With its growing economy, Vietnam is a popular destination for setting up shops. Many business-minded people have started to follow this trend and open businesses in Vietnam. Considering the country's expanding middle class and its lenient regulations, setting up shop here makes perfect sense. We examine the procedures required to register a company in Vietnam.
Once you know what to do, establishing a company in Vietnam and officially registering it is a simple procedure. Opening a firm somewhere is likely to involve some difficulty.
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Entrepreneurs from outside the country may own up to 100% of a firm they establish in Vietnam. However, this level of ownership is only permitted in some fields. For example, international investors in the tourist and advertising sectors in Vietnam need to form a Vietnamese Joint Venture Company.
Foreign investors will find working inside the Vietnam business system simpler since it conforms to WTO standards. When the World Trade Organization and domestic laws don't say anything about a business issue, there is an exception where permission from the right government is needed.
To register company in vietnam, one must fulfill several stipulations. These are only a few examples:
Most notably, there is no required starting capital for a Vietnamese corporation. A new business must follow the law and have enough money to run until it can do so.
The typical starting capital for a company in Vietnam is VND 230 million, or around $10,000. Companies of a smaller size may get going with an investment of about $3,000 (or VND 69 million). Since there is no fixed floor, your startup costs will be entirely determined by market demand.
The banking, insurance, and finance industries are just a few that have minimum capitalization standards (including fin-tech).
One of a company's directors must be physically present in the country. The law is flexible because the resident director can be a citizen or a permanent resident of Vietnam. However, they do have to have an address in the country.
Unless they are among the company's founders, non-Vietnamese directors will need a work visa. If a non-resident is a founding firm member and has asked for an exemption, they do not need a work visa.
Having a physical presence in the country is a must for founding a corporation in Vietnam. Typically only service-based businesses may use a virtual address to avoid the requirement altogether. All other companies must provide a physical address throughout the registration process.
The time required to register a business in Vietnam varies according to the specific procedures involved. The process typically takes around a month but may take up to five weeks. The normal registration time is 14 weeks, but this could be extended to 20 weeks in some situations. The number of licenses and sub-licenses needed by each organization is a crucial element in establishing the duration of the registration. A business must get many licenses and sublicenses before it can legally conduct its operations, which vary widely depending on the sector in which it operates. A company's registration duration will vary from industry to industry.
Creating a legal entity in Vietnam may be optional. The use of intermediary organizations allows trade and commerce to take place. To that end, consider the following strategies:
In the Vietnamese market, a representative office will act on your behalf. Companies like PremiaTNC exist to enable entrepreneurs to manage their businesses without the need to form a legal entity. Many businesses choose this route since it provides instant access to the Vietnamese market without the time and expense of creating a local entity there.
If you have an employer of record, you may recruit workers even if you don't own a firm or register as a business. A service may handle all aspects of hiring, onboarding, and compensating workers in a foreign country, ensuring compliance with all applicable rules and regulations.
You may import products into Vietnam without forming a corporation if you have an importer of record. You may continue running your company as usual while waiting for import license registration and approval.
Several Vietnamese commercial sectors are off-limits to international investors. Foreigners are prohibited from working in industries related to guns, drugs, prostitution, human trafficking, and debt collection. Anything that violates the law (such as human cloning or trafficking) belongs here.
Foreign investment in Vietnam is restricted to a few sectors. You or your firm must fulfill certain requirements to participate in such fields. This group includes the auditing, accounting, insurance, and banking sectors.
However, not all of Vietnam's service industry businesses may have 100% foreign ownership. Foreign ownership, investment, or business influence may be restricted in some sectors.