Law on Enterprises 2020: New Regulations on Partnerships

Enterprise Law 2020: New provisions on partnerships - Illustrative photo.

To be specific: in Article 177 of the Enterprise Law 2020, it stipulates that a partnership is an enterprise in which:

- There must be at least 02 members who are general partners of the company, jointly conducting business under the same name (hereinafter referred to as general partners). In addition to general partners, the company may have limited partners;- General partners must be individuals who are liable for the company's obligations with all their assets;- Limited partners can be organizations or individuals who are liable for the company's debts only within the capital contribution they have committed to the company.

Additionally, in Article 20 of the Enterprise Law 2020, the registration dossier for a partnership includes:

1. Application for enterprise registration.
2. Company charter.
3. List of members.
4. Copies of legal documents of individuals for the members.
5. Copy of Investment Registration Certificate for foreign investors as per the Investment Law.

Moreover, in Article 179 of the Enterprise Law 2020, it also specifies that the assets of a partnership include:

- Contributed assets of members that have been transferred to the company;- Assets created under the company's name;- Assets obtained from business activities conducted by general partners in the name of the company and from the company's business activities conducted by general partners in their own name;- Other assets as prescribed by law.

Note: In Article 77 of the Enterprise Law 2020, it is also stipulated that a partnership has legal entity status from the date of issuance of the Enterprise Registration Certificate and is not allowed to issue any type of securities.

For more details, refer to the full text at Enterprise Law 2020, effective January 1, 2021.

Le Vy

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