Company Incorporation Guide in Vietnam
Updated on Tuesday 03rd October 2017
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After going from a centralized economy to a market-oriented one, Vietnam has started developing at the beginning of the 1990ies. Nowadays, Vietnam relies on the goods produced and sold locally by small and medium-sized enterprises (SMEs) picking up on the international trends and managing to integrate itself in the global economy.
With a commercial legislation which provides for similar types of companies as in Western and European countries, Vietnam offers various advantages to foreign enterprisers setting up businesses in this country. Our company formation consultants in Vietnam can offer information on the commercial legislation applicable here.
Foreign investors opening companies in Vietnam
Foreign citizens interested in Vietnam company formation can set up two types of businesses:
- wholly foreign invested company which can be set up with an entirely foreign ownership;
- joint venture company which implies having a local partner.
It should be noted that wholly foreign invested companies can be opened in a few industries in Vietnam. These industries are established by the government.
Requirements for setting up a company in Vietnam
One of the main reasons to establish a company in Vietnam is that it does not impose any minimum share capital. Also, the minimum number of shareholders for creating a Vietnamese company is one, as for the directors, there is no imposition related to their nationality.
When it comes to the actual company formation procedure, a foreign enterpriser must travel to Vietnam to complete the registration. Up to that point, he or she can appoint local company registration agents who can handle the drafting of the documents related to the incorporation of the business.
What are the steps to register a Vietnamese company?
In order to have a fully operational company in Vietnam, one must:
- verify the availability and reserve a company name;
- choose a type of company;
- make a company seal;
- register the company seal with the Business Registration Office;
- open the corporate bank account;
- deposit the share capital;
- apply for the business license;
- pay the business license tax;
- register with the tax authorities;
- register for employment and social security purposes.
Foreign investors should know that the Vietnam company registration process can take between 1 and 3 months.
For assistance in setting up a company, please contact our local company formation advisors.