The Share Capital in Vietnam

Updated on Thursday 07th December 2017

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Foreign enterprisers who want to start a business must consider various aspects before proceeding with the company formation procedure in Vietnam. Among these are the documents they must prepare, the approval they must obtain and the share capital requirements they must comply with. These are all regulated by the Commercial Code in Vietnam.

Our local consultants can explain the requirements related to starting a business in Vietnam and can offer information on the share capital which must be submitted upon incorporation.

The legal capital and the charter capital in Vietnam

These are the two types of share capital prescribed by the law when registering a company in Vietnam. According to the Company Act, the charter capital is the amount the shareholders contribute with when opening a company in Vietnam and which must be stated in the incorporation documents, also known as the charter of the company.

The legal capital is the minimum share capital which must be subscribed upon the registration of a company based on the requirements of the law.

It should be noted that Vietnam imposes certain share capital requirements to a few industries.

The paid-up capital in Vietnam

As mentioned above, there are certain industries in which the investor must deposit the share capital upon the incorporation of the business with the Trade Register. This is the paid-up capital and it is required in the following cases:

-          when opening a company in the real estate sector;
-          when opening a business in the insurance industry;
-          when registering a joint stock company which will be listed on the Vietnam Stock Exchange.

Investors setting up a joint stock company must deposit at least 20% of the share capital when the company is registered.

Our Vietnam company formation experts can offer information on the minimum share capital required in the industries above.

The Enterprise Law provides for the alteration of the share capital of a Vietnamese company by increasing or decreasing it. These changes must be announced to the Vietnam Trade Register.

Foreign enterprisers who want to open companies in Vietnam can ask our local consultants on the formalities they need to fulfill. They can also contact us for assistance in registering the company with the right authorities in Vietnam.