LEGAL FORMS OF ORGANIZATIONS

1. Legal form of organization : loai hinh doanh nghip 2. Joint-stock company : cng ty c phn 3. Partnership : cng ty hp danh 4. Private enterprise : doanh nghip t nhn 5. Business registration certificate : giy phep ng ky kinh doanh 6. Limited liability company with more than one member: cng ty TNHH 2 TV tr ln 7. Sola member limited liability company: cng ty TNHH MTV 8. Charter capital : vn iu l 9. Shareholder : c ng 10. Capital mobilization : s huy ng vn 11. Ordinary share : c phiu thng 12. Preference share : c phiu u ai 13. Preference shareholder : c ng u ai 14. Voting preference share : c phiu u ai co quyn biu quyt/bu phiu 15. Dividend preference share : c phiu u ai c tc 16. Redeemable preference share : c phiu u ai co th chuc lai 17. Founding shareholder : c ng sang lp 18. Shareholderss Genreral Meeting : ai hi c ng 19. Dispute : tranh chp 20. Articles of co-partnership : iu l hp danh 21. Securities : chng khoan, trai phiu 22. General partner : thanh vin hp danh 23. Limited partner : thanh vin gop vn 24. Legal status : t cach phap nhn 25. Appropriate authority : nha chc trach thich hp 26. Responsible : chiu trach nhim 27. Committee : cam kt 28. Contribute : ong gop 29. issue (issuing) : phat hanh 30. Contract : trai ngc 31. Owner (n)-owned(adj) : chu s hu 32. Liable (adj) liability (n) : trach nhim phap ly 33. prohibite (v) : ngn cm 34. offer (v) : ban 35. Divide : chia ct 36. Transfer : chuyn nhng 37. Stipulate : quy inh 38. asset : tai san 39. terminate : hoan thanh

In order to do business, you should register your business with the appropriate authorities ( kinh doanh, ban cn phai ng ky doanh nghip cua cac ban vi cac nha chc trach thich hp). To do this, you first need to decide which legal form of organization is suitable for your business ( Lam iu nay, iu u tin ban cn la quyt inh loai hinh doanh nghip nao la thich hp vi doanh nghip cua ban ). In business, there are many legal forms of organizations. Each form has certain advantages and disadvantages (Mi loai hinh co nhng li th va nhng bt li nht inh ). The four forms discussed in this lesson are limited liability company, joint-stock company, partnership and private enterprise (Bn loai hinh c cp trong bai nay la Cty TNHH, Cty CP, Cty hp danh, va DNTN). A limited liability company (LLC) with more than one member is an enterprise in which members can be organization(s) and/or individual(s) (Mt Cty TNHH vi nhiu hn 1 thanh vin la DN vi thanh vin co th la t chc hay ca nhn ), and the total number of member is no more than fifty ( va tng s thanh vin la ko qua 50 ). Members, are responsible for debts and other liabilities of the enterprise within the amount of capital that they committed to contributing to the enterprise ( Thanh vin, chiu trach nhim v s n va nhng nghia vu cua DN nm trong s c phn ma ho cam kt ong gop cho DN). It is given a legal status from the issung date of the business registration certificate and is not entitled to issue share (No a ra t cach phap nhn bt u t ngay ng ky giy chng nhn kinh doanh va ko co quyn phat hanh c phiu ). The limited liability company with more than one member is in contrast to a sole member limited liability company which is an enterprise owned by one organization or individual (Cty TNHH nhiu thanh vin trai ngc vi Cty TNHH MTV-c s hu bi 1 t chc hay ring le). The company owner is liable for debts and other obligations of the company within the charter capital ( Chu nhn Cty thi co trach nhim vi s n va nhng trach nhim khac cua cng ty trong vn iu l ). Like the limited liability company with more than one member, this types of company is prohibited from offering shares ( Nh Cty TNHH nhiu thanh vin, nhng loai hinh Cty nay bi ngn cm ban c phiu ). Both of the two types of limited liability companies are given legal status from the issuing date of the business registration