1. Relatives of civil servants water Can I contribute capital to establish a business?

Pursuant to Clause 4, Article 20 of the 2018 Anti-Corruption Law, the head or deputy head of a state agency will not have the right to contribute capital to an enterprise operating within the industry or profession that That person directly performs state management. At the same time, their relatives such as spouses, fathers, mothers, and children are not allowed to do business within the scope of the industry or profession that that person directly performs state management of.

In addition, for civil servants working in state agencies, based on point b, clause 3, Article 17 of the Enterprise Law 2020, regulations on the right to establish, the right to contribute capital to buy shares, buy capital contributions or manage If an enterprise is an enterprise, organizations and individuals have the right to contribute capital and purchase shares or capital contributions to joint stock companies, limited liability companies, and partnerships according to the provisions of this Law, except for the following cases: : subjects who are not allowed to contribute capital to enterprises according to the provisions of the Law on Cadres and Civil Servants, the Law on Public Employees, and the Law on Prevention and Combat of Corruption. In Article 20, the 2008 Law on Cadres and Civil Servants stipulates the things that cadres and civil servants cannot do, in addition to the things they cannot do specified in Articles 18 and 19 of this Law, cadres and civil servants are not allowed to do things related to production, business, and industry work Accept the provisions of the Law on Prevention and Combat of Corruption, the Law on Savings and Anti-Waste and other things according to the provisions of law and competent authorities. At the same time, apply based on Clause 4, Article 20 of the Law on Prevention and Combat of Corruption 2018, which stipulates the rules of behavior of people with positions and powers as listed from the beginning. Thus, civil servants can still contribute capital to enterprises, except in the case of subjects who are not allowed to contribute capital to enterprises according to the provisions of the Law on Cadres and Civil Servants, the Law on Public Employees, and the Law on Prevention and Combat of Corruption.

In short, according to this regulation, relatives of state civil servants are the heads and deputies of the heads of state agencies. no wayThe right to contribute capital to an enterprise operating within the industry or profession in which that person directly performs state management. This is aimed at preventing violations of fair interests, avoiding abuse of power and violating anti-corruption principles. However, for relatives of civil servants who do not hold positions such as heads or deputies of state agencies, the above regulations may not apply. If there are no other restrictions set out in other legal documents, relatives of civil servants can have the right to contribute capital to establish a business.

2. Can civil servants establish businesses?

Based on the provisions of Clause 2, Article 17 of the Enterprise Law 2020, it can be drawn:

- Organization is a state agency or unit of the people's armed forces that uses state assets to establish a business enterprise to earn private profits for its agency or unit.

- People who are officials, civil servants and public employees according to the provisions of the Law on Cadres, Civil Servants and the Law on Public Employees 2008

- Persons who are officers, non-commissioned officers, professional soldiers, workers, and defense officials in agencies and units of the Vietnam People's Army; That person is an officer, professional non-commissioned officer, or police worker in agencies and units under the People's Public Security of Vietnam, unless the person is appointed as an authorized representative to manage the capital contribution. of the State at Enterprises or management at state-owned enterprises.

- Leaders and professional managers in state-owned enterprises in which 100% of the capital is held by the State, except those appointed as authorized representatives to manage the State's capital contribution in other enterprises (with It can be understood that the person appointed as representative is in the case of a state-owned enterprise investing or owning onepart capital of another enterprise, the government may authorize a representative to manage and represent the interests of the State in that enterprise).

- In addition, minors or people with limited civil capacity; people who have lost their civil act capacity; people with difficulty in cognition and behavior control; Organizations without legal status naturally do not have the capacity to establish businesses.

- A person who is criminally prosecuted (this is the case when that person is accused of one or more crimes and is facing criminal investigation and handling), detained, or serving a sentence imprisonment (this is the case when the person has been sentenced to prison and is serving a prison sentence according to the provisions of law), is serving administrative measures at a compulsory drug treatment facility or a detention facility. compulsory education or are banned by the Court from holding a position, practicing a profession or doing certain jobs in other cases according to the provisions of the Bankruptcy Law and the Law on Prevention and Combat of Corruption.

