What are the things to note when establishing a partnership?

According to Article 130 of the Law on Enterprises, individuals participating in the establishment of a partnership must meet the following conditions:

1. There must be at least two members who are joint owners of the company, doing business together under a common name (hereinafter referred to as general partners); in addition to general partners, there may be capital contributing members;

2. A general partner must be an individual, responsible with all of his/her assets for the company's obligations;

3. Capital contributors are only responsible for the company's debts within the scope of the capital contributed to the company. In addition, individuals participating in the establishment of a partnership company do not fall into the following cases (Clause 2, Article 13 of the Enterprise Law):

a. State agencies and units of the Vietnam People's Armed Forces use state assets to establish businesses to generate profits for their own agencies and units;

b. Cadres and civil servants according to the provisions of law on cadres and civil servants;

c. Officers, non-commissioned officers, professional soldiers, defense workers in agencies and units of the Vietnam People's Army; officers and professional non-commissioned officers in agencies and units of the Vietnam People's Public Security;

d. Executives and managers in 100% state-owned enterprises, except for those appointed as authorized representatives to manage the State's capital contribution in other enterprises;

d. Minors; persons with limited civil act capacity or those who have lost civil act capacity;

e. Persons serving a prison sentence or being prohibited by the Court from doing business;

f. Other cases as prescribed by law on bankruptcy.

Procedures for establishing a partnership:

According to Article 17 of the Enterprise Law, individuals participating in establishing a business must prepare the following documents:

1. Application for business registration in the unified form prescribed by the competent business registration authority.

2. Draft Company Charter.

3. List of members, copies of ID cards, passports or other legal personal identification of each member.

4. Document confirming legal capital from a competent agency or organization for a partnership doing business in an industry or profession that is required by law to have legal capital.

5. Practice certificates of general partners and other individuals for partnerships doing business in industries or professions that require practice certificates according to law.