certificate (Ca 2 loai hinh Cty TNHH nay u c t cach phap nhn bt u t ngay ng ky chng nhn kinh doanh). A joint-stock company is an enterprise in which charter capital is divided into equal portions known as shares (Cty CP la DN trong o vn iu l c chia thanh nhng phn bng nhau c bit n nh c phiu ). Shareholders can be organization or individuals (C ng co th la nhng t chc hay nhng ca nhn ). The minimum member of shareholders is three and there is no restriction on the maximum number of shareholders (S thanh vin c ng nho nht la 3 va ti a la ko han ch ). Shareholders are liable for debts and other liabilities of the company within the amount of the capital that they contributed (Nhng c ng co trach nhim nhng mon n va nhng nghia vu khac cua Cty nm trong s c phn ma ho ong gop). They are free to transfer their shares (Ho c t do chuyn giao quyn s hu nhng c phiu cua ho). The joint-stock company is given a legal status from the issuing date of the business registrazation certificate (Cty CP c co t cach phap nhn t ngay ng ky chng nhn kinh doanh ).

It is entitled to issue securities for the purpose of capital mobilization ( o la quyn cho s an toan c t ra cho vic huy ng vn ). The joint-stock company must issue ordinary shares (Cty CP phai phat hanh c phiu thng ). Owners of such shares are referred to as ordinary shareholders ( Nhng chu nhn cua nhng c phiu c quy vao nhng c ng thng). It can also issue, preference shares ( No cung co th lu hanh c phiu u ai). Owners of preference shares are referred to as preference shareholders. Preference shares include: voting preference share, dividend preference share, redeemable preference share and other types of preference share as stipulated in the company charter (C phn u ai bao gm: nhng c phn u ai co quyn biu quyt, c phiu u ai c tc, c phiu u ai co th chuc lai va nhng kiu c phn u ai khac nh c quy inh trong cng ty c phiu ). Voting preference shares can be owned only by government-authorized organizations and founding shareholders ( C phn u ai co quyn biu quyt chi c s hu bi nhng t chc c uy quyn cm quyn va c ng sang lp). Preference of voting will be effective for three years from the issuing date of the business registration certificate ( S u tin cua bo phiu se co hiu lc trong 3 nm k t ngay chng nhn ng ky kinh doanh ). After that, voting preference shares of founding shareholders will be converted into ordinary shares ( Sau iu o, nhng c phiu u ai co quyn biu quyt cua nhng c ng sang lp se c chuyn i vao nhng c phiu thng). However (tuy nhin), ordinary shares are not entitled (c phep) to convert into preference shares. Persons who are entitled to buy dividend preference shares, redeemable preference shares or other types of preference shares will be stipulated in the company charter or decided by the Shareholders General Meeting (Nhng ngi c phep mua c phiu u ai c tc, c phiu u ai co th chuc lai hoc nhng loai khac cua c phn u ai se c qui inh trong Cty ban c quyn hay c quyt inh bi ai hi c ng ). Shareholders of the same type will be given the same rights, interests and obligations (Nhng c ng nh zy se c a cho nhng quyn li, nhng s quan tm, va nhng trach nhim nh zy). A partnership is a business in which two or more people own a company, work together and share the profits or losers on an agreed basis ( Cty hp danh la DN trong 1 hay nhiu hn 1 ngi s hu cty, lam vic cung nhau va chia se nhng li nhun hay mt trn cung 1 c s ng y thng nht ). The partnership should begin with a legal agreement covering the various aspects of the business: how decisions will be made, profits will be shared, disputes will be resolved and how future partners will be admitted to the partnership (Cty hp danh cn phai bt u vi hp ng hp phap bao gm nhiu khia canh cua Cty: nhng quyt inh se c lam ra sao, nhng li nhun se c chia ntn, nhng tranh chp se c giai quyt ntn, va lam th nao i tac tng lai chp nhn vao cty hp danh). Two important items that need to be covered are exactly which assets each partner has to contribute as well as how the partnership can be changed or terminated (2 iu quan trong la cn bao trum chinh xac vi tai san ma thanh vin ong gop tt nh vic lam th nao cty hp danh co th thay i hay hoan thanh ). This agreement is called the articles of co-partnership ( thoa thun nay goi la iu l hp danh). The partnership is not permitted to issue any type of securities and is given legal status from the issuing date of the business registration certificate ( Cty hp danh khng

