What are types of enterprises in Vietnam in 2024? What are contents of the enterprise registration application form in Vietnam?

What are types of enterprises in Vietnam in 2024?

Pursuant to Clause 10 Article 4 of the Law on Enterprise in 2020 stipulating following regulations:

Definitions

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For the purpose of this document, the terms below are construed as follows:

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10. “enterprise” means an organization that has a proper name, assets, premises, is established or registered in accordance with law for business purposes.

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As regulations above, an enterprise is an organization established for business purposes, operating under the permission of the State in accordance with the provisions of the law.

An enterprise can be established by one or more individuals or organizations, with proper name, assets, a stable trading location, and is responsible for its obligations.

In 2024, there are 04 types of enterprises in Vietnam:

[1] Sole proprietorships: A sole proprietorship is an enterprise owned by a single individual whose liability for its entire operation is equal to his/her total assets.

[2] Limited liability companies: A “limited liability company” can be a single-member limited liability company or multiple-member limited liability company.

- A single-member limited liability company is an enterprise owned by a single organization or individual. The owner’s liability for the company’s debts and other liabilities shall be equal to the company’s charter capital.

- A multiple-member limited liability company means an enterprise that has 02 – 50 members that are organizations or individuals.

[3] Joint stock companies: The minimum number of shareholders is 03. A shareholder’s liability for the company’s debts and liabilities is equal to the amount of capital contributed to the company by the shareholder; The charter capital is divided into units of equal value called shares.

[4] Partnerships: There are least 02 partners that are joint owners of the company and do business under the same name

What are types of enterprises in Vietnam in 2024? What are contents of the enterprise registration application form in Vietnam? - Image from Internet

What are rights and obligations of enterprises in Vietnam?

Pursuant to Article 7 of the Law on Enterprises in 2020 stipulating rights of enterprises:

Rights of enterprises

Every enterprise has the right to:

1. Freely engage in any business line that is not banned by law.

2. Freely run the business and choose a type of business organization; choose business lines, area of operation and type of operation; change the scale of business and business lines.

3. Choose the method of mobilizing, distributing and using capital.

4. Freely find markets, customers and enter into contracts.

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Pursuant to Article 8 of the Law on Enterprises in 2020 stipulating obligations of enterprises:

Obligations of enterprises

1. Maintain the fulfillment of conditions for conducting restricted business lines and business lines restricted to foreign investors (hereinafter referred to as “restricted business lines”) prescribed by law throughout the course of business operation.

2. Apply for enterprise registration; register changes to enterprise registration information; publish information about the establishment and operation of the enterprise; submit reports and fulfill other obligations prescribed by this Law.

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As regulations above, rights and obligations of enterprises in Vietnam are as follows:

[1] Rights of enterprises

Every enterprise has the right to:

- Freely engage in any business line that is not banned by law.

- Freely run the business and choose a type of business organization; choose business lines, area of operation and type of operation; change the scale of business and business lines.

- Choose the method of mobilizing, distributing and using capital.

- Freely find markets, customers and enter into contracts.

- Export and import.

- Hire employees in accordance with employment laws.

- Apply technological advances to improve business efficiency; have intellectual property rights protected in accordance with intellectual property laws.

- Acquire, use, dispose of their assets.

- Reject unlawful requests for provision of resources from other organizations and individuals.

- File complaints and participate in proceedings as prescribed by law.

- Other rights prescribed by law.

[2] Obligations of enterprises

- Maintain the fulfillment of conditions for conducting restricted business lines and business lines restricted to foreign investors prescribed by law throughout the course of business operation.

- Apply for enterprise registration; register changes to enterprise registration information; publish information about the establishment and operation of the enterprise; submit reports and fulfill other obligations prescribed by this Law.

- Take responsibility for the accuracy of information in the enterprise registration application and reports; promptly rectify incorrect information if found.

- Organize accounting works; pay taxes and fulfill other financial obligations prescribed by law.

- Protect lawful rights and interests of employees as prescribed by law;

- Do not discriminate against or insult employees; do not mistreat or force employees to work; do not employ minors against the law;

- Enable employees to improve their vocational skills through training;

- Buy social insurance, unemployment insurance, health insurance and other insurance for employees as prescribed by law.

- Other obligations prescribed by law.

What are contents of the enterprise registration application form in Vietnam?

Pursuant to Article 23 of the Law on Enterprises in 2020 stipulating contents of the enterprise registration application form in Vietnam:

The following information shall be provided in the enterprise registration application form:

- The enterprise’s name;

- The enterprise’s headquarters, phone number, fax number, email address (if any);

- The enterprise’s business lines;

- The charter capital (or investment capital if the enterprise is a sole proprietorship);

- Types of shares, face value of each type and total authorized shares of each type if the enterprise is a joint stock company;

- Tax registration information;

- Expected quantity of employees;

- Full name, signature, mailing address, nationality and legal documents of each partner (for partnerships) or the owner (for sole proprietorships);

- Full name, signature, mailing address, nationality and legal documents of the legal representative (for limited liability companies and joint stock companies).

Best regards!