In order to develop and focus on promoting the increasingly strong business system for development, many Associations and Associations have been established. In order to establish an association, the founder must comply with current legal regulations.

1. Concept of association

An association is considered an organization formed by many associations, many domestic and foreign organizations or many countries to pursue a common goal as well as to protect mutual interests. The members of the association have linked together for the same common interests and this is to create common strength in their activities.

2. Regulations establish an association

Today, our country has thousands of businesses operating. Originating from the need to help and protect each other’s interests. As well as developing activities to promote investment and trade activities in Vietnam. Associations are permitted by our country’s law to be established.

2.1. Principles of association establishment

According to the current laws of our country, the principles for the organization and operation of associations must comply with the following regulations:

– Voluntary, self-management;

– Public, democratic, transparent, equal

– Non-profit activities

– Comply with the Constitution, association charter, and legal regulations

2.2. Scope of association activities

– Associations have the following territorial scope:

+ Scope of operation nationwide, inter-provincial;

+ Scope of operation within provinces and cities (collectively referred to as provinces);

+ Scope of operation within districts, towns, and cities (collectively referred to as districts);

+ Scope of operation within communes, wards, and towns (collectively referred to as communes).

3. Roles and functions of the association

According to current law, the Association of Enterprises is considered a social-professional organization of enterprises with legal status and a separate seal or account at a Vietnamese bank. The Association also has its own roles and functions, but these must also be based on Vietnamese law and in accordance with the Association’s charter approved by the state agency.

3.1. Role of the association

When the economy was not yet developed, integration was not considered important for our country. But in recent years, when our country has been increasingly expanding, developing and expanding its relations with countries around the world, the trend of participating in international associations has also increased to raise its position. It can be seen that when joining international associations, it must sign important commitments such as not deeply intervening in the business activities of enterprises, then the role of the association is increasingly enhanced.

It can be seen that in the historical period, we will see that the feudal records of our people have had many different forms of trade, these forms all give them convenience for the exchange process as well as development. It can be seen that in the previous periods, we have had awareness of the importance of trade based on the form of organization of groups and wards. Inheriting these values ​​to the present time, it can be seen that the division of activities of many Vietnamese business associations into three main groups is the representation of interests, economic development, business support services and many other business-related activities.

Regarding the issue of benefits, it is considered the main function of most associations in the enterprise. For business support services, including direct services related to finance that enterprises may need, it is considered as training a team of experienced specialists, flexible in handling, to be able to expand in business relations, collect and provide information to business associations, thereby attracting many talented people to join the association.

Associations are organizations representing the interests of enterprises operating in the business sector. Collecting statistics on the production, consumption, and export levels of the industry to be able to distribute to enterprises that are members. Organizing forums to discuss business activities as well as lobbying with ministries and legislative bodies on issues of interest to them.

Associations operating in Vietnam are considered as subjects to which regulations on anti-competitive behavior and economic concentration that cause impacts and are likely to limit competition in the Vietnamese market; competition litigation; unfair competition behavior; handling violations of competition law; state management of competition.

However, in addition to the achieved value, there are still situations where businesses do not really realize the importance of joining an association. Along with that, many associations have been established, bringing many positive effects to the economic situation of the market. Therefore, it can be seen that each member of the association improves in their functional role for the association, contributing to the development of the economy.

3.2. Functions of the association

When establishing an association, the founder and members need to understand the functions that the association needs to understand:

– The association will represent and protect the legitimate rights and interests of members in economic and social relations with many domestic and foreign organizations.

– In order to thoroughly understand the association, it is necessary to have advice and criticism to determine the legality of the association’s activities. It can be said that this is a bridge between members, members, and businesses with links to State agencies, agencies, and professional associations in and outside the province to help solve problems related to the development of the association.

– Help members expand and develop more in business, investment, trade, tourism, international cooperation, provide information, advice, organize training, forums for exchange, cooperation, and organize training and seminars for members.

4. Procedures for establishing an association

Step 1: Establishing the Association’s Steering Committee

When establishing an association, the founders must first establish a steering committee to establish the association. The purpose of having a steering committee to establish the association is to be recognized by the state agency in charge of the industry or field in which the association plans to operate.

Step 2: Prepare documents

According to current legal regulations

Step 3: Submit documents

When organizations and individuals of the association submit documents to establish an association, depending on each case and the scope of the association’s activities, they must submit documents in the prescribed places.

– Associations with a nationwide or inter-provincial scope of operation must submit to the Ministry or ministerial-level agency in charge of state management of the industry or field in which the association operates;

– Associations operating within the province must submit their application to the Department of State management of the main industry or field in which the association operates

– Associations operating within the district or commune must submit their application to the People’s Committee of the district or provincial city

Step 4: Conduct the Congress

Within ninety days from the effective date of the decision by the state agency to allow the establishment of the association, the association’s organizing committee must organize the congress.

5. Frequently Asked Questions

5.1. What documents are required to establish an association?

– Application for establishment of the association;

– Draft charter;

– Decision to recognize the Association’s Steering Committee;

– Judicial record of the head of the Steering Committee;

– List of initial members registered to join the association;

– Legal documents on houses and land where the association’s headquarters is located.

– Declaration of assets voluntarily contributed by the founders (if any).

5.2. Is it necessary to establish a Steering Committee when establishing an association?

The answer is YES

– When wanting to establish an association, the founder must establish a Steering Committee. The Steering Committee for the establishment of the association is approved by the state management agency in the main field in which the association is expected to be recognized to operate.

5.3. How many members are there in the association?

Depending on the legal scope of the association, the number of people who voluntarily participate and have an application to join the association is regulated as follows:

– At least 100 citizens whose scope of activities is nationwide or inter-provincial

– At least 20 citizens whose scope of activities is in the district

– At least 10 citizens whose scope of activities is in the commune

– The association of economic organizations whose members are representatives of economic organizations with legal status in Vietnam will include:

+ At least eleven legal representatives in many provinces nationwide

+ At least five legal representatives in the same profession or field of activities in the province.

5.4. What is the support cost for establishing regional and national professional associations?

The support cost for establishing regional and national professional associations can be seen as the maximum support level of 30% of the establishment cost, but not exceeding VND 70 million/regional association, VND 100 million/national association.

In addition, this Circular also stipulates the support cost to form clusters for industrial enterprises. The maximum support level is 50% of the cost but not exceeding VND 150 million/cluster.

5.5. What must be included in the application for establishing an association?

– National name

– Name of the association to be established

– Name of the competent authority permitting the establishment of the association

– Overview of the current situation of the field in which the association plans to operate and state the necessity of establishing the association

– Ensure compliance with the provisions of Decree No. 45/2010/ND-CP and relevant regulations (if any)

– Name in Vietnamese, foreign language (if any), abbreviated name (if any) relevant name in accordance with the field in which the association plans to operate and in accordance with the provisions of law;

– Determine the principles and purposes of the name in accordance with the provisions of law;

– Specifically determine the scope, field of operation, and state management agency in the field in which the association plans to operate;

– State the tasks and powers of the association

– State the required documents of the association.

Above is all the legal information about “Establish an association” that VIET MY LAW AND ACCOUNTING provides to our readers who are interested in this issue. Hopefully the above article will be useful for readers. If you have any questions, please contact the Legal Consulting Hotline 0981.345.339 of Viet My. We are very pleased to answer your questions.