Is it Permissible to Establish or Own a Private Enterprise?

According to the provisions of the Enterprise Law 2014, an enterprise is an organization with its own name, assets, business office, registered for establishment according to legal regulations for business purposes.

In which, a partnership company must have at least 02 members who are joint owners of the company, conducting business jointly under a common name (commonly referred to as general partners). Apart from the general partners, the company may have additional capital-contributing members;

- General partners must be individuals who are liable with their entire assets for the company's obligations;

- Capital-contributing members are only liable for the company's debts within the scope of the capital contributed to the company.

Article 175 of the Enterprise Law 2014 stipulates:

"Article 175. Restriction of Rights for General Partners

1. General partners are not allowed to be the owner of a private enterprise or general partners of another partnership company, except with the consensus of the remaining general partners.

2. General partners are not permitted to conduct business activities in their name or in the name of others that are similar to the company's business sector for self-serving purposes or for the benefit of other organizations or individuals.

3. General partners are not allowed to transfer a part or all of their capital contribution in the company to others without the consent of the remaining general partners."

Thus: Based on the regulations quoted above, a general partner is not allowed to be the owner of a private enterprise except with the consensus of the remaining general partners.

Therefore: In the case you provided, you are currently a general partner in a partnership company established by you and another person, hence, in principle, you are not allowed to be the owner of a private enterprise. This means you cannot establish a private enterprise at this time.

However, you can negotiate with the remaining general partner of the company. If the remaining general partner of the company agrees, you may establish a private enterprise according to legal regulations.

The above is our advisory opinion concerning the matter you are inquiring about.

Respectfully!