The Applicability of the section and its provision is based on the inception whether it relates...
Establishing a company or any kind of business entity in a foreign jurisdiction is always a challenging task due to different legal system, environment and peculiar rules and regulations. Opening a business entity in Vietnam is no different. This piece of writing sheds some light on the step by step process of starting a company in Vietnam and the necessary documentation for successfully incorporating it.
According to the business ecosystem in Vietnam, the Companies exist in two basic forms. These are:
Between the above two forms of business entities, LLCs are the most common form of business entity for the foreign visitors in Vietnam because of their relative simplicity in operations while JSCs have numerous requirements such having a minimum of three shareholders. JSC as a business structure is preferable for those businesses who wish to issue shares and mobilise share capital by listing itself on the stock exchanges in the future.
However, if the foreign investors do not wish to open a company officially in Vietnam, then they have the following options:
It must be noted that the above two alternatives have their own limitations and the same are viable for specific scenarios and situations.
Following are the main positions that a company must have in Vietnam:
It must be noted that for the above two positions, the office holder can have a nationality other than that of Vietnam. However, he must be having a work permit for Vietnam.
Following is the step-by-step procedure along with their respective timeline for incorporating a company in Vietnam:
The statutory time limit mentioned is indicative of the time limit the authorities take in processing of the application and not reflect the time taken by the promoters in the preparation of the applications or for reviewing them or translation process etc.
Following are the standard documents required for a enterprise receiving investments from outside Vietnam:
In case of individual investor: Passport of the investor
In case of a corporate investor: incorporation certificate, extract of the Director and Address Register, Charter and all the amendments of that
The legal documents of the foreign investor may vary depending on the jurisdiction of the investor. However, the standard documents remain the same as mentioned above.
Some of the other requirements for opening a company in Vietnam include the following:
Total bar: Military and related printing:
Partial restrictions: requires a Joint Venture with a Vietnamese partner in sectors like tourism, advertising, logistics etc.
Vietnam has been rising as a major manufacturing hub and as a substitute to Chinese manufacturing. With a strategic location, competitive and competent labour force at competitive costs and an open FDI environment makes Vietnam an attractive destination for the foreign investors to expand their business operations by opening a company in Vietnam.
Read Our Article: How to set up a Limited Liability Company in Vietnam?