vietnam

STEP BY STEP SETUP COMPANY IN VIETNAM

STEP BY STEP SETUP COMPANY IN VIETNAM

☑ When Expat want invest and Set up company in Vietnam ► They need Experts (Attorney) at Vietnam for set-up an LLC setup, set-up a wholly foreign-owned entity, joint venture, public limited company, branch or representative office...

setup company in vietnam

When foreign investors are interested in companies established in Vietnam, they need to know what issues?

Provisions of the current law of Vietnam like?

Government policies for foreign investors?

Capacity requirements of foreign investors like?

In the business sector that the Government of Vietnam encourages foreign investors to participate in?

Requirement document client need →
1. Passport (if investor is an individual investor) Or Business license (if the investor is a business investor)
2. Bank balance statement or Financial statement of business.
3. Office lease contact indicasting the license purporse for office rental

Step 1: What kind of company you started?

► 2-50 Co. Ltd. members or 1 member co.LTD

► JSC company ?

► Branch offices of foreign companies in Vietnam ?

► Vietnam Company has 49% ownership by foreigners?

→ 100 percent FOEs can be established by one or more foreign investors, under the form of either a limited liability company (LLC) or a joint-stock company (JSC). JVEs can be established as an LLC, a JSC, or a partnership, and the profits and risks in a JVE are distributed among the parties in proportion to their charter capital contributions. Other options for establishing a commercial presence in Vietnam include representative offices and branch offices, but these are not legal entities.

In this article, we discuss the establishment requirements, common purposes, as well as the pros and cons for the following foreign investment vehicles →

  1. Limited liability companies
  2. Joint-stock companies
  3. Partnership companies
  4. Representative offices
  5. Branch offices
  6. Business cooperation contracts
  7. Specific authorized projects

# 1. Limited Liability Companies

100 percent FOEs and JVEs can be established as limited liability companies. In an LLC, members are only liable for the debts of the company to the extent of the capital contribution they have poured into the company.

There is usually no minimum capital requirement for foreign investors that intend to establish an LLC in Vietnam, although authorities will expect the investor to commit a reasonable amount of charter capital according to the scale and business scope of the project.

An LLC can consist of a single member or multiple members, but the total number of members cannot exceed 50. Investors can be corporations or individuals.

Note: An LLC cannot issue shares.

# 2. Joint-stock Companies

FOEs and JVEs can also be established as joint-stock companies. A JSC can issue securities and bonds, so investors will often choose this form if they plan to go public in the future.

The JSC’s charter capital is composed of shares belonging to founding shareholders in proportion to the capital they have subscribed. There is no minimum requirement for the charter capital of the foreign investors.

A JSC is required to have at least three shareholders. There is no limitation on the maximum number of shareholders, nor on their nature – they can be individuals or institutions, Vietnamese or foreigners.

# 3. Partnership Companies

A partnership company is a legal entity established by at least two individuals who are the members of the partnership and co-owners of the enterprise. They are the general partners and are liable for all obligations of the partnership without limit. Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all their assets. 

In addition, a partnership company can consist of limited liability members (individuals or organizations) who only contribute part of the capital and have limited liability and rights in the operation of the company.

Note: Partnerships cannot issue any type of securities.

# 4. Representative Offices

In contrast to JVs and 100 percent FOEs, a representative office (RO) is forbidden from conducting any revenue-generating activities. Rather, ROs are permitted to conduct market research, serve as a liaison with an overseas parent company and/or serve other supporting roles such as ensuring quality control, acting as a product showroom and helping to facilitate the execution of the contracts of the parent company. Unlike in certain other Asian countries, ROs in Vietnam are permitted to hire staff directly, both Vietnamese and expatriate.

# 5. Branch Offices

A branch office is the subsidiary of a parent company and does not constitute a separate legal entity according to Vietnamese law.

Unlike an RO, a branch office is entitled to do business in Vietnam, although the law prohibits it from carrying out commercial activities other than those stated in the parent company’s business license. If a branch conducts business in a conditional sector, it is only allowed to operate upon meeting the prescribed conditions.

To set up a branch, a parent company must have had conducted business in its home country for at least five years.

Issues you care?

☑ What is the yearly tax rate? The rate of income tax on your business be?
☑ There is a special certificate for your next business license company?
☑ Not how long it takes to complete the licensing company?
☑ Is there any legal requirements of Vietnam in ownership of your company?
☑ How to transfer money abroad from Vietnam? How much is the fee and how it works according to the laws of Vietnam?
☑ As with any investment incentives for your business?
☑ How do we take care of the financial statements monthly and yearly?
☑ How to Vietnam laws work in any trade dispute?

LHD Law Firm with 10 years’ experience advising foreign investors in Vietnam We will give you advice and clarify all your concerns and take care of your company license. Moreover, the LHD can help you with financial statements showing the Government of Vietnam and track your business activities and is always around to advise your business.
Price: upon request

Step 2: License Company in Vietnam

Any information you can get in step one is to operate your business better and to ensure that you will not do anything that conflicts with the laws of Vietnam. This second step, the company licenses, is the key to your business legally.
Depending on the type of business you are running, with pricing and different time frames received licenses for companies in Vietnam. All our packages include receiving the tax code and the seal of the company as well.

Price: from 200 USD / Vietnam company, from $ 1,500 Up/foreign companies.

Set up cpmpany in vietnam

Step 3: Office leasing contact

We service brokerage and leasing virtual office in District 1, you just raised your budget and requirements we will meet your needs.
In addition, we also support you on the internet registration, monthly tax reports; find employees, or other services in Vietnam.

This is just an overview to establish a company in Vietnam, we have a complete package to establish your company with reasonable prices; professional service, fast and great. Please contact us to get started.

Step 4: Publish the content of the business registration

After being granted the certificate of enterprise registration (ERC) and (IRC) , the investor shall disclose information about the enterprise on the national enterprise registration portal within 30 days, including the following information:

i, Business lines;
ii, List of founding shareholders and shareholders being foreign investors for joint-stock companies.

Step 5: Make a seal for the business

The enterprise has the right to decide on the form, quantity and contents of the stamp of the enterprise. The content of the stamp must show the following information:

☞ Company’s name (IRC and ERC)

☞ Business code.

☞ Tax code 

And two star...

After receiving the legal entity stamp and before using the business stamp, the enterprise must send a notice on the stamp of the enterprise to the business registration office for publication in the National Information Portal on the business registration.

