How many businesses can an individual establish? in Vietnam

In the spirit of the Law on Enterprises 2020, individuals have the right to establish and manage businesses in Vietnam. However, can an individual establish and manage multiple businesses? 

1.Individuals cannot establish and manage businesses

According to the provisions of Article 17 of the Law on Enterprises 2020, individuals basically have the right to establish and manage businesses in Vietnam according to the provisions of the Enterprise Law except for some of the following prohibited cases:

– Cadres, civil servants and public employees according to the provisions of the Law on Cadres and Civil Servants and the Law on Public Employees;

– Officers, non-commissioned officers, professional soldiers, workers, and defense officials in agencies and units of the Vietnam People’s Army; officers, professional non-commissioned officers, and police workers in agencies and units of the Vietnam People’s Police, except those appointed as authorized representatives to manage the State’s capital contribution in enterprises or manage state-owned enterprises;

– Leading and professional managers in state-owned enterprises as prescribed in Point a, Clause 1, Article 88 of the Law on Enterprises, except those appointed as authorized representatives to manage the State’s capital contribution in other enterprises;

– Minors; people with limited civil act capacity; people who have lost their civil act capacity; people with difficulty in cognition and behavior control; organizations without legal status;

– People who are being prosecuted for criminal liability, detained, are serving prison sentences, are serving administrative measures at compulsory drug treatment facilities, compulsory education establishments or are banned by the Court from holding certain positions, practicing professions or doing certain jobs; Other cases according to the provisions of the Bankruptcy Law and the Law on Prevention and Combat of Corruption.

If requested by the Business Registration Authority, the person registering to establish a business must submit a criminal record card to the Business Registration Authority;

2. How many businesses can an individual establish?

Excluding cases where it is prohibited by law to establish or manage a business, whether individuals can establish multiple businesses depends on the type of business that individual chooses. 

2.1. For individuals establishing a partnership company

Pursuant to the provisions of Clause 1, Article 180 of the Law on Enterprises 2020: “Partnership members of the company are not allowed to own private enterprises, nor are they allowed to be partners of other partnerships unless otherwise agreed by the remaining partners. re.”

Compared with the above regulations, an individual who is a general partner of a partnership company can still become a business owner or general partner of another company if the remaining partners in the company agree. In addition, general partners can freely establish limited liability companies and joint stock companies when needed without being restricted by other legal regulations.

2.2. For individuals establishing a private enterprise

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

According to the provisions of Clauses 3 and 4, Article 188 of the Law on Enterprises 2020, 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 company. In addition, private enterprises are not allowed to contribute capital to establish or purchase shares or capital contributions in partnerships, limited liability companies or joint stock companies.

2.3. For individuals establishing a one-member limited liability company, a limited liability company with two or more members and a joint stock company

Currently, in the Law on Enterprises 2020, there are no regulations that limit the establishment, management or capital contribution of individuals when establishing, managing or being a member of a one-member limited liability company, limited liability company with two or more members, or a joint stock company. Understandably, an individual can establish many limited liability companies and joint stock companies.