COMPARISON OF TYPES OF BUSSINESS ENTITY BETWEEN VIETNEM AND SINGAPORE

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Vietnam enterprises shall be founded on the provisions of the Enterprise Law 2014, which has four specific business type and every type has specified structure and different ways to operate: Joint Stock Company (JSC), Limited Liability Company, Partnership and Sole Proprietorships. This article wants to put these kinds of enterprises of Vietnam next to Singapore, a developed country, to more complete law on enterprise.

Source law governing the types of businesses in Singapore are: Partnership Act 1980 and the Companies Act, Business Registration Act, Security Act. According to legal documents on the Singapore, those shall offer the following types of business:

- Sole Proprietorships

- Partnerships

- Company

You can see the type of enterprise in Vietnam and Singapore are quite similar, so let us find out how different they are:

1) Sole Proprietorships:

In essence, sole proprietorship in the Vietnam and Singapore is the same: The assets of sole proprietorship is no separation of the assets of the owner and the owner reserves the right to dispose of his business, is entitled to the entire profits and to bring all of his assets to be responsible for their own business operations. It is noted that when participating in economic, civil, commercial relations, the sole proprietorships in Singapore are treated as persons, so no separate regulations for the owners.

The sole difference between Vietnam and Singapore regulation is that Singapore allows both individuals and legal entities to establish sole proprietorship.

2) Partnership:

	Singapore	Vietnam
Definition	A partnership is an agreement between those who conduct business in order to profit or may be understood as link of business	As a company registered under the procedure provided for agency
Established procedures	Not necessarily register in state agencies having jurisdiction. May set up through an agreement or when starting business behavior. If you want to register, contact the Registration Department.	Forced to conduct business establishment procedures prescribed by the Law on Enterprises in 2014. Department of Planning and Investment is responsible for managing this procedure.
Legal status	No	Yes
Number of members	From 2 to 20	At least 2 members of the partners and not limit the number of limited partners
Liability for debt	Take joint responsibility for partnership’s operation	Take joint responsibility for paying the remaining debts of the company if the company’s assets are not sufficient to pay all its debts
Asset	Asset may be Partnership’s or member’s	The assets of a partnership and the property of each member is separated.

3) Company:

Singapore Company Law divided companies into 2 types: private company and public company.

We can put them next to Vietnam joint-stock company for comparison:

	Singapore private company	Singapore public company	Vietnam joint stock company
Number of members	Maximum is 50	Unrestricted	The minimum quantity of shareholders is 03; the maximum quantity is not restricted.
Securities issuance	Not to issue shares and bonds to the public debt	Issue stock to raise capital and take deposits from the public	Share and bond issuance
Transfer share	Restricted	Unrestricted	Free to transfer his share but in first 03 years, can not without General Meeting of Shareholders
Director	At least two directors and one of them must have permanent residence in Singapore		The Board of Directors shall appoint one of them as or hire a Director
Secretary	Must have at least one secretary who regularly resides in Singapore		Not prescribe
Stock	Include equity share and preferential share		Ordinary share,  share with preferred dividends, Redeemable preferred shares and Voting preference shares
Capital	Include: authorized capital, issued capital and paid-up capital		Authorized capital