Step 6: Notice of use of the seal

After having stamp made, investors submit notices on use of stamp forms to the Investment registration agency.After receiving the record, the Investment registration agency issues a receipt for the enterprise, publishes the notice of the enterprise on the National Business Information Portal and issues a notice of the posting, stamp samples of enterprises, branches and representative offices for enterprises.

Step 7: Open bank account (Open capital account and current account of the business)

Investors need to open two types of bank accounts for use Tax and Token (Tax Department check), namely the investment capital account to receive the investment amount and the transaction account for conducting daily transaction in Vietnam.

Step 8: The post licensing procedures

→ For the conditional business lines

Investors investing in conditional businesses lines as regulated in Appendix 4 of the Investment Law 2020 and Apply 1/1/2021, must apply certificate of business qualification, practicing certificates, professional liability insurance, legal capital requirements..vv. before conducting business in Vietnam.

⇒⇒⇒

LHD LAW FIRM is the Top law firm cosulting for Expat in Viet Nam
According to the rankings of Legal500 and Hg.org, LHD Law Firm is one of the 10 leading legal services in Vietnam for our consultancy of establishing a foreign-owned capital business in our country. With 10-years experience in the field and the office system throughout the country: Ho Chi Minh City, Hanoi, Da Nang, Vung Tau, etc., LHD Law Firm takes pride in our commitment to satisfy our clients as foreign investors in Vietnam.

Client's of LHD Law Firm

CLIENT'S OF LHD LAW FIRM

★ HOW TO UNDERSTAND THE STANDARD?

- Investors choose investment industries because each industry will be clearly defined in the WTO commitments, and then study additional specialized laws (for example, real estate operations must have $20 billion) to know the choices, accuracy, and investment requirements.

- After choosing a business line, switch to choosing the type of investment.

·      A common type of investment would be a limited liability company (one member and 2-50 members) or a joint-stock company.TYPE OF FOREIGN CAPITAL COMPANY ESTABLISHMENT

Generally, the choice of the type of foreign invested company establishment in Vietnam will have 3 main types.

1. Limited Liability Company (LLC) with one participant (For 1 individual investor or 1 investment organization)

 2. LLC with 2-50 participants (for 2 or more individuals or 2 or more organizations or 1 individual + 1 organization)

3. A joint-stock company with 3 or more shareholders (for 3 or more natural persons or 3 or more organizations or 1 natural person + 2 organizations...)

A limited liability company with 100% foreign investors is established

THE ONE MEMBER LIMITED LIABILITY COMPANY

MULTI-MEMBER LIMITED LIABILITY COMPANY

Multi-member Limited Liability Company with foreign capital

1.   Multi-member limited liability company   is a company with from 02 to 50 participants who are organizations or individuals. A participant shall be liable for debts and other property obligations of the company to the extent of the amount of capital contributed to the company, except for the case specified in Article 47(4) of this Law. Contribution of a participant may be transferred only in accordance with provisions of Articles 51, 52 and 53 of this Law.

2.   Multi-member limited liability company shall have legal status from the date of issue of the certificate of incorporation of the company. 

3.   A Limited Liability Company with two or more partners shall not be entitled to issue shares, except in the case of transformation into a joint stock company.

4.     A limited liability company with two or more participants may issue bonds in accordance with this Law and other relevant laws; private placement of bonds shall comply with the provisions of Articles 128 and 129 of this Law.

Article 74: The one-member Limited Liability Company

1.   A One-member limited liability company shall be a company owned by an organization or natural person (Called “the owner of the company"). An owner of a company shall be responsible for debts of a company and other property obligations within the limits of the authorized capital of a company.

2.   A One-member Limited Liability Company shall have a legal status from the date of issue of the Certificate of business registration.

3.   One-member limited liability company may not issue shares, except in the case of transformation into a joint stock company.

4.    A One-member limited liability company may issue bonds in accordance with this Law and other relevant laws; private issuance of bonds in accordance with the provisions of Articles 128 and 129 of this Law.

Establishment of a joint stock company with 100% foreign capital

Article 111. Joint stock companies

(1)  A joint stock company is a business that:

a) The share capital is divided into equal parts called shares.

b) The shareholders may be organizations or individuals; the minimum number of shareholders is 03, the maximum number is unlimited.

c) Shareholders are liable for debts and other property obligations of the company only within the limits of the amount of capital, contributed to the company.

d) The shareholders have the right to freely transfer the shares they own to other persons, except in the cases stipulated by clause 3 of Article 120 and clause 1 of Article 127 of this Law.

(2) A joint stock company has the legal status from the date of issuance of the business registration certificate.

(3) Joint-stock companies shall have the right to issue shares, bonds and other types of securities of the company.

When establishing a foreign corporation in Vietnam, what permits are required?

- Apply for provincial people's committee policy (except central cities)

- Investment Certificate (IRC)

- Business Registration Certificate (ERC)

- Business License → (If you have a retail business)

LHD Law Firm would like to give the essential documents required for a business license (BL)

1 #. Business License application file (BL)

Supplementing the business purpose of buying and selling goods and activities directly related to the buying and selling of goods is an adjustment to the business operating objectives, the dossier includes:

2 #. An investment examination dossier in accordance with the provisions of Government Decree No. 108/2006/ND-KP dated 22.09.2006, governing the implementation of several articles of the Investment Law.

The dossier for the issuance of a business license, as stated in Circular No. 09/2007/TT-BTM, shall include:

a)   An application for a business license shall be submitted on Form MD-1 issued with Circular No. 09/2007/TT-BTM.

b)   b) An explanation of the fulfillment of business conditions. The content of it shall be prepared in accordance with the appendix attached to this official dispatch.

c)   Written content of goods sales and activities directly related to goods sales: a clear indication of the type of activity - wholesale, retail, operating a retail store grouping of goods, commercial advertising; commercial inspection...

In the case where the project does not involve investment in the construction of facilities (not related to the construction of factories, installation of machinery and equipment for production), it is proposed to complement the sale of goods and services activities directly related to the sale of goods, in addition to the documents referred to in paragraphs 1 and 2 above, should be added to the file of the legal entity or appropriate papers confirming the capacity and experience of the owner of the investment in achieving operational goals.

Take note of the legal authority's licensing location.

- Investment certificate evaluated and issued by the Department of Investment of the Department of Planning and Investment at the provincial level

- Business registration certificate evaluated and issued by the Department of Domestic Enterprises, Department of Planning, and Investment

- Business license issued by the Ministry of Industry and Trade

ORDERING CONSULTING FOR THE CREATION OF A FOREIGN CAPITAL COMPANY

► Review the documents to be prepared, including LEGAL CONSULTATIONS (LAW, POLICY, TAXES, human resources...)

