Register Company in Vietnam

Fionza Consultants is your premier partner for seamless company registration in Vietnam. Our comprehensive service package encompasses vital aspects such as Vietnam company registration, corporate bank account setup, and management of accounting and tax obligations. Trust Fionza Consultants as your one-stop solution, providing the essential support you need to kickstart your business legally in Vietnam.

Vietnam

Company Registration – 8 Week
Local Director? – Yes
Bank Account Opening – 4 Weeks
Travel Required – No

Register company in Vietnam: Introduction

Embark on a hassle-free journey to register your company in Vietnam with Fionza Consultants, where our expertise streamlines the entire incorporation process. Entrust us with the intricacies, allowing you to focus your time and resources on more critical aspects of your venture.

Benefit from our efficient approach, guided by a team of seasoned experts, ensuring a smooth experience throughout the Vietnam company registration process. Our commitment is to have your business operationally ready within the specified timeframe.

Explore our comprehensive service package designed to meet all your needs for starting a business in Vietnam:

Vietnam company registration facilitated through the Association of Certified Public Accountants (VACPA).
Professional Vietnam nominee director service.
Local company secretary and registered address support.
Corporate account opening with a reputable bank.
Annual accounting and tax services.

Count on Fionza Consultants for a seamless and efficient path to establishing and operating your business successfully in Vietnam.

How long to register company in Vietnam and open corporate bank account?

Explore our comprehensive service package designed to meet all your needs for starting a business in Vietnam:

Vietnam company registration facilitated through the Association of Certified Public Accountants (VACPA).
Professional Vietnam nominee director service.
Local company secretary and registered address support.
Corporate account opening with a reputable bank.
Annual accounting and tax services.

Count on Fionza Consultants for a seamless and efficient path to establishing and operating your business successfully in Vietnam.

Can a foreigner register company in Vietnam?

Explore the diverse business entity options facilitated by Vietnam’s government for foreign investors eager to initiate company registration. Fionza Consultants is poised to lead you through the requisite steps and vital requirements crucial for the establishment of your business in Vietnam.

Entrepreneurs aiming to create a foreign-owned company can select from a range of business entities, including the Limited Liability Company (single-member or multi-member), Joint-Stock Company, Partnership Company, Branch Office, and Representative Office. Significantly, Vietnam upholds a uniform approach, extending comparable treatment to diverse enterprise structures, whether foreign or domestically invested.

In the majority of sectors, foreign business owners can attain complete ownership (100%) during the incorporation of a Vietnam business. Fundamental prerequisites for foreign investors encompass a minimum paid-up share capital of US$10,000, the appointment of a resident legal representative, at least one resident director, and a registered address.

For those contemplating the establishment of a branch office in Vietnam, documentation substantiating a minimum of 5 years of prior business operations abroad is obligatory. Notably, foreigners seeking company formation in Vietnam must have at least one local resident legal representative, who can concurrently serve as the resident director. Should the company designate a foreign legal representative not yet resident in Vietnam, securing a work permit necessitates travel to Vietnam. Furthermore, appointed foreign legal representatives are required to have a minimum of 1 year of managerial experience.

Place your confidence in Fionza Consultants to expertly navigate the complexities of company setup in Vietnam, ensuring a seamless and efficient process.

Types of companies in Vietnam

Fionza Consultants is your trusted partner in facilitating the incorporation of your business in Vietnam. There are five main types of corporations available for business owners considering company registration in Vietnam, each with its distinct characteristics: Limited Liability Company (LLC), Joint Stock Company (JSC), Partnership Company, Branch Office, and Representative Office. Careful consideration of each business structure is crucial before proceeding with Vietnam company registration.

Limited Liability Company (LLC)

A popular choice for incorporation in Vietnam, an LLC involves members contributing capital to the business. Noteworthy features include the option of single-member or multi-member LLCs. Advantages include decision-making autonomy, simple management, and higher cost savings. However, limitations include potential doubts about the company’s capacity due to limited capital scope, especially for smaller enterprises.

Joint Stock Company (JSC)

A JSC allows shares to be bought and sold by shareholders, dividing charter capital into shares. This type is the only Vietnamese corporation able to issue corporate bonds and can be listed on stock exchanges. While JSCs offer high capital-raising capacity and the ability to operate in various sectors, they may face bureaucratic challenges and stringent regulatory governance, particularly in finance and accounting.

