DIFFERENCE BETWEEN THE RIGHT TO ESTABLISH, MANAGE ENTERPRISE AND RIGHT TO CONTRIBUTE CAPITAL

Source: shareyouressays.com

The right to establish and manage enterprises in Vietnam and the right to contribute capital are different. There are cases where right of contribution will naturally give rise to management companies but in many cases, contributing capital case does not give rise to right to  manage.

However, many cases the right to establish businesses and to contribute are usually lumped together as one.

Therefore, this article will help you understand, how the right to establish and manage enterprises in Vietnam and how the right to contribute capital to the enterprise, any case not be established and not contribute capital

Right to establish and mange enterprise

A legislated right of freedom from human trading are recognized in the Constitution 2013, in which subjects shall be recognized in terms of the law and has the right to conduct business registration under the protection of the law. From here, the business has a solid legal basis to request state guarantees their legitimate rights for assured business.

The right to establish businesses is often associated with right of management because people establishing company have the right to decide the policies to ensure the survival and development of these enterprises.

Right to contribute capital:

It is also a right of freedom from human trading are recognized in the Constitution 2013, however, the authorities have limited capital contribution than the right to establish, manage businesses, such as contributor only has the right to receive income only after the companies have to pay taxes, to pay the debts ... without the power to regulate, manage businesses, and businesses who contribute capital to bear only limited liability to the extent of capital contribution mine

- The cases in which you do not have the right to establish and manage enterprise.

According to Paragraph 2 of Article 18 of the Law on Enterprises 2014, there are  3 groups that are not entitled to establish and manage businesses:

Group 1: Subjects working in state agencies

Group 2: Subjects with civil act capacity restricted

Group 3: Subjects are suffering adverse legal consequences due to violations of laws

- The cases are not entitled to contribute capital to the DN

Paragraph 3 of Article 18 of the Law on Enterprises 2014 prescribes 2 cases that are not entitled to contribute capital to purchase shares, buy the share in joint-stock companies, limited liability companies, partnerships:

1. Government agencies, armed force units using state-owned property to establish enterprises for self-seeking purposes;

2. The entities banned prohibited from contributing capital to enterprises as prescribed by regulations of law on officials and civil servants.