Partnership

A partnership is an enterprise which:

• Has at least two general partners; in addition to general partners, there may be
capital contributors;
• General partners must be individuals, have professional qualifications and
professional reputation, and be responsible with all their assets for the
company's obligations;
• Capital contributors are only responsible for the company's debts to the extent
of the capital contributed to the company.
• A partnership has legal status from the date of issuance of the Certificate of
Business Registration.

General partners have the right to manage the company, conduct business activities
on behalf of the company, and are jointly responsible for the obligations of the
company. Capital-contributing members have the right to share profits according to
the ratio specified in the company's charter, and do not participate in company
management and business activities on behalf of the company. General partners have
equal rights when it comes to make decision on management issues.

Advantages and disadvantages of a partnership

Advantages
The management and operation of a partnership is not too complicated due to the
small number of members, most of whom are well-known and reputable, and have
absolute trust in each other;
The general partners must be responsible with all their assets for the business
activities of the company, so this type of business can easily create the trust among
customers and business partners.

Disadvantages
Due to being responsible with all their assets for the company's obligations, the risks
of general partners are very high. This is why partnership is not common;
The company is not allowed to issue shares to raise capital.
Although this type of business enjoys high trust from customers and partners,
because of the high risk for general partners, there are not many partnerships in
Vietnam.