate.

TIPS: Investors have a special place in Vietnam’s heart hence the special treatment they benefit from: any investors will be granted the right to reside and the right to work once they have obtained they exemption. 

TIPS2: Check who is legal representative of a company