Partnership Company

Involving a formal arrangement by two or more partners, a Partnership Company shares profits and liabilities. Partnerships may have unlimited liability, and all partners must have at least two members. While partnership companies forge trust easily, they come with the risk of unlimited liability. They are not allowed to issue securities for capital.

Branch Office

Foreign companies outside Vietnam can establish a branch office, provided they have been incorporated and active for at least 5 years. The branch is not recognized as a separate legal entity, requiring a resident representative, annual tax returns, and audited financial statements.

Representative Office

For foreign companies, a representative office in Vietnam is an option for non-income-generating activities, such as market research and promoting parent company activities.

Trust Fionza Consultants to guide you through the complexities of company setup in Vietnam, ensuring a seamless and efficient process.

How to register a company in Vietnam?

Our dedicated team at Etra Consultants has streamlined the essential steps for company formation in Vietnam. We strongly advise you to review these steps to gain a comprehensive understanding of the registration process when engaging Etra Consultants for your expansion plans in Vietnam.

Step 1: Choosing an Optimum Business Structure

Before initiating company formation, selecting the right business structure is crucial. Fionza Consultants will guide you based on your business structure, goals, and recommend the most suitable entity, considering paid-up share capital requirements, corporate structure, and applicable licenses.

Step 2: Reservation of Company Name

Prior to registration, we will search and reserve your company name through the Vietnam company registry accessible by the business registration portal. Each application allows up to 3 name submissions.

Step 3: Preparation of Relevant Documents

Fionza Consultants will assist in preparing the necessary documents, including notarizing and legalizing the parent company’s documents in Vietnam. This involves translating and validating all documents issued by overseas authorities through the Vietnamese Embassy in your home country.

Step 4: Application of Investment Registration Certificate (IRC)

Except for Representative Offices (RO) and Branch Offices, foreign-owned companies must apply for an Investment Registration Certificate. Fionza Consultants will prepare the required documents for IRC application, including a detailed project report, proposal, and financial statements.

Step 5: Register Company in Vietnam to Obtain Business Registration Certificate

Upon successful IRC application, foreign investors must apply for the Enterprise Registration Certificate (ERC) or Business Registration Certificate (BRC). Fionza Consultants will assist in preparing the necessary documents, including the application, company charter, board member list, and letters of appointment and authorization.

Step 6: Application of Foreign Investment License (FIC)

For LLCs, a Foreign Investment License (FIC) is required, with a minimum paid-up share capital of US$10,000. Fionza Consultants will prepare the relevant documents for FIC approval.

Step 7: Tax Registration

Fionza Consultants will complete your company tax registration through the Municipal Taxation Office in Ho Chi Minh City and assist in obtaining any applicable business sublicenses or permits.

Step 8: Creation of Company Seal

All companies in Vietnam require a company seal for legal document validity. Fionza Consultants will assist in designing and ordering a company seal, ensuring it includes the company’s name and registration number.

Step 9: Corporate Bank Account Opening

Depending on your business structure, Fionza Consultants will help consolidate the required documents and assist in opening a corporate account with a reputable local bank. Once the ERC is issued, you can activate your account and deposit the required paid-up share capital.

Accounting and tax obligations

Fionza Consultants is the preferred choice for international clients seeking top-notch accounting and tax services in Vietnam. Our team ensures timely completion of your firm’s financial statements, corporate tax returns, and adept management of auditors, all accomplished seamlessly without the need for your physical presence. Meeting the deadlines set by the Vietnam Association of Certified Public Accountants (VACPA) is a priority.

Companies operating in Vietnam are obligated to make quarterly tax payments based on income estimates. However, the filing of corporate income tax returns is an annual requirement with the General Department of Taxation. All entities incorporated in Vietnam must adhere to a Corporate Income Tax rate of 20%, irrespective of the income source.

For foreign companies conducting business activities in Vietnam without incorporation, they are subject to Foreign Contractor Tax (FCT). This comprises elements from both value-added tax (VAT) and Corporate Income Tax, with a Capital Assignment Profit Tax (CAPT) rate of 20%.

Value-added tax (VAT) applies to both domestically traded and imported goods and services in Vietnam. The standard VAT rate is 10% for regular goods and services, while essential goods and services incur a 5% VAT. Additionally, companies are required to pay an annual tax for their business license from the second year onwards.

Maintaining accounting records in the local currency (Vietnamese Dong) is mandatory, with translation conducted by relevant competent authorities. Annual financial statements must undergo auditing by a Vietnamese-based auditing company, submitted to the licensing agency, Ministry of Finance, statistics office, and tax authorities, 90 days before the fiscal year concludes.

