THE 2020 LAW ON ENTERPRISES OFFICIAL IN FORCE FROM JANUARY 01, 2021

Pursuant to the 2020 Law on Enterprises issued by the Government on June 17, 2020 and coming into effect from January 01, 2021:

– Changing the interpretation of a state enterprise. A state enterprise is an enterprise of which 50 percent of the charter capital and total voting shares is held by the State as provided in Article 88 in the 2020 Law on Enterprises. (Under current regulations laid down in the 2014 Law on Enterprises, a state enterprise is an enterprise 100 percent of the charter capital is held by the State);

– Abolishing regulations regarding the notice of corporate stamp specimens before use. (Under the 2014 Law on Enterprises, before use of corporate stamps, enterprises are required to inform business registries of sample corporate stamps so that they are publicly posted on the National Corporate Registration Information Portal);

– Adding one entity prohibited from establishing and managing enterprises: An entity which is a legal commercial person prohibited from business and operation in certain particular sectors prescribed in the Penal Code.

Best regards,