There are 5 types of company in Vietnam: joint stock company, limited liability company, partnership, and sole proprietorship.

The first type of company is joint stock company

Joint stock company is an enterprise that:

Charter capital is divided into equal parts called shares

Shareholders can be organizations or individuals. The minimum number of shareholders is three and there is no limit to the maximum number.

Shareholders are solely accountable for the firm's debts and other property responsibilities up to the amount of capital they contributed to the enterprise

A Joint stock company is a legal person.

A joint-stock company has the right to issue shares, bonds and other securities of the company.

Organizational structure:

Unless otherwise provided by the law on securities, a joint-stock company has the right to choose an organization to manage and operate according to one of the following two models:

The General Meeting of Shareholders, the Board of Directors, the Control Board and the Director or General Director. In case a joint-stock company has less than 11 shareholders and the shareholders are organizations holding less than 50% of the total shares of the company, it is not required to have a Supervisory Board.

The General Meeting of Shareholders, the Board of Directors and the Director or General Director. In this case, at least 20% of the members of the Board of Directors must be independent members and have an Audit Committee under the Board of Directors. The organizational structure, functions and duties of the Audit Committee are specified in the company's charter or the operation regulations of the Audit Committee issued by the Board of Directors.

The second type of company is partnership

A partnership is a kind of enterprise in which:

There must be at least 02 members who are general owners of the company, doing business together under a general name (hereinafter referred to as general partners). In addition to general partners, the company may have additional capital contributors.

General partners must be individuals, responsible with all their assets for the obligations of the company.

Capital-contributing members are organizations and individuals, they are solely accountable for the firm’s debts and other property responsibilities up to the amount of capital they contributed to the enterprise.

A partnership company is a legal person

Partnerships may have no right to issue any security.

The third type of company is limited liability company

A limited liability company is a legal person.

A one-member limited liability company may not issue shares (except for conversion into a joint stock company) and may issue bonds.

Organizational structure:

The last type of company is sole proprietorship

A sole proprietorship is an enterprise owned by an individual who is solely responsible with all his assets for all activities of the business.

A sole proprietorship is not a legal person.

Sole proprietorship may not issue securities of any kind.

Each person is only entitled to establish a private enterprise. Owner of a private enterprise cannot concurrently be the owner of a business household or a general partner of a partnership.

A private enterprise is not entitled to contribute capital to the establishment or purchase shares or contributed capital in a partnership, limited liability company or joint-stock company.

Choosing the type of business depends on the business purpose as well as the intention of the business owner. For specific advice, please contact the phone number: +84-916-545-618

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