How to register a company in Vietnam as a Foreigners conducted by investors has always been subject to quite rigorous adjustments of investment and business laws.
Then, the investment registration authority must issue the investment registration certificate to the investor within 15 business days upon the receipt of the valid application. The items stated below are the details of company registration procedure in Vietnam
If your company is less than 51% owned by a foreigner and is therefore considered a local company, you no longer need to get an IRC. You can go straight to registering your business in Vietnam and obtain your Business Registration Certificate (BRC). Having a local company significantly reduces your registration period.
In order to operate a foreign company in Vietnam with 100% ownership, you will need to acquire two certificates from relevant authorities: investment registration certificate and enterprise registration certificate. In this article, Cekindo will provide you with some legal insights into obtaining the certificates.
Foreign ownership is allowed in Vietnam. Added to this, an LLC is the most prominent business structure utilised in Vietnam. There are different forms of government incentives offered in Vietnam.
There are no minimum capital requirements for company registration in Vietnam. However, there are different business structures which are established in Vietnam. These businesses would require different amount of capital as per the requirements. For example, for starting a company in a free trade zone in Vietnam, the minimum capital which has to be invested is USD 200000.
Yes ! foreign investment is allowed in Vietnam. An investment registration certificate has to be signed by the investor before investing in Vietnam.
Certainly! As a foreigner, you can start a business in Vietnam through direct or indirect foreign investments. Here are the key points:
Direct Foreign Investment:
In this approach, you collaborate with a Vietnamese partner to establish either a 100% foreign-owned company or a joint venture.
To obtain direct investment in Vietnam, you’ll need an enterprise license and must follow legal procedures according to local law1.
Indirect Foreign Investment:
This involves purchasing shares of existing companies in Vietnam.
The level of your involvement in company management depends on the agreement between you and the Vietnamese company.
Restrictions and Considerations:
Certain business activities are restricted for foreigners in Vietnam. For example, you cannot engage in businesses related to narcotic substances, toxic chemicals, endangered wildlife, prostitution, human trafficking, or debt collection.
The Law on Investment 2021 introduced new “conditional business investment” activities. While not restricted, these activities require meeting specific criteria to access the Vietnamese market.
Examples of “conditional business investments” include accounting services, customs-related businesses, securities-related services, and more1.
Remember that a 100% Foreign Invested Enterprise in Vietnam can only take the form of a Limited Liability Company (LLC) or a Joint Stock Company (JSC)2. If you’re considering starting a business in Vietnam, it’s essential to understand the legal requirements and seek professional advice to navigate the process successfully. Good luck with your business venture! ???
Certainly! The cost of opening a company in Vietnam can vary based on several factors, but I’ll provide you with an estimate. Keep in mind that these figures are approximate and subject to change. Here’s a breakdown of the costs:
Business Address: To register a company in Vietnam, you’ll need a business address. If you don’t require a physical location immediately, you can use a virtual address for registration. The average price for a virtual business address package starts at around $80 per month or $970 per year. However, if your business needs a physical location (e.g., office space, retail shop, etc.), leasing costs will vary based on the city and property type1.
Company Registration Service Fee: You’ll need legal assistance to navigate the process. Lawyers can help you choose the right business structure, advise on market entry conditions, and draft contracts. The service fee for company registration typically starts at $1,5001.
Initial Set-Up Costs: These include purchasing a USB token device, getting a company signboard, and registering for VAT e-invoices. The total cost for these initial set-up works is approximately $2701.
Accounting and Audit: You’ll need bookkeeping services and annual audit. The cost for bookkeeping and filing tax reports for one year, along with the annual audit, is around $1,6401.
Total Minimum Cost for the First Year: Adding up the above expenses, the minimum cost to start a business in Vietnam for the first year of operation is approximately $4,3801.
Remember that these figures are estimates, and actual costs may vary based on your specific circumstances. Always consult with legal professionals and consider other optional startup fees as well1. Good luck with your business venture! ?
Tax: 20%
Corporate Income Tax in Vietnam
Domestic investors and foreign investors may invest in the form of 100% of their own capital to establish limited liability companies, joint-stock companies, partnerships or private enterprises under the provisions of the Enterprise Law and relevant laws.
Yes, Foreigners seeking to open a business in Vietnam can opt for one of two legal entities: a Limited Liability Company (LLC) or a Joint-Stock Company (JSC). An LLC can be formed with just one or two shareholders, whereas a JSC mandates a minimum of three shareholders. LHD Law Firm can help foreigners Set up company in Vietnam.
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