A private enterprise is an enterprise owned by an individual and is solely responsible for all of its activities. Therefore, the owner of a private enterprise has full authority to decide all business activities of the enterprise, specifically:
Firstly, the decision on investment capital:
– Investment capital of the owner of a private enterprise is registered by the owner himself.
+ Business owners have the right to increase or decrease their invested capital in their business activities during its operation.
+ Owners of private enterprises may only reduce capital after registering with business registration offices in cases where their investment capital is reduced to lower than the registered capital. The increase or decrease of investment capital of the enterprise owner must be fully recorded in the accounting book.
+ When increasing charter capital, owners of private enterprises will have to invest additional capital.
Secondly, decisions on enterprise management and administration:
Article 185 of the 2014 Enterprise Law provides that a private enterprise owner has the following management rights:
– The owner of a private enterprise has full authority to decide all business activities of the enterprise, the use of profits after paying taxes and fulfill other financial obligations in accordance with the law.
– Owners of private enterprises may directly or hire other people to manage and run business activities. In case of hiring another person to be the enterprise management director, it is still responsible for all business activities of the enterprise.
– The owner of a private enterprise is the plaintiff, defendant or person with interests and obligations related to arbitration or court in disputes related to the enterprise.
– The owner of a private enterprise is the legal representative of the enterprise.
Thirdly, the right to lease enterprises:
The owner of a private enterprise may lease the whole of his enterprise but must notify in writing with a notarized copy of the lease to the business registration authority or tax authority within 03 working days. work, from the effective date of the lease contract. During the lease term, the owner of the private enterprise is still legally responsible as the business owner. The rights and responsibilities of the owner and the lessee for the business activities of the enterprise are specified in the lease contract.
Fourthly, the right to sell enterprises:
Private business owners have the right to sell their businesses to others.
After selling the enterprise, the owner of the private enterprise is still responsible for the debts and other property obligations of the business arising in the period prior to the date of transfer of the enterprise, except where the buyer, the seller and The creditors of the enterprises have other agreements.
Seller, buyer must comply with regulations of law on labor.
Enterprise buyers must register for change of private enterprise owner according to regulations.