► After receiving the investment certificate, advice on how to obtain the business registration certificate.

► Advice and application for the Enterprise Certificate (ERC) and the Investment Certificate (IRC), in addition to the Business License issued by the Ministry of Industry and Trade (Business License)

► Consultation and production of a seal engraving and report using seal samples

► Regular legal advice after the opening of the business

► Legal advice about taxes, work permit, temporary residence card and child permit (if applicable)

► Support for the registration of trademarks, designs and inventions when required by businesses (LHD Law Firm is a representative of IP No. 146 the National Office of Intellectual Property NOIP)

SERVICES TO BE AVAILED OF AFTER SETTING UP A FOREIGN CAPITAL COMPANY IN VIETNAM

►Advice on CIT, PIT, and monthly, quarterly and annual tax returns

►Social insurance consultation, salary calculation (payroll)

►Consulting for personnel selection in Vietnam

►Trademark, Design, and Invention Protection Consulting

►Consultation on labor law, taxation, and contracts in Vietnam

► Virtual office rental for companies with foreign capital to provide invoice redemption. (⇒ should see)

CONTACT US FOR SERVICES

Currently, LHD Law Firm has 3 offices in 3 major cities in Vietnam: Ho Chi Minh City, Hanoi and Da Nang.→ Over 6,800 clients from 32 countries around the world have trusted the services of LHD Law Firm for 12 years.

10 BARRIER WE WILL REMOVE WHEN CLIENTS USE THE SERVICES OF LHD LAW FIRM

→ Vietnam is considered an attractive place to invest...Foreign investors that want to do business in Vietnam, on the other hand, must consider the following ten major obstacles:

·      First, under Vietnamese law, there are investment conditions for foreign investors. The 2014 Investment Law lists 267 conditional investment areas in Appendix 1, which are detailed in specialized laws governing specific industries or in international commitments, such as WTO commitments. Accordingly, there are restrictions for foreign investors to invest in Vietnam.

·      Second, foreign investors may be subject to a number of taxes, namely corporate income tax, value added tax, special consumption tax, and import and export tax. Taxation is one of the most cumbersome business processes in Vietnam, as it requires a significant investment of time and money from foreign investors.

·      Third, obtaining work licenses for foreign workers in Vietnam might be difficult. Generally, foreign workers who work for more than 3 months are required to obtain a work permit. The employer is responsible for these procedures. Employers must submit a yearly report demonstrating their need for foreign workers as part of the pre-employment procedures. A work permit only has a two-year validity period. After that, there will be conditions for renewing the license.

·      Fourth, intellectual property protection can be a problem when foreign investors plan to invest in Vietnam. Vietnam has access to various international treaties related to intellectual property. In addition, a wide range of intellectual property rights are recognized and protected under Vietnamese law, including copyrights, trademarks, industrial designs and inventions. In practice, violations of intellectual property rights are frequent and the procedures required to protect foreign investors' intellectual property rights can be extremely time-consuming.

·      Fifth, the new 2018 Competition Law, effective July 1, 2019, clearly expands its scope to include all practices that have or may have a restraining effect on competition in the Vietnamese market. There have been many changes from the old law, especially for foreign investors investing in Vietnam. Therefore, foreign investors doing business in Vietnam should pay attention to this issue in order not to violate the law.

·      Sixth, it is not easy to get a construction permit in Vietnam. Foreign investors have to work with many authorities, such as the Department of Construction, the Department of Fire Safety, the Department of Natural Resources and Environment and Urban Affairs.

·      Seventh, Vietnam's banking and financial industries are still tightly controlled. Foreign investors cannot establish a financial company in the form of a joint stock company through investment in Vietnam. In addition, a foreign investor purchasing shares in a limited financial company must not be a strategic shareholder, owner or founding member of any other credit institution in Vietnam.

·      Eighth, naturalization rights in Vietnam are limited. According to the Vietnamese Constitution, all land is the common property of all Vietnamese people.

·      Ninth, sustainable development is gradually gaining public interest. The Vietnamese government is drafting a law on environmental protection. Foreign investors are responsible for more activities, such as implementing environmental protection measures in the manner specified in their environmental impact assessment report or environmental protection plan. All large investment projects require an approved environmental impact assessment report, which increases the efforts of foreign investors.

·      Tenth (last), when disputes arise over investment projects during the investment process in Vietnam, questions about the applicable law and dispute resolution forum often discourage foreign investors. Getting it right can have a big impact on their case. Fortunately, foreign investors can turn to a law firm to help with all the above.

→ Steps to work with LHD Law Firm

Step 1: Get Legal Advice English - Vietnamese

Meet with an attorney. We get legal advice on the type of business best suited to your situation.

Step 2: Find office space and legal representation for your business (if there is no available LHD office)

Then find an office space so that your business not only has a place of business, but also a specific office address required by the government to apply for a business license. If you are not the legal representative for your business, you need to find a trusted partner.

Step 3: Apply for a business license (IRC, ERC, BL)

Prepare all the necessary documents and make sure that you meet all the necessary requirements before applying for a business license. Expect a 15-day waiting period for a Vietnamese-owned company and a 60-day waiting period for a foreign company.

Step 4: Legal and tax advice for foreign companies after establishment

Running your Vietnamese business now has the ability to hire employees and enter into business contracts. There are several things you need to do, such as obtaining your company seal, applying for a tax identification number, opening a company bank account, and publicly announcing your incorporation. Periodic duties include employee tax, accounting  report and insurance payments.

(In addition to legal advice, we also provide accounting services for companies with foreign capital for these companies)

→ Why Choose LHD Law Firm

Everything we do at LHD Law Firm is focused on assisting your business through our investment law expertise and local business experience in Vietnam.

So that your enterprise can grow and expand quickly and avoiding the costly traps that many start-up investors fall into at the hands of unscrupulous lawyers and agents.

How we accomplish this.

We offer the best investment legal service in Vietnam, as well as a wide choice of INDIVIDUAL AND ECONOMIC EFFECTIVE SOLUTIONS for starting a business in Vietnam or managing an existing one.

What we can do ...

Consulting on the establishment of foreign-owned companies in Vietnam, consulting on the establishment of Vietnamese factories and consulting on industrial production, sourcing Vietnam, supporting business registration, accounting, and tax compliance through information intelligence, low-cost operational setup, HR & admin, government liaison services, director services, country representation/management services for M&A, and much more...

