Capital Contribution with a Vehicle: Key Considerations

“I invested billions in a truck, and now I’m struggling with the capital contribution procedures for expanding my business,” shared Mr. Nguyen Van A, owner of a transportation company in Ha Dong, Hanoi. Indeed, contributing capital in the form of a vehicle, especially a truck, is becoming increasingly common. So how can you ensure a smooth capital contribution process with your vehicle and avoid legal risks? What should be included in a capital contribution contract using a vehicle? Let’s explore the details with XE TẢI HÀ NỘI!

Understanding Capital Contribution with a Vehicle

Unlike selling a vehicle for cash and then contributing the cash, a capital contribution contract using a vehicle is a legal document that records the use of your vehicle to become a shareholder in a company.

This is like “entrusting” your vehicle to the company, and in return, you receive a capital contribution equivalent to the vehicle’s value at the time of contribution. It may sound complicated, but it’s actually an optimal method for many businesses, especially in the transportation sector.

Essential Elements of a Capital Contribution Contract with a Vehicle

To protect the rights of all parties, a capital contribution contract using a vehicle should include the following:

1. Information of Participating Parties

• Contributing Party: Full name, address, ID/Citizen ID number… for individuals, or company name, registered address, tax code… for organizations.
• Receiving Party: Company name, registered address, tax code, legal representative…

2. Vehicle Information

You need to provide detailed information about your vehicle, including:

• Vehicle type, make, chassis number, engine number…
• Year of manufacture, color, number of seats…
• Legal status: Is the vehicle registered? Has it been used as collateral?…
• Vehicle Value: Both parties need to agree on and clearly state the vehicle’s value at the time of contribution.

3. Rights and Obligations of the Parties

This section is crucial and should clearly state:

• Vehicle Ownership: Who owns the vehicle after the contribution? Can the company sell or transfer the vehicle?…
• Vehicle Usage Rights: Who will use the vehicle after the contribution? For what purpose?…
• Responsibility for Vehicle Maintenance and Repair: Which party is responsible?…
• Responsibility for Taxes and Fees related to the vehicle…

4. Method of Capital Contribution

• Is the contribution the full value of the vehicle or just a portion?
• What is the contribution period?
• Are there any special agreements regarding the use of profits generated by the vehicle?

5. Legal Liabilities

Clearly state the responsibilities of each party in case of breach of contract, and the dispute resolution method…

Important Considerations When Drafting the Contract

Mr. Le Van B, a legal expert at ABC Law Firm, Hanoi, emphasizes: “A small mistake in the contract can cost you your entire vehicle.” Therefore, you should note:

• The contract must be in writing and signed by both parties.
• The contract’s content must be clear, detailed, and avoid ambiguity.
• Consult with a lawyer or legal expert before signing.

XE TẢI HÀ NỘI – Your Trusted Partner

Contributing capital with a vehicle, whether it’s a light truck, van, 1-ton, 2-ton, 3.5-ton, or 8-ton truck, requires careful and methodical execution. We hope the information provided by XE TẢI HÀ NỘI will help you feel more confident in your decision to contribute capital with your vehicle.

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Contact XE TẢI HÀ NỘI now:

Phone: 0968239999 Email: [email protected] Address: No. TT36 – CN9 Road, Tu Liem Industrial Zone, Phuong Canh Ward, Nam Tu Liem District, Hanoi.

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