The Enterprise Law 2020 stipulates 4 types of enterprises including: Sole proprietorships (DN TN), limited liability company (công ty TNHH), joint-stock company (công ty CP), and partnerships (công ty HD).
According to Clause 1, Article 188 of the Enterprise Law 2020, a sole proprietorship is an enterprise owned by a single individual whose liability for its entire operation is equal to his/her total assets. Besides:
a) Multi-member limited liability companies: According to Clause 1, Article 46 of the Enterprise Law 2020, multi-member limited liability companies is an enterprise that has between 02 and 50 members that are organizations or individuals. A member’s liability for the enterprise’s debts and other liabilities shall be equal to the amount of capital that the member contributed to the enterprise. Besides:
b) Single-member limited liability companies: According to Clause 1, Article 74 of the Enterprise Law 2020, a single-member limited liability company is an enterprise owned by a single organization or individual. The owner’s liability for the company’s debts and other liabilities shall be equal to the company’s charter capital. Beside:
According to Clause 1, Article 111 of the Enterprise Law 2020, a joint-stock company is an enterprise in which:
A joint-stock company has the status of a juridical person from the day on which the Certificate of Enterprise Registration is issued.
In addition, a joint-stock company has the right to issue shares, bonds and other kinds of securities of the company to raise capital.
According to Clause 1, Article 177 of the Enterprise Law 2020, a partnership is an enterprise in which:
A partnership has the status of a juridical person from the day on which the Certificate of Enterprise Registration is issued.
In addition, the Partnership may not issue any kind of securities.
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