→ Senior lawyer LAW FIRM

Lawyer: To Thi Thanh Thuy (email: all@lhdfirm.com) 

→ Lawyer specializing in advising on setting up foreign capital companies in Ho Chi Minh City

She graduated with a master’s degree in Commercial Law - City Law University of Ho Chi Minh City.

Consultancy language: English and Vietnamese

She is as one of the top 20 lawyers in Vietnam, highly rated by Legal500 and Hg.org → specializes in foreign investment, having realized more than 6800 projects in 15 years...

Lawyer: Nguyen Phuong Khanh (email: hanoi@lhdfirm.com)

→ Lawyer specializing in advising on setting up foreign capital companies in Hanoi

She has a master's degree in Commercial Law from Hanoi Law University.

The language of consultation is English and Vietnamese

A senior associate at LHD firm in Hanoi, she has 15 years of experience in foreign investment consulting, having implemented more than 2,466 projects in Vietnam.

YOU ONLY NEED TO PREPARE YOUR FINANCIAL AND BUSINESS STRATEGY; WE WILL SUPPORT YOU WITH A COMPLETE PLAN AND LEGAL WORK IN VIETNAM

In order to seek further advice or request service Setting up a Foreign company in Vietnam, Contract us by

☎: +842822612929 (Ho Chi Minh) or +842422612929 (Ha Noi) or +8402366532929 (Da Nang) 
Any support you may need, please contact us today via 
 
Email/ Google hangouts: all@lhdfirm.com 
iMessage | SMS | Whatsapp | Viber | Zalo | Call + 84 931 767 568 (Vietnam mobile)
FAQs

What form to set up a business in Vietnam?

In this article, we discuss the establishment requirements, common purposes, as well as the pros and cons for the following foreign investment vehicles:

  • Limited liability companies
  • Joint-stock companies
  • Partnership companies
  • Representative offices
  • Branch offices
  • Business cooperation contracts
  • Specific authorized projects

How to start a business in Vietnam as a foreigner?

Any business must be registered as a company to benefit from a legal existence in Vietnam. Registration provides a document certifying the existence of the company, called an ERC “Enterprise registration certificate.”

Foreign-owned companies, with the majority of whose capital is owned by a foreigner, further requires obtaining an investment certificate, called an IRC for “investment registration certificate.” The IRC is obtained by filing out an application with the government departments concerned (i.e. Department of Planning and Investment of Provinces/Cities)

Why start a business in Vietnam?

Vietnam has many advantages for foreign investment. First of all, it has  a large market of 90 million inhabitants and domestic consumption appears strong. The economy of this country is young and constantly open to internationalisation, welcoming more and more foreign investors. Growth continues at a high rate. One will also notice a Chinese investment shift towards Vietnam. In addition, the workforce is young, dynamic and inexpensive and the cost of living is low.

#4. Limited Liability Companies in Viet Nam?

100 percent FOEs and JVEs can be established as limited liability companies. In an LLC, members are only liable for the debts of the company to the extent of the capital contribution they have poured into the company.

There is usually no minimum capital requirement for foreign investors that intend to establish an LLC in Vietnam, although authorities will expect the investor to commit a reasonable amount of charter capital according to the scale and business scope of the project.

An LLC can consist of a single member or multiple members, but the total number of members cannot exceed 50. Investors can be corporations or individuals.

Note: An LLC cannot issue shares.

#5. Joint-stock Companies in Viet Nam?

FOEs and JVEs can also be established as joint-stock companies. A JSC can issue securities and bonds, so investors will often choose this form if they plan to go public in the future.

The JSC’s charter capital is composed of shares belonging to founding shareholders in proportion to the capital they have subscribed. There is no minimum requirement for the charter capital of the foreign investors.

A JSC is required to have at least three shareholders. There is no limitation on the maximum number of shareholders, nor on their nature – they can be individuals or institutions, Vietnamese or foreigners.

Representative Offices

In contrast to JVs and 100 percent FOEs, a representative office (RO) is forbidden from conducting any revenue-generating activities. Rather, ROs are permitted to conduct market research, serve as a liaison with an overseas parent company and/or serve other supporting roles such as ensuring quality control, acting as a product showroom and helping to facilitate the execution of the contracts of the parent company. Unlike in certain other Asian countries, ROs in Vietnam are permitted to hire staff directly, both Vietnamese and expatriate.

36 comment at post
  1. Visitor
    Rai
    26/06/2019

    Hello. We want open small trading license ( export import ) Fruits and vegetables , garments, footwear’s Kindly advise the legal rules Company registration set up charges. Thank you.

  2. Visitor
    Vila Hulk
    30/07/2018

    Dear Sir/Madam, Hi, Its Shirin from Iran Maxgroupint . Actually we want to set up a virtual office in Ho Chi Minh city . For this issue, we need to have below info: 1- Having independent and reliable information reports about Ho Chi Minh city firms 2- Reduce credit risk and improve knowledge about business in Ho Chi Minh city 3- Propose valuable information to make the right business decision 4- Reduce commercial and financial risk 5- Monitoring and benchmark market competitors in Ho Chi Minh city and find commercial insight, financial data, shareholders and directors,... 6- Publishing job vacancy on your local newspapers in order to employ a female staff, she should be known English well and has experience in field of business 7- Getting full authorization and banking from her 8- Not paying custom duty 9- Paying less Tax Fee 10- Consultancy on taxation and peculiarities of doing business in Ho Chi Minh city; 11- Consultancy on taxation of dividends of foreign participants (founders); Set up a company AND Working permit · Drafting and notarizing the documents, · Company name approval, · Payment of the registration fee, · Registering in the executive office; · Registering in the taxation office and social insurance offices, · Opening a bank account. Licensing · Consultation on the questions of licensing; · Preparation of all necessary documents and their assignment into a correspondent state structure; · Obtaining a license and handling it to a client. Please kindly let us have your comment and advise . Awaiting for your kind and soonest reply.

  3. Visitor
    Sergio. Mora
    30/10/2018

    I would like to open up a security company have many experiences experience as security guard what is the initial capital I have to put in so I can get a return on my investment 0992627z@gmail.com Sergio. Mora

  4. Visitor
    Tony Will
    22/10/2018

    How are you? Thank you for your patience and understanding. I'd like to have a short meeting (30-40min) with you to get to know LHD further more and discuss some questions as: Cooperate structure when having different investment partners Required documents estimated timeline Any outstanding points that need attention If possible this afternoon or Tuesday/Wednesday this week in HCMC. Looking forward to hear from you.

