Posted 19.01. 2021 by Cekindo
Forming a partnership in Vietnam is a popular business structure option for foreign investors and business owners. A partnership is a company that must have a minimum of two joint owners, and both of them conduct business activities under one business name.
There are two types of partnership in Vietnam: general partnership and limited partnership. General partners must be individuals. A general partnership means that without the agreement of other general partners, a general partner cannot be a general partner of another company, an owner of a private company, or an owner of a home business.
Partners under this company hold financial liability such as partnership’s debts and capital contribution as for limited partnerships.
You may form a general partnership or a limited partnership in Vietnam, given that you fulfill the following requirements:
Legal and Valid Identification Documents of Partners
1. For Vietnamese citizens
2. For foreigners
Rules of Naming a Partnership
It is compulsory that all partnerships in Vietnam to have a name, and the naming must comply with Government Decree 88/2006/ND-CP. Under this law, a partnership’s name must not be the same as other companies conducting activities in the same business sector and the same city or province.
Limited partners are financially liable for the partnership’s debt and capital contribution, and general partners hold financial liability for the partnership’s obligations and other business liabilities with all their personal assets (property, land, cars, cash, investment, etc.). Therefore, if the partnership fails, general partners need to use their personal assets to pay the partnership debts and liabilities.
There are certain restrictions when it comes to a general partnership as well. For instance, general partners are restricted from conducting business activities for their benefits or other partners’ benefits. Also, a general partner is not allowed to transfer any of their capital contribution to other partners.
However, there are no restrictions on the number of business locations for a partnership in Vietnam. Branch offices or representative offices are also permitted if the partnership company registers its branches and representative offices legally.
Vietnam is a crucial destination for foreign individuals and companies looking for additional profits and long-term growth. Therefore, forming a partnership in Vietnam with the support from Cekindo can help you unlock potential business opportunities minus the associated risks.
To the extent that you are thinking of conducting your business in partnership in Vietnam, Cekindo’s legal experts can advise on structure and partnership issues and assist you in drafting proper documents.
Fill in the form below now.