Vietnam company formation: Below is general information in relation to setting up a foreign-owned company in Vietnam.
Under Vietnamese laws, a foreign investor (foreign entity or individual) may establish its presence in Vietnam as a limited liability company with one or more members, a joint-stock company or a partnership.
The company name must be written in Vietnamese, using letters on the list of Vietnamese letters of the alphabet and may be followed by the letters F, J, Z, and W and by numbers and signs which must be pronounceable. The corporate form of the company (e.g. limited liability company, joint stock company) shall be included in the company name.
Except for certain business sectors (e.g. commercial banking, financial companies, finance leasing company, international tourism, real estate, security etc.,), there is no minimum capital requirement.
The company must have a legal representative who has the right to enter into and perform all transactions that concern the company. The legal representative does not need to be a Vietnamese. It is required that the legal representative resides in Vietnam. If the legal representative is abroad for more than 30 days, he/she shall authorize another person to act.
The company may have single or multiple business lines and investment objectives. There are business sectors in which foreign investor’s participation is “conditional”. In addition to conditional investments sectors, investment condition may be based on other factors, such as form of investment, nationality of investor, professional expertise of the investors etc.,
Company shall have a physical office address in Vietnam. The registered office address must be notified to the licensing authority of the application for incorporation.
Issuance of Investment Certificate
Depending on the size and sectors of investment, the foreign investor must follow different licensing and registration steps.
The company, where invested capital is below 300 billion VND (approx. 15 million USD) and business lines do not fall in conditional investment sectors, is subject to registration of investment and the issuance of an Investment Certificate. The Investment Certificate also serves as Business Registration of the company. All other company must undergo an investment evaluation. The procedures for investment evaluation comprise an assessment of the whole investment project by the licensing authority.
Once the application for setting up a company is filed, it usually takes 15 working dates for the licensing authority to review and approve the registration of investment and 30 - 45 working dates for investment evaluation.
Applying through LHD Law Firm
There is a real benefit for preparing and submitting an application for setting up a company through LHD Law. The procedures and documents for setting up a foreign-owned company are quite cumbersome. As we have substantial experience in assisting clients in setting up their companies, we are able to assist you in preparing documents that are accepted by the licensing authority and tailor our services to meet your requirements.
Virtual Office and Company Secretary Services
Many of our clients like us to support their company in Vietnam with office address and company secretary services. If required, we will be delighted to build a package to suit your business requirements.