  5. Visitor
    James Pham
    01/11/2018

    Dear LHD Firm Thanks for infomation Great advice, Fred! I have a friend who got scammed because the person who she was dealing with (and thought was the owner – he produced copies of paperwork) wasn’t the real owner.

  6. Visitor
    Chris
    01/11/2018

    I have a question. How to legally protect yourself from greedy landlords once they have seen your business is successful and how to stop copycats stealing your ideas and using them for profit? Eg someone copying your business?

  7. Visitor
    Join
    01/11/2018

    hi, it is 2017 now. any update on this issue – starting a small coffee shop in ho cm city. Is it still so trouble-some and risky about being scammed?

  8. Visitor
    Vincen Tan
    01/11/2018

    My friend a legal citizen of Singapore wanted to open a Used Piano musical instrument shop or store in Viet Nam and would require importing via container (the pianos) from Singapore. We would like to ask what are the requirements. Thank you and kind regards. Vins

  9. Visitor
    Assems
    02/11/2018

    Set up a new company in Vietnam Hello, My name is Assem. Im present company based in USA. We are looking for a lawyer or company which will provide us services: 1) setting up a LLC in Vietnam 2) the first tax registration The business lines need to include the trading business and tourism development management consulting services. Please advise if you can help us with that. Thanks in advance

  10. Visitor
    Koki nin
    03/11/2018

    We want to Setup a company in VietNam with trading, pls send me the Quotation and Fee ? Thanks

  11. Visitor
    denis
    05/11/2018

    Hi, Denis Voight is my name from Uc. I live in VN just on 10 years. I have a Work Permit and Resident Card here in Dong Nhi. I work as an Native Speaking English tutor for a Language Center (and some private students) My income is enough for my living but not for accumulating wealth. I am 66 years old in good health In my 10 years here I have had 10 residential addresses!!! Some places i signed for I was not permitted to move into! You see people do not want to Register me with the police. It is the Law and makes things safer for me too - but... Resident Card expires next November 2019. I have had enough of the 'gypsy life' and will give up going home. However I prefer to live in Viet Nam, its safe, people are kind (well to me) even 3 cats moved into my house! BUT with out a place to stay.... A friend suggested I look at setting up a private Company (or even with a trusted family here) The Vietnamese Company can buy a land for its business (a house where I can live) I would be the Director. Could the company also heir me out to teach? I guess I would need to have a work permit being a foreigner employed by my company??? So my company would exist to provide Native Speaking people to work or tutor in English. Now some months i earn 5 mill VND, others 10 depending and occasionally 12 million. As I am retired in Aust I use a self funded 'pension' investment trust, It 'pays me' just under $2000 Aust per month from my investments, rent from my house, drawing on my Super Fund. while Becoming a Company will permit me to 'settle down, how will it effect my residency? If the Company does not succeed in hieing myself or others out what will happen, I mean if it generates no income! In effect can it be a means to retire here? Can the Company also 'invest' in other areas say buy and sell art, invest in friends business, even buy and later sell land! I would be lost complying with tax regulations requirements so look for a company to do that but at what costs? It may cost more than my retirement income would permit. The final question is what happens when some day I 'sell up' to return to Australia? Can my money be sent back? I will need it to pay for the retirement hospital! Or should I die while here how will the company be wound up and the funds returned to my estate to be distributed according to my Last Will ? Thank you for your consideration, it may not be practical but a close friend suggested I ask the professionals. Viet Nam is a good place to live regards denis

  12. Visitor
    David Bil
    22/11/2018

    We recently allowed our rep office license to lapse as we are changing to a Vietnam registered company. I was informed recently the max % of foreign owner was 35%. I have always been told by my people we needed to have majority shareholding by Vietnam national. 51% by Vietnamese and 49% by an Australian passport holder has been the plan. Hearing only 35% was possible was a surprise. Can you please advise what would be the steps and approx costs for a 100% foreign owned company. We are a small team with annual revenue of A$600k so we are by no means a multi-national. Hence a massive investment to set this up would not be possible. We are a software company and only have the offices in hcmc to hire development staff. We are up to date with all social insurances and taxes. Many Thanks

  13. Visitor
    Kevin
    19/12/2018

    Dear Sirs, We are investors from Hong Kong and we would like to set up a Cayman private equity fund investing in Vietnam real estate market. We plan to buy land with great appreciation potential, build residential or commercial building on the land and resale it in few years time. We have following questions would like to seek your advice:- Investment Registration Certificate (IRC) and Enterprise Registration Certificate(ERC) We understand that we are required to apply for Investment Registration Certificate and Enterprise Registration Certificate in order to establish a foreign owned entity in Vietnam. We have the following questions regarding to this issue:- 1. Can we set up a wholly foreign owned enterprise in real estate industry? 2. We understand that real estate is a conditional sector. Is there any foreign ownership limit for wholly foreign owned enterprise investing in Real estate? 3. Which corporate structure and company forms do you recommend us to use in Vietnam for our PE fund? Should we use joint stock company? Or a multiple member limited liability company? Or other company forms? We would appreciate if you can give us some reasoning behind your recommendation as well. 4. What other licenses do we need to apply for in order to conducting Real Estate business? How long does it take for applying such license? Land ownership restriction for foreign enterprise We understand that foreign invested enterprises cannot receive assignments of land use rights from existing land users except by way of capital contribution from a Vietnamese enterprise or as part of the purchase of residential housing or transfer of an entire real estate project. 5. Is our understanding correct? If yes, would it be possible if one of our partner (Vietnamese) set up a Vietnamese enterprise and use enterprise to acquire the land and set up a joint venture with us? What if our PE fund consist of a Vietnamese General partner, would this help us acquiring land use rights? 6. According to your experience, how can we overcome this limitation and acquire land usage right from existing land users? Can use appoint our Vietnamese partner to hold the land on behalf of us and sign a trust agreement with our Vietnamese counterpart and become the beneficial owner of the land like in common law countries? 7. In addition, what other ways can we acquire land for residential or commercial purpose? Transfer of Funding in and out of Vietnam We understand that Vietnam has foreign exchange control. 8. Can you explain on the process of transferring fund from our offshore bank account into Vietnam and how can we remit our revenue to our offshore bank accounts after exiting the current projects? Is there any restrictions that we need to aware of? 9. For our fund raising process, we often obtain initial drawdown and capital commitment from our limited partners. But we do not ask our limited partners to deposit the remaining commitment until we identify project and make capital calls. Can we transfer our funds into Vietnam via different phrases? Or is it compulsory for us to have the whole capital payment ready when we apply for IRC or ERC? Bank loans We understand that we can obtain loan from onshore and offshore lenders. 10. Is there any restrictions or important regulations that we should be aware of when obtaining loan for our fund? Taxation 11. What kind of tax will be applicable to our fund? 12. Is there any corporate structure that we can used for tax planning purpose? Costs 13. Can you advise on your costs and timeline for setting up our Vietnam investment vehicles, applying the IRC, ERC and other relevant licenses and any relevant advice for our PE fund? Thank you for your patient and we look forward to your reply. Best regards, Kelvin Co-Founder of Vhub

