One person holding two business licenses in his name – it’s dry?

One person holding two business licenses in his name is entirely possible, and this is a flexible option that helps business owners expand their business operations effectively. Owning multiple licenses not only creates opportunities to develop diverse industries but also helps optimize resources and reduce management costs. In the article below, Long Phan will provide complete information on this issue, helping customers clearly understand related rights and obligations.

Regulations on legal representatives of enterprises

According to Article 12 of the Law on Enterprise 2020, the legal representative of an enterprise is an individual who represents the enterprise to exercise the rights and obligations arising from the enterprise’s transactions, representing the enterprise as a person. Request resolution of civil matters, plaintiffs, defendants, people with related rights and obligations before Arbitrators, Courts and other rights and obligations according to the provisions of the law.

A business may have one or more legal representatives. The company charter will specifically stipulate the number, title and powers of each of these representatives. In case there are multiple legal representatives, each person has full authority to represent the business before a third party.

Can one person hold two business licenses in his name?

For businesses

According to the provisions of Article 12 of the Law on Enterprise 2020, an individual can simultaneously assume the role of legal representative for many different companies. Specifically, the Law allows LLCs (Limited Liability Companies) and joint stock companies to have one or more legal representatives. In case the company has many representatives, the company charter will detail the rights, obligations and responsibilities of each representative.

This means that an individual can simultaneously be named as the legal representative on the business licenses of many different limited liability companies and joint stock companies, as long as the Charter of each company clearly states the rights and responsibilities of the legal representative. This is completely legal and is not limited by the provisions of the Law on Enterprise, as long as the division of powers and responsibilities of the representatives is clearly and accurately stipulated in the Charter of each company.

For example: If a person is elected as the legal representative for both companies, they will perform the obligations and rights related to the management and operation of each company in accordance with the content and regulations of the law. Charter of that company. At the same time, if the company has many representatives, each person may have different powers depending on the provisions of the company’s charter.

Therefore, it is completely legal for an individual to be the legal representative for multiple businesses at the same time and there is no prohibition under current law, as long as all terms are clearly stated in the Charters of those companies.

For business households

According to the provisions of Article 80 of Decree 01/2021/ND-CP, for the form of business households, each individual is only allowed to register a single business household nationwide. This means that an individual cannot have his name on two business licenses in the form of a household business, even in different localities.

In case an individual wants to expand their business activities into different fields or open multiple businesses, they will not be able to do this through the form of household business. Instead, this individual will have to choose to establish separate businesses with other legal forms, such as LLCs (Limited Liability) or joint stock companies. This helps meet the need to expand and diversify business activities while still complying with legal regulations.

Cases where there is no right to name and establish a business

The Law on Enterprise 2020 also stipulates that a number of subjects do not have the right to establish and manage businesses in Vietnam, including:

• State agencies and units of the people’s armed forces use state assets to establish business enterprises to make their own profits;
• Officials, civil servants and public employees;
• Officers, non-commissioned officers, professional soldiers, workers, and defense officials in agencies and units of the Vietnam People’s Army; officers, professional non-commissioned officers, and police workers in agencies and units under the People’s Public Security of Vietnam, except those appointed as authorized representatives to manage the State’s capital contribution in the enterprise, or management at state-owned enterprises;
• Leaders and professional managers in state-owned enterprises, except those appointed as authorized representatives to manage the State’s capital contribution in other enterprises;
• Minors; people with limited civil act capacity; people who have lost their civil act capacity; people with difficulty in cognition and behavior control; organizations without legal status;
• People who are being prosecuted for criminal liability, are detained, are serving prison sentences, are serving administrative measures at compulsory detoxification facilities, compulsory education establishments or are being banned by the Court holding positions, prohibiting practicing certain professions or doing certain jobs; Other cases as prescribed by the Law on Bankruptcy and the Anti-Corruption Law;
• Organizations are commercial legal entities prohibited from doing business or operating in certain fields.

Consulting service for one person to be responsible for 2 business licenses

At Long Phan, we have a team of experienced experts in the field of consulting and business support. Long Phan is committed to providing customers with effective and fast service.

The services we provide include:

• Support customers to carry out legal representative registration activities;
• Consulting on building a business charter that best suits your situation;
• Support to answer questions throughout the consulting and support process;
• In-depth advice on the rights and obligations of the legal representative of the enterprise according to current regulations.

The fact that one person holds two business licenses in his name is allowed by law, as long as the prescribed conditions are met. However, to ensure business operations comply with the law, customers should consult experts. Please contact Long Phan immediately via the hotline: 0906735386 for quick, professional support. We are always ready to accompany you on your business development journey!