For a single-member LLC, the owner's rights are stipulated in paragraph 1 Article 76 of the Law on Enterprises 2020 as follows:
1. Rights of the owner as an organization:
- Decide on the content of the Company Charter, amend and supplement the Company Charter;
- Decide on the company's development strategy and annual business plan;
- Decide on the company's management structure, appoint, dismiss, and remove the company's managers and controllers;
- Decision on investment development project;
- Decide on market development, marketing and technology solutions;
- Through loan, lending, asset sale contracts and other contracts as prescribed by the Company Charter with a value of 50% or more of the total asset value recorded in the Company's most recent financial report or a smaller ratio or value as prescribed in the Company Charter;
- Through the company's financial statements;
- Decision to increase the company's charter capital; transfer part or all of the company's charter capital to other organizations or individuals; decision to issue bonds;
- Decision to establish a subsidiary, contribute capital to another company;
- Organize monitoring and evaluation of the company's business activities;
- Decide on the use of profits after completing tax obligations and other financial obligations of the company;
- Decision to reorganize, dissolve and request bankruptcy of the company;
- Recover the entire value of the company's assets after the company completes dissolution or bankruptcy;
- Other rights as prescribed by this Law and the Company Charter.
2. Ownership rights are individuals:
The owner of a company is an individual with the rights specified in the points a, h, l, m, n and o Clause 1, Article 76 of the Enterprise Law 2020:
- Decide on the content of the Company Charter, amend and supplement the Company Charter;
- Decision to increase the company's charter capital; transfer part or all of the company's charter capital to other organizations or individuals; decision to issue bonds;
- Decision to reorganize, dissolve and request bankruptcy of the company;
- Recover the entire value of the company's assets after the company completes dissolution or bankruptcy;
- Other rights as prescribed by this Law and the Company Charter.
3. Obligations of the owner of a single-member LLC
As prescribed in Article 77 Enterprise Law 2020, the obligations of the owner of a single-member LLC include:
- Contribute fully and on time the company's charter capital;
- Comply with the Company Charter;
- Identify and clearly distinguish the personal assets of the company owner from the assets of the company. If the owner is an individual, personal and family expenses must be separated from the expenses of the company Chairman, Director or General Director;
- Fully comply with the provisions of law relating to contracts and other provisions relating to sales, borrowing, debt collection, lending, renting, leasing, and other transactions between the company and the company owner;
- The company owner has the right to withdraw capital only through the transfer of part or all of the charter capital to another organization or individual. In case of withdrawing part or all of the contributed charter capital from the company in another form, the company owner and related individuals and organizations shall be jointly liable for the company's property obligations and debts arising;
- The company owner is not entitled to profit if the company fails to fully pay its debts and other property obligations when due;
- Other obligations as prescribed by the Enterprise Law 2020 and the Company Charter.
In addition, the owner of a single-member LLC is obliged to contribute the full amount and the correct type of assets as committed when registering to establish the enterprise within 90 days from the date of receiving the Enterprise Registration Certificate. In case of failure to contribute the full charter capital within that 90-day period, the owner of the single-member LLC must register to adjust the charter capital with a value equal to the actual contributed capital within 30 days from the last day of fully contributing the charter capital. The owner of a single-member LLC is obliged to manage and operate the company, ensure smooth business operations and comply with legal regulations. They also need to contribute capital according to the commitment registered in the company establishment dossier.
In short, the owner in a single-member LLC has the right to control and participate in management, benefit from profits, but also has the obligation to contribute capital, comply with the law and participate in the company's management process.
