“My father was a foreigner and a shareholder in a company in Vietnam. After his death, the family wanted to proceed with the inheritance of this capital contribution, but they were unsure whether the heir abroad would be eligible. Furthermore, the company stated that transferring ownership of the capital contribution might involve regulations on foreign investment. So, in the case of a business with foreign elements, how will the inheritance be handled?”
1. Will the heir be entitled to receive the capital contribution or shares in the business?
In principle, the capital contribution or shares legally owned by the deceased can become part of the inheritance. However, whether the heir can directly register the capital in their name depends on the type of business, the company's charter, and relevant laws on foreign investment.
In some cases, foreign individuals who are heirs may have to complete additional procedures related to investment registration or changes to business information before officially becoming members or shareholders.
2. Why is inheriting a business with foreign elements often more complicated?
Unlike ordinary assets, capital contributions in a business are often linked to management rights, voting rights, and specific legal conditions. Besides determining who is entitled to the inheritance, the parties also need to review the percentage of foreign ownership, the business sector, and any applicable legal restrictions on foreign investors.
In practice, many families focus only on identifying the heirs while neglecting business procedures, leading to the ownership rights not being fully updated on paper for a long time.
3. How should this be handled?
When the inheritance involves a business with foreign elements, both the inheritance documents and the business documents need to be reviewed simultaneously to accurately assess the heir's rights.
Furthermore, it is necessary to review the company's charter, current ownership structure, and relevant legal regulations concerning foreign investors before proceeding with the asset transfer procedure. Early assessment of these legal factors will help mitigate the risk of disputes among heirs or complications in updating business information later on.
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