Count on Fionza Consultants to guide you through the intricacies of tax considerations, ensuring compliance and optimal financial management for your business in Vietnam.

Why register company in Vietnam?

Before embarking on the journey to register a company in Vietnam, it’s crucial to gain a comprehensive understanding of the business landscape in this jurisdiction. This ensures that your newly established entity can effectively and legally conduct business while aligning with your long-term goals.

Political Landscape

Vietnam’s GDP is expected to rise significantly by 2035 due to agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam (EVFTA), potentially accelerating GDP growth by up to 15%.
The country has benefited from the US-China trade war, evident in the substantial increase in Vietnamese exports to the US.

Economic Overview

Vietnam attracts significant foreign direct investments (FDI), especially from Asian countries like Hong Kong.
The nation has sustained strong GDP growth, averaging around 7% annually for a decade.
Economic reforms, known as the Doi Moi Reforms, have elevated Vietnam from a poorer third-world status to the lower-middle income range, with aspirations to reach the higher-middle income tier by 2035.

Social Landscape

Major manufacturing conglomerates such as Samsung, LG, and Foxconn operate in Vietnam.
The country boasts the third-largest population in Southeast Asia, with a young demographic, where more than 50% of the population is younger than 31.8 years.
Vietnam is ranked 70 out of 190 countries for ease of doing business by the World Bank Group.

Technological Advances

A robust e-commerce industry with substantial revenue and a booming fintech sector characterize Vietnam’s technological landscape.
Prominent companies like Momo, Money Lover, Kyber Network, and TomoChain dominate the digital economics landscape.

Legal Framework

Vietnam’s government focuses on reforms and policies to attract foreign investments, emphasizing increased transparency.
Membership in ASEAN, the World Trade Organization, and signing numerous double tax agreements enhances the ease of doing business.
Some bureaucracy and lack of financial transparency are challenges, particularly in certain industries with restrictions on foreign investments.

Environmental Considerations

Ho Chi Minh City faces significant air pollution issues.
The government is shifting focus to sustainable development and environmental protection, offering business opportunities in the environmental sector.

Free Zones in Vietnam

Vietnam has developed over 250 industrial zones within four key economic zones, attracting both domestic and foreign projects.
Benefits of free zones include extended land leases, reduced corporate income tax, tax reductions on personal income for employees, corporate tax exemptions on approved projects, and exemptions from certain taxes for goods processed within these zones.

Understanding these aspects is crucial for making informed decisions when registering a company in Vietnam. Fionza Consultants is here to guide you through this complex landscape, ensuring a smooth and successful incorporation process.

Alternatives to company registration in Vietnam

For those interested in conducting business in Vietnam without the necessity or ability to register an entity due to limitations imposed on foreign business owners, several alternatives can be considered:

1. Business Cooperation Contract

This involves collaboration between two parties, typically a Vietnamese business entity or investor and a foreign investor. It serves as a formal agreement outlining the terms of cooperation and can provide a legal framework for business activities.

2. Special Purpose Vehicle

A Special Purpose Vehicle (SPV) is a business cooperation method solidified by a contract between two business parties. It serves as an alternative to engaging nominee businesses, which might face acceptance challenges from local authorities in recent times.

3. Employer of Record

This option allows foreign investors to employ staff in Vietnam without the need to set up a formal company. Fionza Consultants can serve as your business’s Employer of Record, simplifying the employment process.

4. Importer of Record

Suitable for foreign business owners or investors solely interested in trading in Vietnam without the need for company incorporation. An Importer of Record facilitates the smooth and speedy importation of goods into Vietnam, streamlining the trading process.

Consider these alternatives to navigate the complexities of doing business in Vietnam without the formal registration of an entity. Fionza Consultants is well-equipped to assist you in choosing the most suitable approach for your business goals.

Looking to register company in Ajman?

Fionza Consultants is your comprehensive solution for all inquiries on initiating a business in Vietnam. Our array of services encompasses company formation, registered agent services, securing a registered address, and facilitating the opening of a business bank account.

Connect with us to explore detailed insights on the process of company registration in Vietnam. Our dedicated team of experts is poised to respond within the next 24 hours, providing valuable guidance tailored to your specific needs. Get in touch now to kickstart your journey into establishing a successful business presence in Vietnam.

FAQ

What is the best business in Vietnam?

Vietnam has a booming manufacturing and real estate sector. As such, Fionza Consultants recommend setting up a business in Vietnam in these sectors.

