Advisory for crowdfunding by Miss NGUYỄN THỊ TỐ TRINH, Manager – Legal and Compliance
Currently, Vietnam law regulations have not regulated crowdfunding activities.
Capital mobilization only exists in the form of borrowing from banks, borrowing from companies or individuals, or transferring capital to companies according to the law on enterprises and to the investment law when non-locals are involved in the capital.
But the limitation of the legal system doesn’t affect the development of crowdfunding web platforms. Vietnam has existing crowdfunding activities as funding for book projects, short movie projects, and the benefit for the community just receiving gifts. It is more charity and products based.
Here are some popular crowdfunding platfoms in Vietnam: FundingVN (https://funding.vn/elementor-6748/); Betado (https://betado.com/betado-la-gi/); Comicola (https://comicola.com/aboutus)
Regarding equity-based crowdfunding, please note that the maximum number of shareholders in an LLC is 50. This creates limitations in term of the crowd size. Each “funders” will be a regular shareholder of the company contributing to its capital.
We have to distinguish two cases.
1/ when a company uses crowdfunding to fund its own projects and/or capital:
These businesses have established companies and have registered the activities such as retail activities; Information portals; Computer programming; Management consultancy activities to cover their main and secondary business activities
2/ when a company offer crowdfunding services to Clients:
We also wish to remind that these activities are not regulated as such in Vietnam, but they are not forbidden by law for both local and non-locals therefore experimental. Any operator should be acting cautiously. The business activity that will be the most familiar will be “investment advisory”. In this case, Client would find “investors” for their Clients and the latter will be back in the case 1/
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