Can a 16-year-old Establish a Company?
Can a 16-year-old start a company?
My son is 16 years old this year. Since there are only two older sisters in the family, he wants to shoulder some responsibility by starting and managing his own company. Is this possible?
Answer: According to Clause 2, Article 17 of the Law on Enterprises 2020, the following organizations and individuals do not have the right to establish and manage enterprises in Vietnam:
- ...- Minors; individuals with limited capacity for civil acts; individuals who have lost the capacity for civil acts; individuals with cognitive or behavioral difficulties; organizations without legal status.
Thus, according to the above regulations, at the age of 16, a minor cannot start or manage a company in their own name.
Can a general partner of this company still be a general partner of another company?
According to enterprise law regulations, can a general partner of this company still be a general partner of another company?
Answer: According to Clause 1, Article 180 of the Law on Enterprises 2020, which regulates the limitations on the rights of general partners as follows:
A general partner is not permitted to be the owner of a private enterprise; nor to be a general partner of another partnership unless agreed upon by the remaining general partners.
Thus, in a partnership company, a general partner of this company can still be a general partner of another company. However, the mandatory condition is that it must be agreed upon by the remaining general partners.
Is it allowed to contribute capital with assets different from the initial commitment?
I would like to ask about capital contribution in a multiple-member limited liability company. Is it allowed to contribute capital with assets different from those initially committed?
Answer: According to Clause 2, Article 47 of the Law on Enterprises 2020, which regulates capital contribution for the establishment of a company as follows:
Members must contribute capital to the company fully and in the type of assets they committed when registering the enterprise within 90 days from the issuance date of the Enterprise Registration Certificate, excluding the time of transporting, importing assets contributed as capital, and carrying out administrative procedures to transfer ownership rights of assets. During this period, members have rights and obligations corresponding to the committed capital contribution ratio. Members of the company are only allowed to contribute capital by other types of assets than those committed if approved by more than 50% of the remaining members.
Thus, according to the above regulations, it is allowed to contribute capital with different types of assets but requires the approval of more than 50% of the remaining members.
Sincerely!
