Understand the Jurisdictions Setup Requirement Before Proceed Your Vietnam Company Formation
For many years, Vietnam had a centralized economy, and it was a real hurdle for foreign investors to get their foot into the country. However, that has since changed following the adoption of the market-oriented approach by the government in 2007. The country is now a paradise for both local and offshore companies, and we are here to accord you all the help you need for Vietnam company formation.
Hurdles for Foreigners Starting Businesses in Vietnam
As a foreigner with intentions of investing in Vietnam, you should know that you will face quite a number of challenges, including stringent regulations, licensing hurdles and a plethora of bureaucratic red tapes that might make the registration process of your business a real nightmare.
This is why you will need to align yourself with experts who know all there is to know when it comes to company formation in Vietnam. We are one such professional, and you can comfortably rely on our services for starting any form of business in Vietnam.
Requirements for Setting Up a Company in Vietnam
The requirements for setting up a company in Vietnam will vary based on the type of company you are establishing. But one thing you will appreciate is the fact there is no minimum share capital required to form a company in Vietnam. Additionally, only one shareholder is required to register a Vietnamese company. There are also no impositions on the nationality for the directors of the company.
Here is a look at some of the company types you may form in Vietnam:
Representative Office
This is for businesses with operations out of Vietnam, but intend to establish their presence in the county. Though foreigners can fully own them, they are not permitted by law to engage in any profit-generating activity. In most cases, these entities just conduct market research prior to Vietnam company formation.
Branch Office
Foreign companies can open branch offices in Vietnam with resident representatives. Branch offices are legal entities, and unlike representative offices, they can engage in income generating activities allowed for foreigners under the law. They also have unlimited liabilities.
Public Limited Company
A public limited company can have at least three shareholders, irrespective of their nationalities. After formation, the company will have to appoint a foreign director who will have to travel to Vietnam to take care of the legal works. If everything goes smoothly, then the company can operate immediately.
Limited Liability Company
It is possible to set up a foreign limited liability company in Vietnam with just a single shareholder. With relatively easy registration requirements, it is usually the preferred investment vehicle for most foreigners hoping to establish their presence in Vietnam.
The Procedure
Here is an overview of the company registration and formation procedure in Vietnam:
- Company name registration – must be followed by registration certificate and tax registration certificate
- Choosing the type of company
- Creating the company seal
- Registering the company seal with the Business Registration Office
- Opening the company’s corporate accounts
- Depositing the share capital
- Applying for the business license
- Paying for the business license tax
- Registering with the Vietnamese tax authorities
- Employee registration with the social insurance fund
Let Us Help You
With all the corporate structures available for foreigners in Vietnam, each has its own set of challenges when it comes to registration. At 3E Accounting United Kingdom, we are a team of accountants, tax experts, and attorneys. We can help you oversee the entire process of Vietnam company formation. Contact us or send us an email to know more.