Vietnam is one of the most developed economies in Southeast Asia. With a young and skilled labor force and with one of the largest gross domestic products in the region, foreign investors find Vietnam very attractive for setting up companies.
One can choose between several types of structures for opening a company in Vietnam, however the most popular one is the limited liability company because it resembles the structure employed by investors in Western countries.
Even if a company has been registered, it is useful to know that its structure can be changed, if the owner wants to. Our company formation agents in Vietnam can explain the procedure for changing company types in this country.
Types of companies which can change structures in Vietnam
The Company Law provides for the following types of companies in Vietnam:
– the sole proprietorship;
– the partnership;
– the private limited liability company;
– the joint stock or public company.
These types of business forms can change their structure, in accordance with the Vietnam laws. However, there are also other types of companies which cannot change their form and our Vietnam company registration consultants can offer detailed information on them.
The procedure for changing company types in Vietnam
The procedure of changing company types depends of the first form of the Vietnam business.
For example, sole traders and partnerships require de-registration and then re-registration under the chosen form, while for the private limited liability company the amendment of the incorporation form and a notification filed with the Trade Register in Vietnam will be required. This is because the limited liability company can be a single-member company or a multi-member company.
The most employed change in company structure in Vietnam is transforming a single-member company into a multi-member one. This also implies appointing a member’s council and an inspection committee.
In the case of changing a private company into a public company, an augmentation of the share capital is required.
For full information on changing company types and assistance in setting up a business in Vietnam, please feel free to contact our local company formation advisors.