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What are the popular types of companies and businesses in Vietnam? Ways to differentiate?

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CORPORATE LIMITED TWO OR MORE MEMBERS

A limited liability company is a type of enterprise with legal status recognized by law (Based on the Enterprise Law 2020). A two-member limited liability company has legal status from the date of issuance of the business registration certificate..
The company owner and the company are two separate legal entities. A company owner is a natural person with rights and obligations corresponding to company ownership.
Type of LLC with 2 or more members must have a minimum of 2 members and a maximum of 50 capital contributing members.

ADVANTAGES	DISADVANTAGES
Limited liability regime: The company is only responsible for debts within the amount of capital contributed to the company, so it poses little risk to capital contributors. The capital transfer regime is strictly regulated so investors can easily control the change of members, limiting the penetration of strangers into the company.	The company's reputation before its partners is somewhat affected by the limited liability regime. Is more strictly regulated by law than a sole proprietorship or partnership. There is no right to issue shares to raise capital.
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SINGLE MEMBER LIMITED COMPANY

A limited liability company is a special form of a limited liability company and has legal status recognized by law (Based on the Enterprise Law 2020). Members have legal status from the date of issuance of the business registration certificate.
A one-member limited liability company with only one member as the owner. The owner of a single-member LLC can be an organization or an individual.
The company owner is not allowed to directly withdraw part or all of the capital contributed to the company. Company owners are only entitled to withdraw capital by transferring part or all of the capital to another organization or individual.
The company owner is not allowed to withdraw the company's profits when the company fails to pay all due debts and other property obligations.

ADVANTAGES	DISADVANTAGES
Limited liability regime: The company is only responsible for debts within the amount of capital contributed to the company, so it poses little risk to capital contributors. The capital transfer regime is strictly regulated so investors can easily control the change of members, limiting the penetration of strangers into the company.	The company's reputation before its partners is somewhat affected by the limited liability regime. Is more strictly regulated by law than a sole proprietorship or partnership. There is no right to issue shares to raise capital.
If you still have any questions, please contact us

JOINT STOCK COMPANY

A joint stock company is a type of company in which the charter capital is divided into equal parts called shares that are established and exist independently.
A joint stock company must have a General Meeting of Shareholders, a Board of Directors and a Director (General Director), and for a joint stock company with more than eleven shareholders, there must be a Control Board. Shareholders are only responsible for debts and other property obligations of the company within the amount of capital contributed to the company, and have the right to freely transfer their shares to others. The minimum number of shareholders is three and no maximum quantity limit.
Joint stock companies have the right to issue securities in accordance with the provisions of securities law.

ADVANTAGES	DISADVANTAGES
Limited liability regime: The company is only responsible for debts within the scope of contributed capital, so the risk level of shareholders is not high. The capital structure of a joint stock company is extremely flexible, allowing many people to contribute capital to the company. The ability to raise capital is very high because the Company has the right to issue shares to raise capital. The transfer of capital in a joint stock company is relatively easy, so the scope of subjects participating in a joint stock company is very wide, even civil servants have the right to buy shares of the company. joint stock company.	The management and operation of a joint stock company is very complicated because the number of shareholders can be very large, many people do not know each other and there can even be division into different shareholder groups. opposing interests. The establishment and management of a joint stock company is also more complicated than other types of companies due to being strictly bound by legal regulations, especially on financial and accounting regimes. li>
If you still have any questions, please contact us

ADVANTAGES

DISADVANTAGES

Limited liability regime: The company is only responsible for debts within the scope of contributed capital, so the risk level of shareholders is not high.
The capital structure of a joint stock company is extremely flexible, allowing many people to contribute capital to the company.
The ability to raise capital is very high because the Company has the right to issue shares to raise capital.
The transfer of capital in a joint stock company is relatively easy, so the scope of subjects participating in a joint stock company is very wide, even civil servants have the right to buy shares of the company. joint stock company.

The management and operation of a joint stock company is very complicated because the number of shareholders can be very large, many people do not know each other and there can even be division into different shareholder groups. opposing interests.
The establishment and management of a joint stock company is also more complicated than other types of companies due to being strictly bound by legal regulations, especially on financial and accounting regimes.
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If you still have any questions, please contact us

Services and reference articles:

>>> Business establishment services/company establishment services

>>> Services for establishing foreign-invested enterprises

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2024-02-29 22:11:15

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Toà** | 30/03/2024 at the time 18:35

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T Toà** | 30/03/2024 at the time 18:36

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SINGLE MEMBER LIMITED COMPANY

JOINT STOCK COMPANY

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