Dear Dragon law firm Ha Noi
I’m the owner of machining facilities sewing goods backpacks, bags. I currently have about 10 workers and will recruit more people in the next time. I really want to become a independent company but I don’t understand much about their rights. should the established private enterprise or the limited liability company ? The interests , powers like ? Hopes consulting company to helping
Advisory Committee law firm Dragon answer you as follows:
Pursuant to the Enterprise Law 2005, distinguish of private enterprise and the limited liability company one member :
1) On ownership : All of done by an individual owner
2) Legal status and the scope of responsibilities:
Private business :
- No legal status and subject to unlimited liability on the scope of assets put into business
- No separation about assets put into the business and assets not put into the business.
The limited liability company one member :
- Having the legal person status, and shall be limited in scope capital contribution in the charter capital
- Separating the asset put into the business and personal asset of owners.
3) Increase / decrease of charter capital.
- Private Enterprise: The increase / reduction the registered capital
- The limited liability company one member : To increase the charter capital, but not reduction the charter capital
4) The organizational structure :
- Private Enterprise: Private Enterprise owner directly executive or may hire director of business management.
- The limited liability company one member : The owner maybe the company chairman and managing director, or hire director
5) Disposition of the Company:
- Private enterprises: Can sale or for rent Private enterprises
- The limited liability company one member : No right to sell / lease that only has the right to transfer contributed capital
6) Issuance of Securities:
- Private enterprises: Don’t to be issuance of securities
- The limited liability company one member : To be issuance of securities (bonds).
Dragon Law Firm
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The selection of forms of private enterprise or a Limited Company depends on many factors, the strengths of each person, on here are some points the comparison of two forms to help you have been the correct choice.
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