  14. Visitor
    Kilin
    02/01/2019

    I want set up a company in Viet Nam with manor it services ! Help send to us the Quotation

  15. Visitor
    Kilin
    02/01/2019

    I want set up a company in Viet Nam with manor it services ! Help send to us the Quotation

  16. Visitor
    Kilin
    02/01/2019

    I want set up a company in Viet Nam with manor it services ! Help send to us the Quotation

  17. Visitor
    Kilin
    02/01/2019

    I want set up a company in Viet Nam with manor it services ! Help send to us the Quotation

  18. Visitor
    Kilin
    02/01/2019

    I want set up a company in Viet Nam with manor it services ! Help send to us the Quotation

  19. Visitor
    Tesol
    26/02/2019

    Good Morning LHD Hooe you well. I would like to start an English Language centre in Saigon,Vietnam. I already have the premises,i just need to apply for the Business license and also get some insight about the laws on owning my own company and rights for me to work in Vietnam on Business License? Also regarding taxes,etc. Can you please give me all aspects and information!!!

  20. Visitor
    musa idris ibrahim
    02/03/2019

    I am looking for establishing a limited liability company in Vietnam on wood logs processing. I am doing timber business, teak and afzelia Africana wood logs, in South Sudan now.

  21. Visitor
    Arel
    19/03/2019

    Hi, I am planning to secure a license (100% Foreign Own) for a small Day Care English Language Center. If possible that I could include on business scope like of wholesale, retail Sale, Export

  22. Visitor
    Ceo Seyano
    21/03/2019

    Dear LHD Law Firm I have received the go-ahead from a client, a niche German med tech company, to do the groundwork for them to set up an own subsidiary in Vietnam. They already have an own rep office in HCMC. I would like to see if your firm can assist my client to set up an own subsidiary in VN. Specifically, I am looking at the following for my client: 1. Closure of their representative office 2. Setting up an own 100% subsidiary responsible for importation, marketing/sales, wholesaling 3. Requirements and estimated costs of the above I will be in HCMC from 25-27 March and would appreciate to meet you. In the meantime, can you kindly share your company’s profile and presentation please, including also work you have done in healthcare? Thank you

  23. Visitor
    Jenifer
    02/04/2019

    Hi, I came across your company from the website. As I will be in Hanoi next week, I would like to check if I could meet with someone at your office for the above matter. I would like to find out more on the types of set-up possible for foreign companies, the applicable taxes, time for new company set-up registration and the fees that your company charged for these services.

  24. Visitor
    Liu Xin
    22/05/2019

    Dear LHD Law Firm We have a company in China 1,Can we establish a limited liability company with 100% foreign investment funds in Vietnam under the name of Shenzhen Company of China? Need any investment projects? The conditions which related to the establishment of the company (such as regulatory funding requirements, bank deposits, rental contracts, etc.), time of registration company, management regulations and matters needing attention in the process of operation? Whether we establish a limited liability company with 100% of foreign investment funds under the name of our Shenzhen company in Hải Phòng Anyang Industrial Zone (this industrial zone is an industrial zone which cooperated by Shenzhen and Vietnam)has additional preferential policies? How long does it take to register a company and complete opening a company bank account? 2,As we mentioned, we have Hongkong company as well, we want to know whether there are some differences between 100% of foreign investment funds under our Shenzhen company and 100% of foreign investment funds under our Hongkong company? Which one can get more benefits and preferential policies? How long does it take to register a company and complete opening a company bank account? 3, We are also considering that Whether we can register this company by a Vietnamese and then we acquiring corporation with 100% foreign captical? Is there any advantage in this terms of conditions and schedule? Is there any additional risk? Do we need an investment project when acquiring by 100% foreign captical? If yes, how about the relevant conditions, schedule, operation management and points of attention? 4, At present, there is no production involved, but we are also considering that we may will build an assembly factory in the future in Vietnam, Whether we can set the office and warehouse in this industrial zone? Whether we can get some preferential policies in this industrial zone or in this province? 5, We want to seek advice of the appropriate way for our company to make business in Vietnam? 6, Whether your company has the person who can speak Chinese well for better communication? We are looking forward to receive your reply related to the initial consultation and the offer of company establishment consultation. We plan to visit your office to get the detail consultation and implementation by the end of May. Thank you!

  25. Visitor
    Natraja
    22/05/2019

    i am an indian national married to a vietnamese. if i want to setup a 100% foreign owned business in vietnam, what would be the minimum requirement on capital? and if i do it as partnership with my wife, what shud be the min capital?

  26. Visitor
    Mark Beaucy
    08/10/2019

    Good Day, I would like to enquire about the fees related to registering a 100% Foreign-Owned LLC (Trading) using your services and expertise. We are in the Fashion Supply Chain industry so the main role of the registered business in Vietnam (HCMC) would also need the appropriate licenses for: Import of Fabrics Export of Finished Garments Travel for work permit, opening of bank accounts, etc are not a problem as well. Please do let me know if you need more information. Many Thanks!

  27. Visitor
    Mark lee
    15/10/2019

    I'm am an indian national married to a vietnamese. if i want to setup a 100% foreign owned business in vietnam with scope of business import and export -> trading, what would be the minimum requirement on capital? and if i do it as partnership with my wife, what shud be the min capital?

