NA committee reviews draft Law on Enterprises

NA committee reviews draft Law on Enterprises

(15-09-2005)

HA NOI — Reviewing the draft Law on Enterprises, the National Assembly's Committee of Economic Affairs and Budget has concluded that requirements for a minimum legal capital and the management ability of enterprise owners were not obligatory conditions for granting business licences.

The NA committee's conclusion follows an earlier proposal by NA deputies requiring businesses to have a minimum legal capital and professional management ability for granting business licenses.

According to the law compiling committee, legal capital was a minimum amount enterprises required to start businesses. However, it was difficult to enforce this condition for scientific and practical reasons. It fails to protect the benefits of creditors and relevant agencies or prevent those who are ineligible from establishing enterprises, the committee concluded.

Moreover, the requirement results in confusing businesses or leads to illegal practices, and prevents creative and honest entrepreneurs, who lack minimum capital, from establishing businesses.

Though these shortcomings went against making it an obligatory condition, the legal capital requirement have to be met by specific enterprises in currency-related businesses, and dealing in stock, credit and financial markets.

Regarding the management ability of enterprises, the committee said businesses, who invest to establish enterprises, obviously had the authority to manage their companies.

Businesses hire managers and staff only after checking their abilities and qualifications. As for business owners, it should be obligatory for them to have minimum qualifications and experience certified by authorised State agencies in certain specific occupations, the committee added. — VNS