What is a partnership? Characteristics of a partnership?

1. Concept of partnership?

Pursuant to Clause 1, Article 177 of the 2020 Enterprise Law, the concept of a partnership is stipulated as follows:

A partnership is an enterprise in which:

+ There must be at least 02 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, the company may have additional capital contributing members;

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

+ Capital contributors are organizations and individuals and are only responsible for the company's debts within the scope of the capital committed to contribute to the company.

2. Characteristics of a partnership?

Pursuant to Article 177 of the 2020 Enterprise Law, a partnership includes the following basic characteristics:

+ Minimum number of members is 2

+ General partners must be responsible with all their assets for the company's obligations.

+ Capital contributors are only responsible for the company's debts within the scope of the capital contributed to the company.

+ Has legal status from the date of being granted a business registration certificate

+ Partnerships are not allowed to issue securities.

3. Concept of General Partner?

Pursuant to Clause 1, Article 177 of the 2020 Enterprise Law, a general partner is stipulated as follows:

+ As an individual

+ Must be responsible with all of his/her assets for the company's obligations.

+ Has the right to represent the company legally and organize daily business operations.