Can business owners lease private businesses?

Can business owners lease private businesses? Is the owner of a private business responsible for that business during the lease period?

1. What is a private enterprise?

Pursuant to Article 188 of the Law on Enterprises 2020 regulates private enterprises as follows:

Private enterprises

1. A private enterprise is an enterprise owned by an individual who is responsible with all of his or her assets for all activities of the enterprise.

2. Private enterprises are not allowed to issue any type of securities.

3. Each individual is only entitled to establish one private enterprise. The owner of a private enterprise cannot simultaneously be the owner of a business household or a general partner of a partnership.

4. A private enterprise is not allowed to contribute capital to establish or purchase shares or capital contributions in a partnership, limited liability company or joint stock company.

Accordingly, a private enterprise is an enterprise owned by an individual who is responsible with all of his or her own assets for all activities of the enterprise.

Private enterprises are not allowed to issue any type of securities. Private enterprises are not entitled to contribute capital to establish or purchase shares or capital contributions in partnerships, limited liability companies or joint stock companies.

In addition, each individual is only entitled to establish one private enterprise. The owner of a private enterprise cannot simultaneously be the owner of a business household or a general partner of a partnership.

2. How is the management of private enterprises regulated?

Pursuant to Article 190 of the Law on Enterprises 2020, the regulations on private enterprise management are as follows:

Private enterprise management

1. The owner of a private enterprise has full authority to decide on all business activities of the private enterprise, the use of profits after paying taxes and performing other financial obligations according to the provisions of law.

2. Private business owners can directly or hire others to act as Director or General Director to manage and operate business activities; In this case, the private enterprise owner is still responsible for all business activities of the private enterprise.

3. The owner of a private enterprise is the legal representative, representing the private enterprise as a requester to resolve a civil matter, plaintiff, defendant, person with related rights and obligations before the Arbitrator or Court, representing the private enterprise to exercise other rights and obligations according to the provisions of law.

Accordingly, the private enterprise owner is the legal representative of the private enterprise, with full authority to decide on all operations. business activities of a private enterprise.

The owner of a private enterprise can directly or hire another person to be the Director or General Director to manage and operate business activities.

3. Is a private enterprise owner who leases a private enterprise still responsible for that enterprise during the lease period?

Pursuant to Article 191 of the Law on Enterprises 2020, the regulations on leasing private enterprises are as follows:

Leasing a private enterprise

The owner of a private enterprise has the right to lease the entire private enterprise of the enterprise. but must notify in writing along with a notarized copy of the rental contract to the Business Registration Authority and tax authority within 03 working days from the effective date of the rental contract. During the lease term, the private business owner is still responsible before the law as the owner of the private business. The rights, obligations and responsibilities of the owner and tenant for the business activities of a private enterprise are specified in the lease contract.

Accordingly, the owner of a private enterprise has the right to lease his entire private enterprise but must carry out written notification procedures accompanied by a notarized copy of the lease contract to the Business Registration Authority and tax authority within 03 working days from the effective date of the lease contract. force.

And according to the law, during the lease period, the private business owner is still responsible before the law as the owner of the private business.

The rights, obligations and responsibilities of the owner and tenant for the business activities of a private enterprise are specified in the lease contract.

Thus, in your case, even though you have gone abroad and subleased the entire business, in fact you are still the owner of the private enterprise. Therefore, you are still responsible before the law as a private business owner.