I. Limited – liability company with one or more members

A limited liability company is a legal entity established by capital contribution which is treated as equity (or charter capital) from its members. A limited liability company is not allowed to issue shares. The total number of members in a limited liability company is restricted to 50 (applied to form of a limited liability company with more than two members). Members of a limited liability company 

the limited liability company within the capital contributed – or undertaken to be contributed - to the company. 

A limited liability company may be established by foreign investors either in one of the two following forms:

  • A 100% foreign-owned enterprise (where all members are foreign investors); or
  • A joint-venture enterprise with at least one Vietnamese investor 

II. Joint-stock company

  • A joint stock company is a legal entity established by its fouding shareholders on the basis of their subscriptionof shares of the joint stock company. The charter capital of a joint stock company is divided into shares and each founding shareholder holds a number of shares corresponding to their subscribed and paid-up shares in the joint stock company.

  • A joint stock company is required to have at least three shareholders (with no maximum number of shareholders). A joint stock company may take the form of either (i) 100% foreign-owned; or (ii) a joint venture between foreign and domestic investors.

III. Partnership

A partnership may be established between two individual managing partners. The managing partners have unlimited liability for all obligations of the partnership. Besides managing partners, a partnership may have contributing obligations of the partnership up to the value of their contributed capital.