c phep phat hanh bt ky loai nao cua chng khoan, trai phiu va nhn c t cach phap nhn nao t ngay phat hanh giy chng nhn ng ky kinh doanh). There are some types of partnerships. A general partnership ( thanh vin hp danh) is the partnership formed (hinh thanh) with only general partners. That is, each partner is involved in the day-to-day operations of the business and he bears personal responsibility for the liabilities of the partnership (Nghia la, mi thanh vin c bao gm trong hoat ng hng ngay cua cty va ng ta mang nhng trach nhim ca nhn cho nhng mon n cua cty hp danh). The general partnership is in contrast to a limited partnership which has at least one general partner with unlimited liability and one limited partner with limited liability (Cty hp danh noi chung trai vi nhng hi bun hun vn hu han ma co it nht 1 thanh vin hp danh vi trach nhim v han va 1 thanh vin gop vn vi trach nhim hu han). The limited partnership is not often used for operating retail or service businesses (Hi bun hun vn thng ko c s dung cho s vn hanh ban le hay kinh doanh dich vu). Forming the limited partnership is more complex and formal than that of a general partnership (Vic hinh thanh hi bun hun vn thi phc tap va hinh thc hn cty hp danh). A private enterprise is a business owned and operated by a single person ( DNTN la mt DN c s hu va vn hanh bi 1 ngi ). This single person can start a business by simply purchasing the necessary goods and equipment and opening up a shop ( Ngi nay co th khi nghip DN bng cach n gian la mua hang hoa cn thit va m 1 ca hang). There are very few government and legal regulations to comply with ( Co chinh phu va nhng s iu chinh hp phap rt it ). The private enterprise owner owns all the assets of the business, but he also has to supply all the capital, and his ability to borrow is limited to his personal amount of money and wealth ( Chu nhn cua DNTN s hu tt ca tai san cua DN, nhng ng ta cung phai cung cp tt ca c phn, va kha nng cua ng ta cho s vay mn gii han i vi tin va sc khoe ca nhn ng ta). The owner enjoys his freedom to make decisions about his business, but he alone takes the responsibility for incorrect choises (Chu nhn thich s t do lam nhng quyt inh v DN ng ta, nhng ng ta mt minh chiu ly trach nhim cho nhng s la chon sai lm ). He has the right to keep all the profit of the business (ng ta co quyn gi lai tt ca li nhun cua DN ). However, if he suffers a loss, he still owns all the debts, and his legal liability to pay them may be more than his investment in the business ( Tuy nhin, nu ng ta bi thua l, ng ta phai s hu toan b s n va nhng trach nhim phap ly tra chung nhiu hn s u t cua ng ta trong DN). He must use his personal property to settle the debts of the business if he goes bankrupt (ng ta phai s dung tai san ca nhn giai quyt nhng mon n cua DN nu ng ta pha san ). The private enterprise is not permitted to issue securities (DNTN ko c phep phat hanh nhng chng khoan trai phiu ). One individual is only permitted to establish one private enterprise ( 1 ca nhn chi c phep thit lp 1 DNTN). The four types of legal organizations discussed in this lesson show different strengths and weaknesses (im manh va im yu). The best form for a particular enterprise mainly depends (phu thuc) on its capital requirements and the number of owners.