Are you thinking about setting up your business in Vietnam?
You are headed onto the right track to realize all your big dreams.
Vietnam is a flourishing economy; in fact, the third-largest in Southeast Asia. Along with China, Vietnam is the only Asian economy that sustained a positive GDP in 2020.
Since its sovereignty from France posts the World War II and the unification of north & south, Vietnam has come a long way from being an agricultural economy to a hub of foreign-invested commercial enterprises and ventures in Southeast Asia.
To successfully set up your business, must know the obligations:
Contents
Here Are the Crucial Requirements to Comply with:-
#1. Allowed Foreign Direct Investment (FDI)
An international investor can choose between the two available legal entities. The first one being the Joint-Stock Company (JSC), and the second is the Limited Liability Company (LLC).
For JSC, you need to get in at least three shareholders, whereas one or two shareholders for the LLC.
#2. Minimum Capital
For foreign investors, there is no minimum capital requirement for business registration. On an average, most companies in Vietnam are incorporated with a minimum cap of US$10,000.
#3. Business Address
For company incorporation in Vietnam, you require a legal and registered business address — it is mandatory by law.
However, startups with restricted funds or investors who prefer to play slow before making a long-term lease commitment will find a virtual office in Vietnam to be a practical solution.
#4. Resident Director
Another critical requirement for company registration in Vietnam is a resident director. The resident director must hold a resident address in Vietnam if not the business founder.
Frequently asked questions about company registration answered
1. How Long Does It Take To Set up a Business in Vietnam?
The incorporation time for each legal entity is different, but typically it takes no longer than three months to register your company with the Department of Planning and Investment (DPI). If your business requires additional permits and licenses, then this can even take longer.
2. Which type of Legal Entity Are Available for Business Incorporation in Vietnam?
Typically, there are three forms of legal entity:-
- Joint-stock Company (JSC)
- Local Limited Liability Company (Local LLC)
- Foreign Limited Liability Company (Foreign LLC)
3. Why do Foreigners Want to Invest in Vietnam?
- Decreased Red Tape
- Simplified Company Registration Process
- Low Operational Costs
- Young and Talented Workforce
- Encouraging Startup Environment
- 100% Foreign Ownership in Certain Industries
4. Do I Have to Travel to Vietnam to Start a Company?
Ideally, it is recommended, but if you can complete the contract of office/property lease, then no need to land in Vietnam.
5. Do I Require a Work Permit to Operate My Business in Vietnam?
Yes, you’re required to get the work permit.
Seek Expert Advice
A foreign investor considering operating in Vietnam has several company formation options, spanning from the registered company, a branch office, a nominee agreement to a virtual office.
We highly recommend consulting a Vietnam’s company registration company for gaining the full knowledge of each alternative and their unique requirements with each business model before you decide. They can assist you in making an informed decision, and help you with the entire process of company registration. They’ll offer data-driven, pragmatic advice with maximum flexibility.