According to Clause 1, Article 38 of the 2014 Law on Enterprises regarding the name of enterprises, the Vietnamese name of an enterprise consists of two elements which are a type of enterprise and proper name respectively.
In which, the name of the business type is “công ty trách nhiệm hữu hạn” or “công ty TNHH” for limited company; written as “công ty cổ phần” or “công ty CP” in respect of a joint stock company; written as “công ty hợp danh” or “công ty HD” in respect of a partnership; written as “doanh nghiệp tư nhân”, “DNTN” or “doanh nghiệp TN” for private enterprises. The proper name is written using the Vietnamese alphabet, the letters F, J, Z, W, digits, and symbols.
According to Article 39 of the Law on Enterprises 2014, three cases that are prohibited in naming an enterprise include:
(i) Picking a name that is the same as or confusingly similar to another enterprise’s name which has been registered;
(ii) Using names of regulatory bodies, armed forces, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations as the whole or part of the enterprise’s proper name, unless otherwise permitted by the aforementioned organization;
(iii) Using words, phrases, and symbols that contravene national historical traditions, culture, morality, and fine customs.
Therefore, the term “tập đoàn” is considered neither the name of the business type nor a prohibited case and can be considered as a “proper name”.
However, in practice, the term “tập đoàn” is being interpreted in different ways. In which, lots of people follow on Circular no 69/2014/NĐ-CP on state economic groups and state corporations to assume that the term “tập đoàn” is the name of a business type, not a proper name. On the other hand, the press so far has often mentioned the phrase “tập đoàn” to refer to a large-scale, multinational enterprise such as “tập đoàn Sam Sung”, “tập đoàn Apple”,… Therefore, if a business uses the term “tập đoàn” in its name, it is likely to mislead the market and consumers, and it would be unreasonable for a small and medium company to be named “tập đoàn”.
For the reason stated above, the business registration office has a practical basis to refuse the naming of an enterprise as mentioned above.
This is the article advising on “Regulations on the addition of “tập đoàn” in the name of a company” by Apra Law Firm. If you have any questions or concerns, please contact the hotline for further advice and support.
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