Authentication of transactions established in the name of a company in the process of incorporation - International experience and implications for Vietnam

Abstract

The creation of a company requires  necessary preparatory activities. The larger the company, the more rigorous and thoughtful the preparation should be. In practice, many companies proactively carry out necessary transactions for future settlement. In the context where a transaction is established for the benefit of a legal entity that has not yet officially come into existence at the time of the transaction, it is essential to place the transaction within a special legal framework that prevents risks of harm to the parties involved. Practice also shows that two types of legal entities genuinely need to establish transactions during the preparation period for their formation: Cooperatives and companies. Both are commercial legal entities, which can be collectively referred to as companies. National laws pay close attention to regulating this type of transaction. The experiences of other countries provide valuable lessons for Vietnam.