Vietnam has surged as one of the most important economies in Southeast Asia in the last few years which attracted many investors from neighboring and Western countries. Opening a company in Vietnam as a foreigner implies knowing the local legislation and complying with several requirements. With respect to the cities in which such company can operate, there are plenty of options, however, most investors direct their attention to Hanoi, Vietnam’s capital.
There are many reasons for starting a business in Hanoi and our company formation specialists in Vietnam can offer tailored services to those interested in doing business in this country.
How to set up a company in Hanoi as a foreign entrepreneur
As mentioned earlier, foreign entrepreneurs will be subject to different criteria from local investors if they decide to set up a business in Hanoi. The main requirements for company registration in Hanoi imply selecting the business form and for foreigners, the wholly-owned limited liability company is the right choice for those who want to have full control over the operations. However, Vietnam is unique from this point of view, as foreigners can set up other types of companies which are less common in Western countries.
Among these are:
- joint ventures which have the same as in Western countries and imply partnerships with local investors;
- business cooperation contracts which are covered by a new Company Law which was enabled in 2015;
- public-private partnerships which can be created under agreements with the Vietnam government;
- various types of agreements concluded for the realization of specific projects.
You can rely on our company formation specialists in Hanoi for information on the provisions of the Enterprise Law which sets forth many advantages for foreign investors.
Requirements for opening a company in Hanoi
Foreign businessmen must consider the following requirements if they plan on starting a business in Hanoi:
- they must carefully select the type of business form for their operations;
- the minimum share capital for starting a company in Hanoi will depend on the activities the business will undertake;
- the company must have at least one shareholder and one manager – both can be foreign citizens;
- the investor will need to open a corporate bank account with a local bank in Hanoi;
- the business owner will need to obtain a foreign investment certificate prior to registering the company.
An important aspect which needs to be considered is related to the manager of the company. Even if a foreign citizen is allowed to act as a company director, he or she must have at least 3 years of experience in this role and must obtain a Vietnamese work permit in order to fulfill their duties.
If you have any questions related to the requirements of setting up a company in Hanoi, our local consultants are at your disposal for providing the answers. We also offer guidance in setting up a limited liability company in Vietnam.
Company formation services in Hanoi
With a vast experience in registering companies, our agents in Hanoi can help foreign investors interested in setting up companies in Vietnam and particularly in Hanoi. We can assist with the preparation of all the documents required for registering the business with the Trade Registrar in Hanoi. We can also assist with the opening of the bank account in which the share capital will be deposited.
We can then advise on the types of licenses which need to be obtained based on the operations to be completed by the company.
Among the services we can offer are also virtual office packages which can be of great help for those looking to reduce the costs related to the office space during the first phase of starting the operations in Hanoi. Considering that once established the company must also comply with the accounting requirements imposed by the tax authorities, we also offer accounting services in Hanoi. Furthermore, if you are looking for accounting services in Vietnam, you can get in touch with our lawyers. You need to know that according to the laws in effect and accepted practice, a company that receives an enterprise registration certificate is expected to set up and maintain an accounting system that complies with Vietnamese Accounting Standards and Vietnamese Accounting Systems for Enterprises. Get in touch with our CPA in Vietnam for further details and procedures.
Why open a company in Hanoi?
Hanoi is the capital city of Vietnam and one of the most important business centers in the country. It is also the second largest city in the country, and it offers numerous business opportunities in industries like trading, manufacturing, commerce, services and IT.
According to several studies, Hanoi is expected to be the fastest growing city in the country by 2025 thanks to a large number of investors interested in doing business here. Hanoi relies on a great road and maritime infrastructure which makes one of Vietnam’s most important international trading hubs.
If you want to set up a company in Hanoi and need information about the requirements related to registering the business, please contact us. We remind you that we are at your disposal with full company formation services in Vietnam.