How many company established is permissible

(How many company established is permissible) An organization or an individual that wants to establish an enterprise must meet several certain conditions according to the regulations of law on enterprise. Recently, HNLaw & Partners have received many request on consulting related to enterprise establishment. One of the remarkable questions is: How many companies that one individual is allowed to establish? About this issue, HNLaw & Partners please would like to guide you as follows:

1. To sole proprietorship

Article 188 Law on Enterprise 2020 and other documents guiding to execute regulate really detailed and specific as follows: 

• A sole proprietorship is an enterprise owned by a single individual whose liability for its entire operation is equal to his/her total assets..
• An individual may only establish one sole proprietorship. The owner of a sole proprietorship must not concurrently own a household business or hold the position of general partner of a partnership.
• A sole proprietorship must not contribute capital upon establishment or purchase shares or stakes of partnerships, limited liability companies or joint stock companies.

Thus, an individual can only establish sole proprietorship.

2. To partnerships

Partnership has two types of members which are limited partner and general partner. In particular, general partners have more rights than limited partner, and from there, they are also subject to more constraints.

Article 177 Law on enterprise regulating as follows:

“A general partner shall be an individual whose liability for the company’s obligations is equal to all of his/her assets;.”

Thus, how many partnerships that an individual is allowed to establish is based on such individual is the general partner or limited partner.

• If you are a limited partner, you can be the limited partner of other partnerships.
• If you are a general partner and are agreed by the remaining general partners, you can be the general partner of other partnerships.
• If you are a general partner, and do not have the agreement of the remaining general partners in the company, you can only be a limited partner of another partnership.

3. To limited liability companies and joint stock companies

The current law on enterprise does not restrict the ownership of limited liability companies and joint-stock companies, but only has some restrictions on transfer of contributed capital in limited liability companies and transfer of shares in joint-stock companies.

Hence, an individual may establish more than one limited liability company and joint stock company.

Hence, how many companies can be established or owned by an individual depends on the type of enterprises that the individual wants to establish.

Above is the advice about “Individuals who establish companies” of Hnlaw & Partners. Customers who have any questions or needs to use legal services please contact the Company directly for detailed advice and best support.

Detailed contact:

HNLAW & PARTNERS LAW FIRM

Address: DBS Building, N028, Lot 31, Commercial Services and Housing Area in Ha Tri, Ha Tri Ward, Ha Dong, Hanoi.

Email: tuvan.hnlaw@gmail.com

Hotline: 0912.918.296

http://www.hnlaw.vn/en/enterprise-consultancy/