Company Incorporation in Vietnam
Incorporation in Vietnam is a great option for trade companies involved in ASEAN Free Trade Area, between Indonesia, Malaysia, Philippines, Singapore, Thailand, Laos, Myanmar, Cambodia. Also, it’s a very attractive country for investments.
Requirements for company formation in Vietnam
- Foreign ownership. Vietnam allows foreigners to own 100% of ownership in IT, trading, manufacturing, etc. But for some specific industries, foreigners cannot have this advantage and have to be at least in partnership with Vietnamese residents. Tourism, advertising, logistics must be under the Vietnamese Joint Venture.
- Company address. All companies are required to have a local registered address. We can register it for you. During the incorporation process, they might check your address.
- Resident director. All companies in Vietnam must have a director with the resident address. During the incorporation, it’s not necessary to have a work permit, but later on, it will be required. If the director is not a founder, he or she must apply for a work permit. If it’s the same person, possible to apply for a work permit exemption.
Knowledge Base
- Types of entities in Vietnam
- Work permits, exemptions, and visa
- Problems of Vietnamese business
- Resident director service
- Vietnam free zones
- Trademark registration
- Special permits for industries
- Requirements for annual filling.
- How to open a branch or representative office in Vietnam?
- Vietnam tax system.
- Annual renewal of your company
- How to hire employees?
- Remote Bank account in Vietnam
- How to close a company in Vietnam?
Step by step guide for company incorporation in Vietnam
Step 1. Entity Type and Name
First of all, you need to choose the entity type and provide 3 versions of a business name (we will check and reserve it with the Department of Planning and Investment).
- LLC with up to 50 members. It is possible to be the only member in LLC. 100% foreign-owned company. If for foreign-owned LLC will be appointed a foreign director, he must travel to Vietnam, get a work permit and provide proof of managing experience.
- A foreign-invested joint-venture enterprise. A partnership with locals. Must involve at least 1 domestic investor. A great option for some industries like transportation, tourism, video games, agriculture, and forest. The foreign percentage of ownership can be 49 to 99 percent. We will let you know the best option.
- Nominee Local Company (Local Limited Liability Company). An option for those industries requiring only local management and for reducing the cost of incorporation. But of course, there are many risks.
- Branch or Representative Office. The representative office cannot earn money inside Vietnam and must provide proof of establishment more than 12 months ago. Only for promotions and marketing purposes. The branch office is also not recommended. Long process and limited industries for foreign ownership.
Step 2. Business Registration
For incorporation in Vietnam, all companies are required to have a local address. DIA / Digital Advice can provide it for you.
DIA / Digital Advice will prepare all necessary documents for a Business Registration Certificate from the Business Registration office.
The Business Registration Certificate goes to the Department General of Taxation (Ministry of Finance). They will issue a special unique number for your enterprise.
A company seal will be the next step. We will order it for you and register it at the police Department.
After the incorporation is done, we will publish new company details in the local newspaper. It’s a mandatory step for new companies to publish it National Business Registration Portal (NBRP) within 30 days from the date of the establishment.
Step 3. Bank Account and FIC
DIA / Digital Advice will open a bank account for you remotely.
For incorporation both LLC and JVC, you will need to deposit share capital to your account and get approval for Foreign Investor Certificate (FIC). Requirement for approval — 10 000 USD. But in some industries, it might be higher.
The Foreign Investment Agency (FIA) and The Ministry of Industry and Trade (MIT) will check as well planned share capital (minimum 50 000 USD) and count the minimum paid-up capital.
Joint Venture Companies are required to have higher share capital and longer approval for Foreign Investment Certificate.
We will assist you with getting all special permits, visas, and licenses.
- Registration in the Ministry of Labor for hiring locals.
- Application for the work permit or work permit exemption.
- Confederation of Vietnamese Trade Union in Ho Chi Minh City