HOW MANY JOINT STOCK COMPANIES CAN A PERSON ESTABLISH?

In the process of production and business, many people need to establish many different companies. So is one person allowed to establish multiple joint stock companies?

I. What is a joint-stock company?

According to Clause 1, Article 111 of the Law on Enterprise 2020, a joint-stock company is an enterprise, in which:

(i) The charter capital is divided into equal parts called shares;

(ii) Shareholders have the right to freely transfer their shares to others, except for the cases specified in Clause 3, Article 120 and Clause 1, Article 127 of the Enterprise Law 2020;

(iii) Shareholders are only liable for debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise;

(iv) Shareholders may be organizations or individuals; The minimum number of shareholders is 03 and there is no limit to the maximum number.

Thus, a joint-stock company is a type of company with the outstanding feature that the charter capital is divided into equal parts and called shares. Holders of company shares are shareholders and are only responsible for debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise.

II. How many joint stock companies can one person establish?

Firstly, pursuant to Article 17 of the Enterprise Law 2020, organizations or individuals have the right to establish enterprises and manage enterprises in Vietnam in accordance with the current enterprise law, except for organizations, individuals belonging to the subjects specified in Clause 2, Article 17 of the 2020 Law on Enterprises on subjects not allowed to establish and manage enterprises.

Secondly, the current Enterprise Law 2020 does not provide for restrictions on the establishment, management or capital contribution of individuals when establishing, managing or being a member of a one-member limited liability company, a limited liability company with two or more members, joint stock company. Accordingly, an individual can be established multiple joint stock companies. In the process of production and business, many people need to establish many different companies. However, many people still wonder if one person is allowed to start multiple companies.