The procedure for establishing a partnership company requires strict compliance with the legal regulations stipulated in the Enterprise Law. This process includes many complicated steps, from preparing documents to registering a business. To help entrepreneurs understand the process and specific requirements, ADVN LAW would like to introduce in detail the necessary procedures and conditions for establishing a partnership company in the following article.
The procedure for establishing a partnership company requires strict compliance with the legal regulations stipulated in the Enterprise Law. This process includes many complicated steps, from preparing documents to registering a business. To help entrepreneurs understand the process and specific requirements, ADVN LAW would like to introduce in detail the necessary procedures and conditions for establishing a partnership company in the following article.
2.1 What is a partnership company?
A partnership company is a type of enterprise established by at least two individuals or organizations, contributing capital and conducting business under a common name. Members of a partnership company have unlimited liability for the financial obligations and debts of the company. A partnership has legal status when the members have contributed enough capital according to the initial commitment and are granted a Certificate of Business Registration.
2.2 Advantages and disadvantages of a partnership
Advantages:
- Simple organizational structure: A partnership has a compact organizational structure, making management easy and flexible.
- Creating high reliability: Members are unlimitedly responsible for all their assets, creating great trust with partners and customers.
- Good borrowing ability: Thanks to unlimited liability, partnerships are often easier to access loans and extend debt.
- Effective management: With a small and familiar number of members, business management becomes simple and effective.
Disadvantages:
- High risk: The risk level for members is high because they are unlimitedly responsible for debts and obligations arising from business activities.
- Limitations on capital mobilization: A partnership cannot issue shares or securities, which limits the mobilization of capital from outside.
- Joint liability: A member who withdraws from the company is still responsible for obligations arising before the withdrawal date.
- Common limitations: The number of partnerships in Vietnam is currently relatively small, due to high risks and legal responsibilities.
Step 1: Prepare and submit documents
Members need to prepare documents including: application for business registration, draft company charter, list of members, copies of citizen identification cards (CCCD), identity cards (CMND) or passports of members, investment registration certificate (if any), power of attorney (if necessary). Documents can be submitted directly to the business registration agency or through the online registration system. Within 03 working days, the business registration authority will review and issue the Business Registration Certificate if the dossier is valid.
Step 2: Announce the business registration content
The enterprise must announce relevant information on the National Business Registration Information Portal within 30 days from the date of issuance of the Business Registration Certificate. If not done on time, the enterprise may be subject to administrative sanctions.
Step 3: Carve the legal seal
After receiving the Business Registration Certificate, the partnership needs to carve the legal seal within 1-2 working days. The seal must fully display the name and business code.
Step 4: Notify the seal sample
The enterprise needs to notify the seal sample to the Business Registration Office for confirmation and record keeping.
Step 5: Receive the Business Registration Certificate
After completing the above steps, the enterprise will receive the Business Registration Certificate along with the company's seal and round seal sample.
Step 6: Complete the post-registration procedures
The post-registration procedures include: hanging a sign at the head office, notifying the tax calculation method to the tax authority, opening a bank account, registering a digital signature and ordering the printing of invoices. These steps ensure that the enterprise can operate legally and effectively.
4.1 Register online using a digital signature
The steps include: preparing documents, creating an account on the online registration system, scanning and digitally signing documents, submitting documents online, and receiving the Business Registration Certificate online or directly at the business registration office.
4.2 Register online with a business account
Members access the business registration website, log in to their account, fill in all business information according to the instructions, check and correct errors if necessary, then pay the online registration fee. The business registration certificate will be sent by post or received directly at the business registration office.
Establishing a partnership requires legal knowledge and strict compliance with procedures. Using ADVN LAW's business establishment consulting and support services will help you save time, minimize risks and ensure that procedures are carried out in accordance with the law. We are always ready to accompany you in the process of starting and developing a partnership. Contact ADVN LAW now to receive the best advice and support.
If you need more information or support, please contact ADVN LAW for detailed advice.
- Address: F2&F3, No. 2 Phung Khac Khoan, Da Kao Ward, District 1, Ho Chi Minh City
- Phone: 0903.693.301 – 0909.393.329
- Email: vanphongluatsuadvn@gmail.com; advnlaw@gmail.com
