What are types of enterprises in Vietnam ?

I am a foreigner. I am interesting in setting a software development company in Vietnam ?

Attorneys in Danang, Vietnam advise about types of companies in Vietnam ? 

Law on Enterprises No. 68/2014/QH13 dated November 26, 2014 (hereinafter referred to as “Law on Enterprises” prescribles different types of enterprises, as follows:

Forms of Enterprises in Vietnam:

One member limited liability companies

A single member limited liability company is an enterprise owned by one organization or individual. The company owner is liable for all debts and other property obligations of the company to the extent of the amount of the charter capital of the company. A one member limited liability company may not issue shares (Clauses 1, 3 Article 73,  Law on Enterprises).

Limited liability companies with two or more members

A limited liability company with two or more members is an enterprise in which: A member may be an organization or an individual, the number of members shall not exceed fifty (50); a member shall be liable for the debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise, except for the case stipulated in Clause 4 Article 48 of this Law; the share of capital contribution of each member may only be assigned in accordance with Articles 52, 53 and 54 of this Law. A limited liability company with two or more members may not issue shares (Clauses 1, 3 Article 47,  Law on Enterprises).

Shareholding companies

A shareholding company is an enterprise in which: the charter capital is divided into equal portions called shares; shareholders may be organizations or individuals; the minimum number of shareholders is three and there is no restriction on the maximum number; shareholders are liable for the debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise; shareholders may freely assign their shares to other persons, except in the cases stipulated in Clause 3 Article 119 and Clause 1 Article 126 of this Law. A shareholding company may issue all classes of shares to raise funds (Clauses 1, 3 Article 110,  Law on Enterprises).

Private Enterprises

A private enterprise is an enterprise owned by one individual who shall be liable for all activities of the enterprise to the extent of all his or her assets. Private enterprises may not issue any type of securities. Each individual may only establish one private enterprise; the owner of a private enterprise must not concurrently act as the head of a business family household or a member of a partnership. Private enterprises are not permitted to contribute capital to establish or purchase shares or shares of capital contribution in partnerships, limited liability companies or shareholding companies (Article 183, Law on Enterprises).

Partnerships

A partnership is an enterprise in which: there must be at least two members being co-owners of the company jointly conducting business under one common name (hereinafter referred to as unlimited liability partners). In addition to unlimited liability partners, the company may also have limited liability partners. Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets. Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company. Partnerships may not issue any type of securities (Article 172, Law on Enterprises).

Related topics:

Forms of foreign investment in Vietnam

Establish an FDI company in trade, import-export sector in Vietnam

Set up LLC with two or more members in Vietnam, with capital contributed by foreign investors

Set up 100% FDI company in Vietnam in the form of a single member LLC

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DMS Lawfirm in Vietnam
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(Signed)
Lawyer Do Minh Son