How to start a business in Vietnam as a foreigner, While Vietnamese startup companies go to other countries for starting their businesses, there are also various people from many different countries, choosing different types of businesses that have successfully established their businesses in Vietnam. However, how to start a business in Vietnam as a foreigner is still a big question for many startup companies.
A foreign investor (just like a local investor) may select one of the following Vietnamese legal entities to carry out a project:
The standard Vietnam corporate income tax (CIT) rate is 20%, though enterprises operating in the oil and gas sectors will be subject to rates between 32% and 50%;
Dividends paid by a Vietnamese company to its corporate shareholders will be completely tax exempt. Furthermore, no withholding tax will be imposed on dividends remitted to overseas corporate shareholders. For individual shareholders, the withholding tax will be 5%;
Interest payments and royalties paid to non-residents individuals or corporate entities will be subject to withholding tax of 5% and 10% respectively;
Personal income tax for residents is levied under a progressive system, ranging between 5% and 35%. However, for non-resident individuals, the tax is levied at a flat rate of 20%.
Yes, a company in Vietnam can be 100% foreign-owned in selected sectors.
Yes. As stated in Circular No: 23/2014/TT-NHNN and Circular No. 32/2016/TT-NHNN, a foreigner is considered eligible to open a bank account in Vietnam if they are permitted to stay in Vietnam and can provide the required documents:
The required documents to open a bank account in Vietnam may vary according to the bank, but will typically include:
The process to register a company involves 5 steps.
This is the standard process to register a company to operate any type of business in Vietnam. After this, depending on the nature of the business, the entity may or may not require additional sub licenses.
Foreigners are allowed to register their company in Vietnam for starting a business.
In most industries, they can own 100% of the shares of their business. In a few selected industries, company registration in Vietnam is only allowed in a joint venture agreement with a Vietnamese individual or corporate shareholder.
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