If required by the Business Registration Authority, the person registering to establish a business must submit a criminal record card to the Business Registration Authority, this is to evaluate the legal history of the person. registration and help the registration authority verify information about the registrant's legal past before accepting a new business registration.

- Organizations that are commercial legal entities will be banned from doing business and operating in certain fields according to the provisions of the Penal Code. Business organizations may be prohibited or restricted in relation to activities. such as producing and distributing drugs, weapons, cigarettes, alcohol, counterfeit goods...

Thus, it can be understood that officials, civil servants and public employees do not have the right to establish and manage businesses in Vietnam. For people in the above group, this regulation helps prevent infringement of fair interests and avoids abuse of power in the process of state and business management.

- Furthermore, according to the provisions of Point d, Clause 2, Article 20 of the 2018 Anti-Corruption Law, people with positions and powers in agencies, organizations, and units will not be allowed to do the following: enterprises, holding positions, management positions, operating private enterprises, limited liability companies, joint stock companies, partnerships, cooperatives in the field that they were previously responsible for managing. within a certain period of time as prescribed by the Government.

According to Decree 59/2019/ND-CP, specifically in Article 22, the areas that people with positions and powers are not allowed to do are establishing, holding positions, management positions, or operating businesses. private company or limited liability company or joint stock company, partnership company, cooperative after resigning from the following positions:

+ Group 1 includes fields under the management of officials and branches: Ministry of Industry and Trade, Ministry of Transport, Ministry of Planning and Investment.Head Ministry of Labor, War Invalids and Social Affairs, Ministry of Agriculture and Rural Development; The financial; Ministry of Natural Resources and Environment; Ministry of Information and Communications; Ministry of Construction; Judicial; The bank of Viet Nam; Government inspector; Committee for Management of State Capital at Enterprises; Government office.

+ Group 2 includes fields under the management of ministries and branches such as the Ministry of Education and Training (responsible for managing and developing the education and training system at the preschool, primary, and secondary levels). schools and universities), Ministry of Science and Technology (administering policies and development programs on science and technology); Ministry of Culture, Sports and Tourism (management of culture, sports and tourism, protection and development of cultural heritage, support of cultural and sports activities, management and development of the tourism industry ); Ministry of Health (responsible for health care, disease treatment...); Vietnam Social Insurance (managing the social insurance system, providing social insurance services); Committee for Ethnic Minorities (implementing ethnic policies).

+ Group 3 will include fields under the management of ministries and branches such as the Ministry of Public Security; Ministry of National Defense and Ministry of Foreign Affairs.

+ Group 4 listed includes programs, projects, and schemes that will be directly researched, developed, or evaluated and approved by people who leave their positions while being officials, civil servants, and public employees. , that project, that project.

The time limit for people with positions and powers not to establish, hold titles, management and executive positions in enterprises after ceasing to hold their positions is prescribed by each group:

+ The first group will be from 12 months to 24 months

+ The second group will be from 6 months to 12 months

+ Group 3, the deadline will be issued by the Minister of Public Security, the Minister of National Defense, and the Minister of Foreign Affairs.

+ Group 4, the deadline is the deadline for completing that program, project, or project

The specific deadlines for each group 1, 2 and 4 are specified by the Minister and heads of ministerial-level agencies.

3. What is the penalty level when civil servants do not have the right to contribute capital but still contribute capital?

According to the provisions of Clause 2, Article 46 Decree 122/2021/ND-CP If civil servants do not have the right to contribute capital but still contribute capital to establish a business or register to contribute capital. Buying shares, repurchasing capital contributions at other economic organizations in improper form as prescribed by law or performing this act without the right to contribute capital, purchase shares of capital contribution, that civil servant may be punished according to regulations.

Fines for the above acts range from 20,000,000 VND to 30,000,000 VND. The specific fine will depend on many factors, including the level of violation, damage caused, and other details during the violation.

The regulations aim to handle and punish violations of the law related to capital contribution and share purchase without complying with regulations and without the right to perform these acts.