Types of enterprises

According to the Law on Enterprises, there are following types of enterprises:
(i) Limited Liability Company (LLC): An LLC can be a multiple-member LLC or a single-member LLC.
- A multiple-member LLC means an enterprise with 2 to 50 members (capital contributing members) who may be institutional or individual. A member’s liability for the enterprise’s debts and other liabilities shall be equal to the amount of capital that member contributed to the enterprise. The company is not entitled to issue shares unless it is converted into a joint stock company.
- A single-member LLC is an enterprise owned by a single organization or individual. The owner’s liability for the company’s debts and other liabilities shall be equal to the company’s charter capital. The company is not entitled to issue shares unless it is converted into a joint stock company.
(ii) Joint stock company is an enterprise in which the charter capital is divided into units of equal value called shares; Shareholders can be organizations and individuals; the minimum number of shareholders is three and there is no limit on the maximum number of shareholders. A shareholder’s liability for the company’s debts and liabilities is equal to the amount of capital contributed to the company by the shareholder. The joint stock company may issue shares, bonds and other kinds of securities.
(iii) A partnership is an enterprise in which at least 2 partners are joint owners of the company and do business together under the same name (“general partners”). There can be limited partners in addition to general partners. A general partner must be an individual whose liability for the company’s obligations is equal to all of his/her assets; A limited partner can be an organization or an individual whose liability for the company’s debts is equal to the promised capital contribution. The partnership may not issue any kind of securities.
(iv) A private enterprise is an enterprise owned by an individual and responsible with all of his/ her assets for all activities of the enterprise. Private enterprises are not allowed to issue any kind of securities. One individual is entitled to set up only one private enterprise.