Company Formation in Vietnam: A Step-by-Step Guide: Vietnam has become an increasingly attractive destination for foreign investment and business expansion. The process of establishing a company in Vietnam, however, can be complex for foreign investors. This article provides a step-by-step guide to company formation in Vietnam.
Company Formation in Vietnam: A Step-by-Step GuideVietnam has become an increasingly attractive destination for foreign investment and business expansion. The process of establishing a company in Vietnam, however, can be complex for foreign investors. This article provides a step-by-step guide to company formation in Vietnam.
Choosing a Business Structure
The first step is deciding on the business structure. Common options for foreign companies include:
Wholly foreign-owned company (WFOE): 100% foreign owned
Joint venture company: Partnership between foreign and Vietnamese entities
Representative office: Non-trading office representing the business
Each structure has different requirements for investment capital, ownership equity, scope of business activities and reporting. Investors should consult experts to select the appropriate structure.
Obtaining an Investment Registration Certificate (IRC)
To establish a company in Vietnam, the investor must obtain an Investment Registration Certificate (IRC) from the local Department of Planning and Investment (DPI). The IRC application includes:
Proposed investment project
Company registration documents
Legal documents of the investor
Articles of incorporation
It may take 1-3 months to obtain an IRC. The IRC allows the investor to carry out business registration procedures.
Making Capital Contributions
Once obtaining the IRC, the foreign investor must open a capital account at an authorized Vietnamese bank and make capital contributions within 6 months as committed. This capital must be adequate for the registered business activities.
Completing Business Registration
The investor then completes procedures to register the company with regulatory agencies:
Seal registration
Tax registration to obtain tax code
Business registration to gain Enterprise Registration Certificate
Other sector-specific registrations if required
Appointing Legal Representative
A legal representative must be appointed as the authorized contact person to manage daily operations and deal with the authorities. The legal representative must reside in Vietnam.
The entire registration process usually takes 6-8 weeks in Vietnam. Investors must work closely with experts to follow procedures and regulations properly. Thorough preparation of legal documents is vital to ensure successful company formation.
Not sure where to begin?
Mr. To Hong Duc, Regional Business Development
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