1. Mandatory Disclosure of Beneficial Owners

According to Clause 2, Article 1 of Law No. 76/2025/QH15, from July 1, 2025, all businesses operating in Vietnam must:

• Collect, retain, and regularly update complete information on beneficial owners — individuals who have de facto control over the company, even if they do not directly hold equity;
• Provide such information to competent authorities upon request for investigation, management, or inspection purposes.

Who is a Beneficial Owner? Vietnamese enterprise law

The new regulation defines a beneficial owner as:

“An individual who effectively owns capital contributions or has the ability to control operations and key decisions of the business, excluding some state-owned enterprises.”

This clarification is vital to prevent “front” ownership and better monitor capital flows, especially in the context of global economic integration.

2. Legal Obligations Effective from July 1, 2025 Vietnamese enterprise law

In addition to disclosing beneficial owners, businesses must also fully comply with obligations stated in the current Enterprise Law, which remains effective and will be supplemented. Specifically:

Business Operation Requirements Vietnamese enterprise law

• Ensure compliance with all conditions for the registered business sectors, including those applicable to foreign investors.
• Maintain these conditions consistently, not just at the time of establishment.

Documentation & Reporting Obligations

• Register the enterprise, report any information changes, and publicly disclose business data as per regulations.
• Take full responsibility for the accuracy of submitted information.
• Promptly update and correct any errors found in published information.

Financial and Accounting Obligations

• Maintain proper accounting records and documentation in line with standards.
• Submit taxes fully and on time and meet all financial obligations to the state.

Labor and Welfare Obligations

Businesses are responsible for:

• Ensuring employee rights following the law;
• Avoiding discrimination, mistreatment, or illegal employment;
• Implementing social insurance, unemployment insurance, and health insurance policies;
• Providing training and skill development;
• Creating a safe, equitable, and sustainable working environment.

3. Why Legal Compliance is Non-Negotiable Vietnamese enterprise law

Avoid Inspection and Penalties
From July 1, 2025, authorities will strengthen legal compliance checks, especially on businesses failing to update beneficial ownership information. Violations may result in:

• Fines and administrative penalties;
• Suspension of business operations;
• Damaged reputation among partners, investors, especially in finance, manufacturing, and trade. Vietnamese enterprise law

Long-Term Business Protection
Compliance with the new law enables businesses to:

• Enhance internal governance.
• Build credibility with stakeholders and regulators.
• Gain easier access to capital and major contracts;
• Prevent internal risks or “hidden” control by undisclosed parties.