What is legal status? Does a limited liability company with 2 or more members have legal status?

What is legal status?

According to Article 74 of the 2015 Civil Code, an organization is considered to have legal status when it meets the following requirements: Is established according to the provisions of law; Have an organizational structure according to the provisions of law; Have independent assets from other individuals or legal entities and be responsible for your own assets and independently participate in legal relations on your behalf. Specific regulations are as follows:

“Article 74. Legal entities

1. An organization is recognized as a legal entity when it meets all the following conditions:

a) Is established according to the provisions of this Code and other relevant laws;

b) Has an organizational structure as prescribed in Article 83 of the Code this;

c) Have assets independent of other individuals or legal entities and are responsible for their own assets;

d) Participate in legal relations independently on their own behalf.

2. All individuals and legal entities have the right to establish legal entities, unless otherwise provided by law.”

Company Does limited liability with 2 or more members have legal status?

Pursuant to Clause 2, Article 46 of the Law on Enterprises 2020, which regulates limited liability companies with two or more members, specifically:

– A limited liability company with two or more members is an enterprise with from 02 to 50 members who are organizations and individuals. Members are responsible for debts and other property obligations of the enterprise within the amount of capital contributed to the enterprise, except for the cases specified in Clause 4, Article 47 of this Law. Members’ capital contributions can only be transferred according to the provisions of Articles 51, 52 and 53 of this Law.

– A limited liability company with two or more members has legal status from the date of issuance of the Business Registration Certificate.

– Limited liability companies with two or more members are not allowed to issue shares, except to convert into a joint stock company.

– Limited liability companies with two or more members may issue bonds according to the provisions of this Law and other relevant laws; The issuance of individual bonds must comply with the provisions of Article 128 and Article 129 of this Law.”

Thus, a limited liability company with two or more members has legal status from the date of issuance of the Business Registration Certificate.

Does a single-member limited liability company have legal status?

In Article 74 Law on Enterprises 2020 regulates csingle-member limited liability companies as follows:

– A one-member limited liability company is an enterprise owned by an organization or an individual (hereinafter referred to as the company owner). The company owner is responsible for the company’s debts and other property obligations within the company’s charter capital.

– A one-member limited liability company has legal status from the date of issuance of the Business Registration Certificate.

– A one-member limited liability company is not allowed to issue shares, except in the case of converting into a joint stock company.

– One-member limited liability companies may issue bonds according to the provisions of this Law and other relevant laws; The issuance of individual bonds according to the provisions of Articles 128 and 129 of this Law.

Provided in Clause 2, Article 74 of the Law on Enterprises 2020, a one-member limited liability company has legal status from the date of issuance of the Business Registration Certificate.

Does a Joint Stock Company have legal status?

Article 111 of the Law on Enterprises 2020 regulates joint stock companies, in which:– A joint stock company is an enterprise in which:

+ charter capital is divided into equal parts called shares;

+ Shareholders can be organizations or individuals; The minimum number of shareholders is 03 and there is no limit to the maximum number;

+ Shareholders are only responsible for the debts and other property obligations of the enterprise within the amount of capital contributed to the enterprise;

+ Shareholders have the right to freely transfer their shares to others, except for the cases specified in Clause 3, Article 120 and Clause 1, Article 127 of this Law.

– A joint stock company has legal status from the date of issuance of the Business Registration Certificate.

– A joint stock company has the right to issue shares, bonds and other securities of the company.

As stipulated in Clause 2, Article 111 of the Law on Enterprises 2020, a joint stock company has legal status from the date of issuance of the Business Registration Certificate.

Does a partnership company have legal status?

As stipulated in Article 177 of the Law on Enterprises 2020, a partnership company has legal status from the date of issuance of the Business Registration Certificate, specifically:

– A partnership is an enterprise in which:

+ There must be at least 02 members who are joint owners of the company, doing business together under a common name (hereinafter referred to as partnership members). In addition to general partners, the company may have additional capital contributing members;

General partners must be individuals, responsible with all their assets for the company’s obligations;

+ Capital contributing members are organizations and individuals and are only responsible for the company’s debts within the amount of capital committed to contributing to the company.

– A partnership company has legal status from the date of issuance of the Business Registration Certificate.

– Partnership companies are not allowed to issue any type of securities.

Does a private enterprise have legal status?

In Clause 1, Article 188 of the Law on Enterprises 2020, 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.

Pursuant to the provisions of Clause 3, Article 190 of the Law on Enterprises 2020, 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. Therefore, private enterprises do not have legal status.