PRIVATE ENTERPRISE IN

VIETNAM
SNHU19.E2 – GROUP 5
SLIDESMANIA
 GROUP MEMBERS

1.Nguyễn Thanh Huyền 13/10

2.Trần Thuỳ Trang
3.Quan Thị Thuỷ Tiên
4.Vương Thanh Thuỳ
5.Hoàng Minh Ánh
6.Lê Thị Thanh Hoài
7.Trần Phương Thảo
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 CONTENT
1. 2. 3.
What is Private Enterprise? Regulations of the law on Conditions for setting up a
private enterprises private enterprise

4. 5. 6.
Advantages and Disadvantages Types of business can a private Private Enterprise’s law
company be converted to between 2014 and 2020
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 1. WHAT IS PRIVATE ENTERPRISE?
● Definition:
1. A private enterprise is an enterprise owned by an
individual and is solely responsible for all his assets for all
activities of the enterprise.
2. A private enterprise may not issue securities of any kind.
3. Each individual may only establish one private enterprise.
4. It does not entitle a private enterprise to contribute capital
to the establishment or purchase shares or contributed
capital in a partnership, limited liability company, or joint-
stock company.
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 1. WHAT IS PRIVATE ENTERPRISE?
● Characteristics:
1. Private enterprise without legal status.

2. Capital ownership relationship in a private enterprise.

3. Ownership relationship determines management relationship.

4. Profit distribution.

5. The owner of a private business has unlimited liability for all debts incurred during the operation.
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 2. REGULATIONS OF THE LAW ON PRIVATE
ENTERPRISE

Article 189.
Investment Article 190. Article 191. Article 192.
Article 188.
capital of Management Leasing of Sale of a
Private
private of private private private
enterprises
enterprise enterprises enterprises enterprise
owners
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 3. CONDITIONS
A. General conditions
o Business name: Not duplicated, not confusing.
o Head office: Legal, with a clear address.
o Business lines: Guaranteed to be included in the system of national economic professions or specialized laws.
o Capital: Ensuring legal capital for industries requiring legal capital.
o Business owners: Do not violate Article 13 of the Enterprise Law.
B. Specific conditions
o Owned by a single individual.
o Each individual is only allowed to own one private business.
C. Documents to prepare before setting up a private enterprise
o Copy of identity card (copy must not exceed 3 months) of the legal representative of the company.
o Business registration application form.
o Relevant dossiers and papers if there is registration of establishment of enterprises with business conditions.
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 4. ADVANTAGES
4. ADVANTAGES &
& DISADVANTAGES
DISADVANTAGES
Advantages of Sole proprietorship Disadvantages of Sole proprietorship
o Private enterprises have the simplest o No separation between the assets of the owner
organizational structure. and the business.
o Owners of private enterprises have full control o The owner of the private enterprise will be
over the company's business activities and are responsible for all obligations and debts
more flexible in their decisions. incurred.
o Private enterprises easily transfer capital, private o Each individual is only entitled to establish one
enterprise owners can also sublease private private enterprise.
enterprises. o Private enterprises that are limited in their
o Owners of private enterprises pay personal ability to raise capital are not allowed to issue
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income tax right on top of corporate income tax. any type of securities.
o Do not have legal status.
 5. A PRIVATE ENTERPRISE CAN BE CONVERTED
TO
A private enterprise can be converted into a one-member limited liability company or a company under Article 199 of the Law on
Enterprises 2014.
The conversion is done at the private business owner's discretion and must meet the following criteria:
• Business investment is not prohibited for the changed enterprise's recognized business lines.
• When registering a valid converted business, having an enterprise registration file is required.
• A private enterprise's owner must be either the business owner.
• The private enterprise's owner agrees in writing to be personally liable for all unpaid obligations.
• The owner of the private enterprise has a written agreement with the parties to the unliquidated contract about the conversion
limited liability company's receipt and performance of such contracts.
• The private enterprise's owner must commit in writing or have a written agreement with other capital contributors on the
receipt and use of the private enterprise's existing labor.

Is it possible to convert a sole proprietorship into a joint stock company?

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 6. ENTERPRISE LAW BETWEEN 2014
& 2020
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 THANK YOU!
HOPE YOU ALL HAVE A
BEAUTIFUL MORNING!
PRESENTATION BY GROUP 5 – SNHU19.E2
SLIDESMANIA