Tiếng Việt
中文 (中国)If the owner of a private business dies, the business owner’s children can is legal content that readers often need to check carefully before implementing it in practice. This article has been systematized by ANT Legal in an easy-to-understand way, helping individuals and businesses understand the main issues, common risks and appropriate solutions.
Can the child become the owner of that private enterprise when the owner of a private enterprise dies?
Can the child become the owner of that private enterprise or not, based on the provisions of Clause 2 and Clause 3, Article 193 of the Law on Enterprises 2020, content content as follows:
Exercising the rights of private business owners in some special cases1. In case the owner of a private enterprise is detained, is serving a prison sentence, or is serving administrative measures at a compulsory drug treatment facility or compulsory education facility, he or she authorizes another person to exercise his or her rights and obligations.2. In case the owner of a private enterprise dies, the heir or one of the heirs according to the will or by law is the owner of the private enterprise according to the agreement between the heirs. In case the heirs cannot reach an agreement, they can register to convert into a company or dissolve the private enterprise.3. In case the owner of a private enterprise dies without an heir, the heir refuses to inherit or is disinherited, the assets of the private enterprise owner will be handled according to the provisions of civil law.4. In cases where the owner of a private enterprise has limited or lost capacity for civil acts, and has difficulty in cognition and behavior control, the rights and obligations of the private enterprise owner are exercised through a representative.5. In case the owner of a private enterprise is banned by the Court from practicing certain professions or doing certain jobs within the scope of the enterprise’s business lines, the private enterprise owner will temporarily suspend or terminate business in the relevant industry or profession according to the Court’s decision or transfer the private enterprise to another individual or organization.
Thus, if the private enterprise owner dies, the child can become the owner of the private enterprise in these cases. after:
- Inherited by will or by law as a private business owner.
- Being one of the heirs according to the will or law of the owner of a private enterprise and the heirs agree to choose the wife of the owner of the private enterprise as the new owner of the private enterprise.
What are the procedures for changing the type of business in case the owner of a private business dies and the heirs cannot reach an agreement?
Procedures for changing the type of enterprise in case the owner of a private enterprise dies and the heirs cannot reach an agreement are specified in Clauses 2 and 3, Article 205 of the Law on Enterprises 2020, the content is as follows:
Convert private enterprises into limited liability companies, joint stock companies, and partnerships…2. Within 03 working days from the date of receiving the dossier, the Business Registration Authority shall review and issue a Business Registration Certificate if the conditions specified in Clause 1 of this Article are met and update the legal status of the business on the National Business Registration Database.3. The converted company automatically inherits the rights and obligations of the private enterprise from the date of issuance of the Business Registration Certificate. The owner of a private enterprise is personally responsible with all of his or her assets for all debts arising before the date the converted company is granted a Business Registration Certificate.
According to the above regulations, the procedures for converting the type of enterprise are as follows:
- Submit an application to change the type of business, from a private enterprise to the desired type of company.
- Within 03 working days from the date of receiving the application, the Business Registration Authority reviews and issues a Business Registration Certificate if eligible and updates the legal status of the business on the National Business Registration Database.
Note on Applying Current Legal Regulations
This article belongs to the Business & M&A group and is presented for reference purposes, helping readers understand the legal issue at an overview level before preparing a dossier or carrying out a transaction.
Legal regulations may vary depending on the timing, locality, type of dossier and specific circumstances. If you need to determine the exact legal basis applicable to your case, you should contact ANT Legal’s lawyers at 0966.475.966 for review and advice before proceeding.
Common Legal Risks to Note
- Applying legal instruments that have been amended, supplemented or replaced.
- Preparing an incomplete set of documents, materials or necessary evidence.
- Misunderstanding the conditions, procedure, timeline or competent authority.
- Signing, submitting a dossier or carrying out a transaction before fully assessing legal risks.
How Can ANT Legal Support You?
ANT Legal can review the specific circumstances, examine the dossier, identify the applicable legal basis, advise on an appropriate handling plan and represent clients in working with individuals, organizations or competent authorities where necessary.
For prompt advice, you may contact a lawyer at 0966.475.966.
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