Question:
I am preparing to establish a technology startup in Da Nang in the form of a joint-stock company, with 4 founding shareholders and a chartered capital of 1 billion VND. One shareholder wishes to contribute capital using intellectual property (a developed software). May I ask if contributing capital with non-cash assets is permitted?
Answer:
According to the provisions of Article 34 of the 2020 Enterprise Law:
“1. Assets for capital contribution include Vietnamese Dong, freely convertible foreign currency, gold, land use rights, intellectual property rights, technology, technical know-how, and other assets that can be valued in Vietnamese Dong
2.Only individuals or organizations that are the lawful owners or have the lawful right to use the assets stipulated in Clause 1 of this Article may use such assets for capital contribution as prescribed by law.”
Therefore, the developed software is permitted to be used for capital contribution to the joint-stock company, provided that the asset can be valued in Vietnamese Dong and is agreed upon by the founding shareholders.
Consulting reference: Business Law Services
