What is a Private Enterprise? Dossier for Establishing a Private Enterprise? Latest Application Form for Establishing a Private Enterprise?
What is a Sole Proprietorship?
Based on Article 188 of the Enterprise Law 2020 as follows:
“Article 188. Sole Proprietorship
1. A sole proprietorship is an enterprise owned by a single individual who is liable for all activities of the enterprise to the extent of all his/her assets.
2. A sole proprietorship is not allowed to issue any kind of securities.
3. Each individual is entitled to establish only one sole proprietorship. The owner of a sole proprietorship cannot concurrently be the owner of a household business or a member of a partnership.
4. A sole proprietorship is not allowed to contribute capital to establish or purchase shares, capital contributions in a partnership, limited liability company or joint-stock company.”
A sole proprietorship is an enterprise owned by a single individual who will be responsible for all activities of the enterprise to the extent of all his/her assets.
What is a sole proprietorship? Documents for the establishment of a sole proprietorship? The latest application form for the establishment of a sole proprietorship? (Image from the internet)
Are there any capital requirements for a Sole Proprietorship?
Based on Article 189 of the Enterprise Law 2020 as follows:
“Article 189. Investment capital of the owner of a sole proprietorship
1. The investment capital of the owner of a sole proprietorship is registered by the owner. The owner of a sole proprietorship is obliged to accurately register the total investment capital, which must include the amounts in Vietnamese Dong, freely convertible foreign currencies, gold, and other assets; for other assets, the type, quantity, and remaining value of each type of asset must be specified.
2. All capital and assets, including borrowed capital and rented assets, used for business activities of the enterprise must be fully recorded in the accounting books and financial statements of the enterprise as prescribed by law.
3. During the operation, the owner of a sole proprietorship has the right to increase or decrease his/her investment capital in the business activities of the enterprise. Any increase or decrease in the investment capital must be fully recorded in the accounting books. In case the investment capital is reduced below the registered level, the owner can only reduce the capital after registering with the Business Registration Agency.”
According to this, the investment capital of the owner of a sole proprietorship is registered by the owner himself/herself and there is no regulation on minimum or maximum capital.
What documents are needed to establish a Sole Proprietorship?
Based on Article 21 of Decree 01/2022/ND-CP as follows:
“Article 21. Application for enterprise registration of a sole proprietorship
1. Enterprise registration application form.
2. A copy of the individual's legal papers for the owner of the sole proprietorship.”
Thus, when registering to establish a sole proprietorship, the individual needs to prepare an enterprise registration application form and a copy of the individual's legal papers of the owner of the sole proprietorship.
The latest application form for the establishment of a Sole Proprietorship?
The application form for the establishment of a sole proprietorship is specified in Annex I-1 issued together with Circular 01/2021/TT-BKHDT as follows:
Download the latest application form for the establishment of a sole proprietorship: Here.
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