The manufacturing sector in Vietnam is regarded as one of the most attractive in Asia. There are several advantages including competitive labor costs, availability of raw material resources, low barriers to trade as well as the multiple investment incentives placed by the Vietnamese government to attract foreign direct investment. This is seen in how more than 60% of Vietnam’s total FDI inflows comprises investment related to their manufacturing industry.

Similarly, the real estate sector has been on the rise in Vietnam with its booming economy, increasingly affluent people and rising demand for residential property. This is reflected by the fact that the real estate sector accounts for the second-largest FDI inflow into the country. Ho Chi Minh City has also become the hub to attract many of the large-scale real estate projects, with sizable investments made towards Hanoi as well. The outlook for the Vietnamese housing market remains bullish, and this is attributed to consistent strong economic growth, rapid urbanization, and the ongoing construction of several mega projects.

How much does starting a business in Vietnam cost?

The minimum share capital requirement to incorporate a business with Limited Liability in Vietnam is US$10,000. Tetra Consultants will assist you in opening an account with a trusted local bank to deposit the required paid-up capital.

As for Tetra Consultants’ engagement fees, this will depend on the exact services required from Tetra Consultants. Our fees are inclusive of government fees and all fees will be clearly stated in our engagement letter prior to the start of the engagement. Tetra Consultants believes in transparency with our valued clients and there are no hidden fees.

Is a company secretary necessary to set up a business in Vietnam?

No, a company secretary is not necessary to incorporate in Vietnam. However, Fionza Consultants will provide you with a local secretary to assist in the annual tax filing and accounting requirements.

Why do small businesses in Vietnam tend to choose to incorporate a limited liability company?

As compared to other business entities, a limited liability company allows for easy access to the local market and has a lower incorporation cost. A limited liability company also protects business owners’ assets as shareholders are not held liable for the debt and obligations incurred by the company.

Furthermore, a single-member LLC is a very attractive option for small businesses because it can be incorporated with only one director, hence allowing business owners to have full authority overall business activities.

What are the requirements for a legal representative?

While there are no nationality requirements for a legal representative in a company, every company incorporated in Vietnam must have at least one local legal representative.

The legal representative must be someone in the company that holds at least a managerial position. The legal representative cannot leave the country for more than 30 consecutive days. In the case that the legal representative is required to travel out of Vietnam for more than 30 days, he/she must sign a Power of Attorney with another qualified legal representative.

Can foreigners buy property in Vietnam?

Yes, both foreigners with a visa and foreign companies can purchase residential properties in Vietnam. However, foreigners are not allowed to purchase land in Vietnam as it is regarded as a national good. Instead, foreign companies can choose to apply for Land Use Right (LUR) which allows them to use the land for up to 50 years and conduct real estate transactions. The duration can be renewed.

What are the minimum requirements to start a business in Vietnam?

A Vietnam business must have at least 1 resident director, 1 local legal representative and an office address. The resident director and the local legal representative can be the same person. Companies will also be required to procure an investment registration certificate (IRC) before they can set up their business. For limited liability companies, they will be required to have at least US$10,000 of share capital in their business account.

What are the visas I can apply for?

There are 3 main types of visas that foreign investors can apply for after incorporation of a business entity in Vietnam. They are the DT Visa, LD Visa and Temporary Resident Card.

While the LD Visa and Temporary Resident Card are valid for up to 2 years, the DT visa is valid for up to 5 years.

Fionza Consultants will be able to assist you in obtaining the relevant visas from the Ministry of Foreign Affairs of Vietnam (MOFA) that are most suited to your needs.

How to start a small business in Vietnam?

You can easily start a small business in Vietnam with a director residing in Vietnam and a minimum capital of US$10,000. Small businesses that require a low amount of capital include companies that provide consulting services, an online business in Vietnam that sells clothes or other non-perishable products, a small restaurant or an IT service provider.

Can a foreigner own a business in Vietnam?

Yes, 100% foreign ownership is generally allowed in Vietnam for most sectors. However, they will need at least one local resident legal representative. This representative can be the resident director. If the company wishes to appoint another legal representative who is a foreigner and not yet a resident in Vietnam, it is required that they travel to Vietnam to obtain their work permit. Appointed foreign legal representatives also need to have at least 1 year of experience in a managing position.

How to check if a company is registered in Vietnam?

You can look up the company and its details in the National Business Registration Portal.

Register Company in Vietnam