REGULATIONS ON CONTRACTS MADE BEFORE REGISTRATION OF BUSINESSES

– The enterprise’s founder may sign contracts serving the establishment and operation of the enterprise before and during the process of enterprise registration.

– When the Certificate of Enterprise Registration is granted, the enterprise must continue exercising and performing the rights and obligations under the concluded contracts mentioned in Clause 1 of this Article, and the parties must transfer the rights and obligations in accordance with the Civil Code unless prescribed by the contracts;

(Current regulations prescribe that “When an enterprise is established, the enterprise must continue exercising and performing the rights and obligations under the concluded contracts unless otherwise agreed upon between contracting parties”).

– In case the Certificate of Enterprise Registration is not granted, the persons who conclude the contracts mentioned in Clause 1 of this Article are responsible for their execution. (Current regulations prescribe that “If an enterprise refused the registration of its establishment, the person signing the contract must be responsible or the founder of the enterprise must be jointly responsible for executing that contract”).

Article 18 of Law on Enterprise 2020