Here are the Legal Setup Requirements for a Company Incorporate in Vietnam
Vietnam’s Investment Act 2014 governs the registration of foreign companies. But before you set up a company in Vietnam as a foreigner, you must first obtain an Investment Certificate. Now, company incorporate in Vietnam necessitate that as a foreign investor, the investment project must be legalized in principle (some cases) by the National Assembly, the Ministry of Planning and Investment among other relevant agencies.
The process can be cumbersome, but with the help of 3E Accounting Indonesia, you stand to benefit from some services hassle-free. With its high reputation across Southeast Asia and decades of existence, 3E Accounting offers a range of services from:
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Process for Opening a Business in Vietnam
The first step for both local and foreign investors planning to set up a company is to prepare the statutory documents before filing them with the Trade Registrar. For company incorporate in Vietnam, you must have your Memorandum and Articles of Association drafted in the presence of the public notary. Other documents required will include the following:
- Listing of names and details of the shareholders.
- A copy of the document stating the financial assets purchased by the shareholders
- A viability study that specifies how the business will benefit the local economy.
- A copy of the document explaining how the project of the company will conform with the legislation
- A publication about the registration of the company within three local newspapers.
The moment you have confirmed to the aforementioned statutory documents, you must file the documents with the Companies Register.
According to Vietnam’s Enterprise Law, you must first choose the type of business entity you’d want to incorporate. This can be selected from five of the common business entities namely; Partnership Company, Limited Liability Company, Joint-stock company, Business Cooperation contract and Public-Private partnership. And therefore, you must consult the experts before you make the decision. After that, you need to choose a unique name for your company which you can check at the National Business Registration portal.
Company incorporation in Vietnam requires that you have a company seal. The making of the company seal will require you to have a copy of the business registration certificate to the seal maker agency before being posted to the National Business Registration Portal for authorization.
Opening a Private Limited Company in Vietnam
Now, Private limited company is one of the common business setups for doing business in Vietnam. Some of the requirements include the following:
- One should have a minimum of one shareholder (any nationality other than the Vietnam resident).
- At least one director (local or foreigner) must have proof of employment and experience of a minimum of one year.
- In case the company is foreign-owned (LLC), you must open a corporate bank account with the local bank and the minimum paid-up capital deposited into the account. This will enable you to acquire the Foreign Investment Certificate (FIC).
For the record, the timeframe needed to open a company in Vietnam will vary which may go to a minimum of 30 weeks. This is inclusive of the company incorporation period, bank account approval to engagement planning among others. The investor often bears the costs which may vary with the type of business entity incorporated.
For you to be eligible to continue operating your business in Vietnam, you must register as a taxpayer. This, therefore, means that you must register with the tax authorities for VAT and income tax. Company incorporate in Vietnam requires that you comply with the Employment Act to obtain the Social Security number for both the company and your employees.
In the event, you feel that the process of registration is demanding, you contact us at 3E Accounting and get the needed services hassle-free. Our services go to as far as assistance in opening bank account and bookkeeping.