Do corporations have legal status in Vietnam?
Currently, our company is planning to associate with 9 other companies in the same industry to form a corporation. But now I don't know if the corporation has legal status after the establishment of the corporation?
Do corporations have legal status in Vietnam?
According to Article 194 of the Enterprise Law 2020, the corporation is as follows:
1. A business group or corporation is a group of companies that are interrelated by ownership of shares/stakes or otherwise associated. A business group or corporation is not an enterprise, is not a juridical person and registration of its establishment under this Law is not required.
2. A business group or corporation has a parent company, subsidiary companies and other member companies. They have the same rights and obligations of as those of independent enterprises as prescribed by law.
Thus, when companies join together to form a corporation, according to the regulations in Vietnam, that corporation will not have legal status and it is not a type of enterprise.
Best Regards!