  28. Visitor
    ALex Pin
    17/01/2020

    I AM AN UKRAINIAN ADVOCATE AND AN OFFICIAL REPRESENTATIVE OF UKRAINIAN INVESTORS IN VIETNAM. WE PLAN TO REGISTER FEW COMPANIES IN HO CHI MINH, AND LAUNCH A PROJECT - LENDING TO THE POPULATION. AS PART OF THE PROJECT, WE NEED TO GET ALL THE NECESSARY APPROVALS AND PERMITS IN VIETNAM. BELOW I HAVE LISTED THE NECESSARY STEPS FOR COMPLETING THE TASK: 1)CREDIT BROKER INCORPORATION (FOUNDER 100% FOREIGN LLC) PREPARING THE DOCUMENTS REQUIRED FOR CB INCORPORATION 1. PREPARING CB DOSSIER 2. PREPARING DOCUMENTS OF LEGAL REP 3. GETTING THE INVESTMENT REGISTRATION CERTIFICATE FOR CB (CB IRC) FROM THE DEPARTMENT OF PLANNING AND INVESTMENT (DPI) OF HO CHI MINH CITY 4. SUBMITTING CB DOSSIER TO DPI 5. GETTING THE RECEIPT OF APPLICATION FROM DPI 6. PREPARING THE DPI REQUEST FOR APPROVAL OF MINISTRIES: · INFORMATION AND COMMUNICATIONS, · INDUSTRY AND TRADE 7. GETTING APPROVALS AT MINISTRIES 8. ISSUING CB IRC BY DPI 9. GETTING ENTERPRISE REGISTRATION CERTIFICATE FOR CB (CB ERC) FROM PEOPLE’S COMMITTEE (PC) 10. PREPARING APPLICATION FORM FOR CB ERC 11. SUBMITTING CB DOSSIER TO PC, ISSUING CB ERC BY PC 12. GETTING CB TAX CODE 13. GETTING CB COMPANY SEAL 14. PROVIDING CB INITIAL TAX REPORTING 16. GETTING FOREIGN CONTRACTOR TAX FOR CB (CB FCT) CODE FROM TAX DEPARTMENT 17. MAKING THE CB RED INVOICE BOOK 2) DEBT COLLECTION COMPANY (FOUNDERS: 49% FOREIGN LLC, 51% 3 LOCAL INDIVIDUALS - THE SAME PROCEDURE AS CREDIT BROKER 3) POWN SHOP INCORPORATION (FOUNDER: DEBT COL COMPANY) 1. PREPARING THE PS DOSSIER 2. GETTING ENTERPRISE REGISTRATION CERTIFICATE FOR PS (PS ERC) FROM PEOPLE’S COMMITTEE (PC) 3. SUBMITTING PS DOSSIER TO PC 4. GETTING THE RECEIPT OF APPLICATION FROM PC 5. ISSUING PS ERC BY PC 6. GETTING PS COMPANY SEAL 7. PROVIDING PS INITIAL TAX REPORTING 8. OPENING PS BANKING ACCOUNTS (CURRENT, BUSINESS CARD) 9. GETTING SECURITY CERTIFICATE FOR PS (PS SC) FROM POLICE 10. PREPARING THE PS SECURITY CERTIFICATE DOSSIER 11. SUBMITTING PS SECURITY CERTIFICATE DOSSIER WITH POLICE 12. GETTING THE RECEIPT OF APPLICATION FROM POLICE 13. PASSING BY THE PS OFFICE CHECK BY POLICE 14. GETTING SC FOR PS (PS SC) FROM POLICE 15. GETTING FOREIGN CONTRACTOR TAX FOR PS (PS FCT) CODE FROM TAX DEPARTMENT 16. MAKING THE PS RED INVOICE BOOK QUESTIONS: - HOW MUCH TIME DO THESE PROCESSES TAKE FROM THE MOMENT OF SUBMISSION? - PLEASE GIVE AN ANSWER ON THE TIMING IN THE CONTEXT OF EACH PROCESS? - WHAT IS THE APPROXIMATE COST OF YOUR SERVICES FOR THE IMPLEMENTATION OF THESE PROCESSES?

  29. Visitor
    Mostafa Badr
    21/04/2020

    Hello, My boss is thinking about starting up an import/export company based in Vietnam. We would like to know if you could help us know more about the registration process and the paperwork. Thank you

  30. Visitor
    Chan
    09/06/2020

    Dear Sirs, We are considering two options of establishing company: 1. Establish Subsidiary under current Vietnam Office, location in Ho Chi Minh City. Business in airfreight, with little portion of sea freight. The current Vietnam office is a joint venture, 55% owned by us and 45% owned by the local partner. Our question is: - Does the taxation and Profit & Loss are independent from parent company? Or count under parent company? - To sign the official document, does it require all shareholder present at the same time? Is it acceptable if we sign the document separately and send via courier? - set up lead time and estimated cost 2. Establish foreign owned company, location in Ho Chi Minh City. Business in airfreight, with little portion of sea freight. Our question is: - To sign the official document, does it require all shareholder present at the same time? Is it acceptable if we sign the document separately and send via courier? - set up lead time and estimated cost If we hire the manager locally, what is the social security and medical insurance in % we need to provide? While if we provide the housing allowance, the amount will be calculated for personal income tax or corporate income tax? Please let us know the prelima

  31. Visitor
    Katie Nguyen
    09/06/2020

    Hi Sir/Madam, This is Katie from Sofeast. We are planning to set up a company in Ho Chi Minh City and hire 1 project manager, to start our services operations there. We’ll need advisory service at the start and probably along the way. Here is the situation: · We are a Hong Kong company with subsidiaries in mainland China. Owners are 2 French with a working visa in mainland China. · Our customers are foreign companies buying products from Asia. · Our activities in mainland China are (1) contract manufacturing on various hard goods including electronics, (2) import & export of materials and related project management, (3) consulting services. · More and more of our clients ask us about Vietnam, so we need to have a presence there very soon. Preferably in HCMC. · The plan would be to start with a small office and 1 employee, providing consulting services. It might grow quickly. · Within 6-12 months, we might start to do import & export of materials and manufacturing. It will have to be within the scope of activity of the company. · We also would like to know whether we can widen our business scope for example, electronic products in general + pet products + toys · We are planning to hire a lady who happens to have some experience in filing the paperwork for setting up the company, but we’d need a lawyer to set the action plan first and then a lawyer or a paralegal to review all this along the way. · The French CEO never have plan to relocate permanently to Vietnam. Please let us know if your firm can help. Thank you. Katie Nguyen

