Expand Your Business – to Set Up a Company in Vietnam

Expand Your Business – to Set Up a Company in Vietnam

 

Why Should You Set Up a Company in Vietnam?

Vietnam economy is very dynamic hence many multinationals are setting up a company in Vietnam. Despite bureaucratic challenges, licensing delays and inconsistent regulations, many businesses are ready to set up a company in Vietnam. Business expansions in Vietnam can be done by setting up a joint venture company or as a limited liability company. The businesses who are setting up a company in Vietnam can open a branch here or may incorporate a corporate office if they want to expand their market in South Asia.

 

How to Set Up a Company in Vietnam?？

Three important ways by which a business can successfully set up a company in Vietnam are:

1. Limited Liability Company:

   It can be set up by one shareholder of any nationality; the director who is the legal face of the company will have to travel to Vietnam and have a work permit. Foreign-owned LLC’s should do the following:

   1. Open a local bank account
   2. Apply for foreign investment certificate (FIC)
   3. Open an office in Vietnam
2. Vietnam free zone company

   Foreigners can opt for this business choice only if they intend to produce and export a majority of their products. After approval of the business from the authorities, the company can be set up in an industrial park or special zones. A minimum investment of USD 200,000 is required, and such projects are eligible for many tax benefits.

3. Joint Venture Company

   A joint venture company needs a foreigner and one shareholder who belongs to Vietnam. To open a joint venture company, they must meet the following requirement:

   1. Have a legal representative who resides in Vietnam
   2. Open a bank account
   3. Apply and obtain foreign investment certificate (FIC)
   4. Set up an office for registered address
4. Local limited liability company

   To set up this kind of company in Vietnam, you will have to hire a local nominee as the shareholder. This type of company requires low capital requirements and limits the legal risk.

5. Vietnam Public Limited Company
   This type of company requires three shareholders who can belong to any country and one director who is the legal representative of the company. He needs to travel to Vietnam and must obtain a work permit.

 

Opening an Office in Vietnam

Foreign offices open branch offices in Vietnam, and it requires the company directors to:

1. Appoint a representative
2. Audited financial statements
3. Annual return with Trade department office

It is recommended that the companies set up limited liability companies rather than branch offices except in areas of banking, finance and insurance.

Foreign companies can open their representative office in this country after doing business abroad for at least a year. Although, this office can be 100% foreign owned but it cannot perform production or any commercial activities and can be involved in activities such as market research, promotion of parent company.

To set up a company in Vietnam it is good to have a local representative who can be beneficial in legal matters along with benefiting the company from lower reporting and taxation.

To set up a company in Vietnam, it is best to have a local representative who can benefit the company in terms of legal matters. Please contact us for more details.