If the owner of a private enterprise dies, can his wife become the owner of that private enterprise? If the owner of a private enterprise dies and the heirs cannot reach an agreement, what type of business can the private enterprise be converted into?

1. If the owner of a private enterprise dies, can his wife become the owner of that private enterprise?

If the owner of a private enterprise dies, can his wife become the owner of that private enterprise or not, based on the provisions of Clauses 2 and 3, Article 193 of the Law on Enterprises 2020, the content is as follows:

Exercising the rights of the owner of a private enterprise in a number of special case

1. 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, or 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 a profession 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, his wife can become the owner of the private enterprise in these cases. following:

+ Inherited by will or by law as the owner of a private enterprise.

+ Being one of the heirs by will or by law of the owner of a private enterprise and the heirs agree to choose the wife of the owner of a private enterprise as the new owner of the private enterprise.

2. If the owner of a private enterprise dies and the heirs cannot reach an agreement, what type of enterprise can the private enterprise be converted into?

If the owner of a private enterprise dies and the heirs cannot reach an agreement, the private enterprise can be converted into the type of enterprise according to the provisions of Clause 1 in Article 205 of the Law on Enterprises 2020, with the following content:

Conversion of a private enterprise into a limited liability company, joint stock company, partnership company

1. A private enterprise can be converted into a limited liability company, joint stock company or partnership according to the decision of the private enterprise owner if it fully meets the following conditions:

a) The converted enterprise must meet all the conditions prescribed in Clause 1, Article 27 of this Law;

b) The private enterprise owner commits in writing to take personal responsibility for all assets. its assets for all unpaid debts and commits to fully pay the debt when due;

c) The owner of the private enterprise has a written agreement with the parties to the unliquidated contract on the converted company receiving and continuing to perform those contracts;

d) The owner of the private enterprise commits in writing or has a written agreement with the other capital contributing members on the continuation Receive and use existing labor from private enterprises.

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Thus, in case the owner of a private enterprise dies and the heirs cannot reach an agreement, the private enterprise can be converted into a limited liability company, joint stock company or partnership if it meets the conditions in the above regulations and the heirs choose to register to convert into a company.

3. What are the procedures for changing the type of enterprise in case the owner of a private enterprise 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

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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 application to change business type, from private enterprise to desired company type.

+ Within 03 working days from the date of receipt of 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.