How many company established is permissible?
(How many company established is permissible?) An organization or an individual wanting to establish an enterprise must meet several certain conditions according to the regulations of law on enterprise. Recently, HNLaw & Partners have received many request on consulting related to enterprise establishment. One of the remarkable questions is: How many companies that one individual is allowed to establish? About this issue, HNLaw & Partners please would like to guide you as follows:
(How many company established is permissible?) Legal base: Law on Enterprise 2014
1. To private enterprises
Article 183 Law on Enterprise 2014 and other documents guiding to execute regulate really detailed and specific as follows:
- An private enterprise is an enterprise owned by one individual and he/she is responsible by all of his/her assets for the enterprise’s operation.
- Each individual can only establish one private enterprise. The owner of a private enterprise can not be simultaneously the owner of a business household or a member of a partnership.
- An private enterprise is not allowed to contribute capital to establish or buy shares, part of contribution of partnerships, limited liability companies or joint stock companies.
Thus, an individual can only establish one private company.
2. To partnerships
Partnership has two types of members which are limited partner and general partner. In particular, general partners have more rights than limited partner, and from there, they are also subject to more constraints.
Article 175 Law on enterprise regulating as follows:
“The general partners are not allowed to be the owner of a private company or a partner of other private company, except for the case that it is agreed by the remaining general partners.”
Thus, how many partnerships that an individual is allowed to establish is based on such individual is the general partner or limited partner.
- If you are a limited partner, you can be the limited partner of other partnerships.
- If you are a general partner and are agreed by the remaining general partners, you can be the general partner of other partnerships.
- If you are a general partner, and do not have the agreement of the remaining general partners in the company, you can only be a limited partner of another partnership.
3. To limited liability companies and joint stock companies
The current law on enterprise does not restrict the ownership of limited liability companies and joint-stock companies, but only some restrictions on transfer of contributed capital in limited liability companies and transfer of shares in joint-stock companies.
Hence, an individual may establish more than one limited liability company and joint stock company.
Hence, how many companies can be established or owned by an individual depends on the type of enterprises that the individual wants to establish.
Above is the advice about “Individuals who establish companies” of HNLaw & Partners. Customers who have any questions or needs to use legal services please contact the Company directly for detailed advice and best support.
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