What is a private enterprise?
A private enterprise is an enterprise owned by an individual who is personally responsible for all activities of the enterprise with all of his/her assets. The sole owner of a private enterprise is an individual. A private enterprise does not have legal status .
The owner of a private enterprise is the legal representative of the enterprise. The owner of a private enterprise has full authority to decide on all business activities of the enterprise; has full authority to decide on the use of profits after paying taxes and fulfilling other financial obligations as prescribed by law. The owner of a private enterprise can directly or hire someone else to manage and operate the business activities.
In case of hiring another person as the Director of the enterprise, the owner of the private enterprise is still responsible for all business activities of the enterprise. As the sole owner of the enterprise, the private enterprise is completely proactive in deciding on issues related to the business activities of the Enterprise.
The unlimited liability regime of private business owners creates trust for partners and customers and helps businesses to be less tightly bound by the law than other types of businesses .
However, because there is no legal status, the risk level of the private business owner is high. The private business owner must be responsible for all the assets of the business and the business owner, not limited to the capital that the business owner has invested in the business.
**Note: An individual cannot establish multiple private enterprises. Because a private enterprise is an enterprise owned by an individual and must bear unlimited responsibility for the company's debts. Thus, if an individual already bears unlimited responsibility and establishes multiple other enterprises, the private enterprise itself no longer has the meaning of "unlimited responsibility".
Conditions for establishing a private enterprise
1. The business line is not prohibited by law.
2. The business name is set in accordance with the provisions of Article 24 of the Law on Enterprises.
3. There is a valid business registration dossier in accordance with the provisions of Article 24 of the Law on Enterprises.
4. The business registration fee is fully paid as prescribed.
5. The investor does not violate Articles 9 and 10 of the Law on Enterprises.
Business registration procedures
According to Article 12 of the Law on Enterprises, the business founder must prepare and submit a complete business registration dossier. According to the provisions below, at the business registration agency under the People's Committee of the province or centrally-run city where the business has its head office and must be responsible for the accuracy and truthfulness of the business registration content.
Business registration is completed within 15 days from the date the business registration authority receives the complete application. If the business registration is refused, the business registration authority must notify in writing, stating the reasons.
For conditional business lines : Enterprises are entitled to conduct business from the date of being granted a business license by a competent state agency or meeting the business conditions prescribed by law. Specifically:
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For private enterprises operating in industries and professions that require legal capital, there must be additional confirmation from a competent authority or a legal certificate proving the enterprise's capital.
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For private enterprises operating in industries and professions requiring a practice certificate, there must be an additional valid copy of the practice certificate of the private enterprise owner or enterprise manager.
Private company establishment profile
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Business registration application;
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A valid copy of one of the private business owner's legal identification documents.
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Document confirming legal capital from a competent agency or organization for enterprises operating in industries or professions that are required by law to have legal capital;
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A valid copy of the practice certificate of one or several individuals as prescribed for private enterprises operating in industries and professions that are required by law to have a practice certificate.
Our legal services
1. Free consultation for customers on issues related to the establishment of private companies such as:
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Consulting on legal regulations on company establishment ;
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Consulting on Business Organizational Structure and Model;
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Consulting on Operation and Management Methods;
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Legal advice on the relationship between management positions;
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Consulting on Rights and obligations of members;
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Consulting on capital contribution ratio and method;
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Consulting on profit sharing plan and handling arising obligations;
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Consulting Other related content.
2. Check and evaluate the legality of customer's consulting requests and documents:
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Based on the requirements and documents provided by the client, our lawyers will analyze and evaluate the legality and suitability with the requirements for performing the work;
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In case the client needs a lawyer to participate in negotiations, meet and discuss with the client's partners in establishing a private company , we will arrange and ensure participation according to requirements;
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We represent clients in translating and notarizing relevant documents.
3. HLA will represent the client to complete the procedures for establishing a private company, specifically:
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After signing the service contract, HLA will prepare the application for establishing a private company for the customer;
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Representative to the Department of Planning and Investment to submit the application for establishment of a private company for the client;
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Representative to monitor the records and responses of the Department of Planning and Investment, notify the results of submitted records to customers;
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The representative receives the result as the Business Registration Certificate at the Department of Planning and Investment for the customer;
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Carry out procedures for engraving seals for Enterprises;
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Carry out procedures for registering Tax Code and Customs Code for Enterprises.
4. After-sales service for customers:
In addition to the above preferential services, after terminating the service contract, HLA will continue to support customers with some preferential services such as:
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Consulting on drafting company regulations;
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Free consultation via hotline ;
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10% off your next service.
Please contact HLA for free consultation and the best legal consulting services!
Who Henry Lincoln Advisory?
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Expert Team: Our professionals bring deep expertise across industries and regions.
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Comprehensive Approach: From accounting to advanced AI solutions, we cover every aspect of modern business needs.
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Scalable Solutions: Our services adapt as your business grows, ensuring continuous support and improvement.
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Focus on APAC: Specialized in providing solutions across the Asia-Pacific region with a strong emphasis on compliance and sustainability.
Our Services
We proudly offer a range of cutting-edge online business solutions, tailored to meet the dynamic needs of organizations in the Asia-Pacific (APAC) region. From accounting to sustainability, technology, and digital transformation, we are here to support your business growth and success.
1. Incorporate
2. Accounting
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Service: Chief Accountant Services
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Steps:
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Assess the company's current financial and accounting situation.
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Set up a transparent accounting system compliant with regulations.
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Provide periodic financial reports and cost management advice.
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Outcome: Ensures regulatory compliance, improves cash flow, and increases financial transparency.
3. Auditing
4. Appraising
5. Aucting
6. Financing
7. Logistics
Add more, HLA have component for client:
1. Chief Accounting Online
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Tax & Accounting Book Services Online: Simplify your financial management with professional online bookkeeping and tax declaration services.
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Custom Landing Pages: User-friendly platforms to ensure smooth communication and task execution.
2. CFO Advice Online
3. ESG (Environmental, Social, Governance) Services
4. Hub Business Services in APAC
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Centralized solutions for businesses operating across the APAC region, ensuring compliance, efficiency, and seamless integration.
5. Sustainable Business Practices
6. Big Data Solutions
7. Generative AI and Automation
8. Digital Transformation
9. Software Solutions
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Expertise in essential business software including FICO, CRM, CPD, and SaaS, tailored to meet your specific needs.
Contact Us
Take the hassle out of tax and accounting. Let us handle the numbers while you focus on growing your business!