  32. Visitor
    Daniel
    17/06/2020

    Dear Sir, We are interested in setting up a company Wholly foreign (HK)-owned enterprise (WFOE) in Vietnam’s city of Ho Chi Minh City District 1 and it will be subsidiary of AdTech Innovation Ltd. in Hong Kong. New company in Vietnam is an innovative technology-driven company and a provider of cloud-based software-as-a service (SaaS) solutions for local and regional businesses and agencies in maximizing digital marketing performance. We also provide performance-based digital marketing services to marketers in Vietnam. Moreover, in order to enhance our cloud-based AI powered tools, we will setup in-house R&D department to develop features and functions of the existing software and also develop new software in Vietnam. Our businesses in Hong Kong: (1) AdTech Innovation Ltd. Industry: IT AdTech Innovation Ltd. is an innovative technology-driven company and a provider of cloud-based software-as-a service (SaaS) solutions for local and regional businesses and agencies in maximizing digital marketing performance throughout Hong Kong, the PRC, Taiwan and Thailand. Websites: https://www.adtechinno.com/ (2) AsiaPac Net Media Ltd. Industry: Digital Marketing / Online Advertising A digital marketing agency head-quartered in HK, providing performance-based digital marketing service to marketers. Website: https://www.asiapac.com.hk/ We are looking for information about the followings, it would be grateful if you can advise on them. Many thanks! - What are the requirements and company formation procedure, how long does it take to incorporate the company? - Do we need apply for any license to operate a business of (1) IT & (2) Digital marketing / online advertising in Vietnam? How to apply it and what is the procedure, how long does it take to apply and which department shall I contact? - Can we request the financial year to end on 31 March? - Does the Vietnam government launched any promotion policy for supporting Wholly foreign (HK)-owned enterprise (WFOE) in Vietnam? E.g. tax promotion - Could our new company fulfil incentives for Research and Development? - How much do we set up a company wholly foreign (HK)-owned enterprise (WFOE) in HO Chi Minh City District 1? Best regards,

  33. Visitor
    Paris Tris
    25/09/2020

    Hi, I have some questions regarding licensing for a wholly foreign-owned LLC. They are: 1) Is more than one Licence is permitted upon incorporation (ie. Import / Export and E-commerce)? 2) Does E-commerce include/allow an online education business? Please email responses and we can talk further. Thanks,

  34. Visitor
    Green
    29/12/2021

    Hi LHD Law Firm We are from Malaysia and have been referred by Get from ... International Sdn Bhd to engage your service. Currently, we have a client that would like to setup a company in Vietnam As such, we would like to get a quotation from you on incorporation including the local regulation requirement on foreign owned entity in your country. Below are information that our client have communicated and would want to clarify before they proceed with the incorporation as follows: Was there any restriction in setting up peer-to-peer (“P2P”) company in Vietnam which includes licensing requirement, minimum paid up and any other requirement; What is the % of shares that the local shareholder required to hold for a foreign entity; Any local director requirement in Vietnam, if yes please include a quote on nominee director; and The company is looking into transferring shares time to time, will you be able to provide this service seamlessly?. Please do not hesitate to contact me at +6012-9274455 (Whatsapp) if you have any further clarification required.

  35. Visitor
    Zhao Mei
    29/12/2021

    Hi there, could you please explain your needs and goals for setting your business in Vietnam? So I can assist you accordingly. Kindly buzz me if you need any advice and help on this :)

  36. Visitor
    Verron
    29/12/2021

    How do I start a business in Vietnam as a foreigner? Originally Answered: How do foreigners open a company in Vietnam? Is is VERY difficult for a non-national to start a company in Vietnam & the rules & regulations attached to it are “mind-blowingly” convoluted & complex. Do your due diligence & research, research, research, then do some more research…! Then plan, plan, plan & do some more planning. If you don’t speak the language, you are increasing the difficulty even more. If you are not good at networking, forget it. Whereas in the west it’s; “Lets do some business & along the way we’ll get to know each other” “In Vietnam it’s, lets get to know each other, then maybe well do some business” Get used to the term “facilitation” payments In regard to setting up, there are different rules that apply to different types of companies/industries. In some cases certain business types are not permitted if you are a foreigner & in other cases it is a legal requirement to have a Vietnamese business partner, who has to have 51% ownership. Also if you intend to send profits off-shore it gets more complicated. Salaries paid to a foreigner attracts about a 30% tax rate, taking dividends from a company will also attract a higher tax rate Creating a company in Vietnam is way more complex than in countries like the US, Australia or Singapore. Vietnam requires multiple layers of restrictions, verification and review. Please heed my words; you either have to be one of the bravest entrepreneurs on the planet, the type of person that can overcome ANY & EVERY obstacle known to man, or you are certifiably insane. I have listed some of the general requirements below, this is by no means an exhaustive list It may take up to 3 months for the creation of a new foreign-owned company. In practice, much of this time may be required to get the necessary documents. Certain documents will need to be authorized both in your home country and locally in Vietnam. A typical foreign entrepreneur will seek assistance to identify the relevant type of company to register, gather and translate any documents, and engage with authorities throughout the application process. Foreigners also tend to need assistance to open the required bank accounts. Company registration costs depend on the specific type of business you are opening in Vietnam. The Department of Planning and Investment will review your application and will consider the capital necessary for the business to be established. The minimum capital requirements vary depending on the type of business you intend on opening. Some businesses may require licenses to operate. Total costs can vary, but for a foreign entrepreneur seeking a new software development company, assume you’ll incur up to $5,000 USD in fees, with a minimum capital value of $10,000 USD. This capital needs to be settled into a bank account in Vietnam and you can then start using it for company expenses once the registration is complete and local bank accounts have been set up. Taxes Your startup company in Vietnam will need to pay several types of tax: Business license tax. This is charged right after your company is registered, and then paid on an annual basis thereafter. For a typical small-capital company, the business license tax is 2m VND per year ($85 USD). Value Added Tax (VAT): generally assume 10% on most transactions, but the actual rate depends on the product or service your company is using. This can be debited and credited. Company income tax (CIT): the tax rate is 20% on company profits, but there are some exemptions. For example, software development companies may gain an incentive tax rate and there is discussion of lower tax rates for SMEs. If you’re purchasing services from a foreign contractor, you will also need to consider Foreign Contractor Tax (FCT). The specific tax rate depends on the service and your company will pay directly to the government on behalf of the foreign contractor. Don’t forget labor taxes paid by employers. Each month, an employer is required to pay several forms of social security related to its employees. Social insurances are 17.5% of their gross monthly salary. A further 3% is charged for health insurance, 1% for unemployment insurance and 2 % for trade unions. Finally, your employees are also obligated to pay personal income taxes and insurance. These are separate and additional to the labor taxes paid by the employer (mentioned above), but there can be an expectation by employees that the company will also bear the cost of their obligations. Employees will often negotiate on the basis of a net pay. While this attitude is changing, beware of this expectation during salary negotiations. I do hope this helps…?

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