1. These are issues which are need to be considered and prepared before setting up company in Vietnam
• Choose the type of business entity. According to the Law on Enterprises, there are five common types of business entities at present: business cooperation contract, joint stock company, partnership company, limited liability companies (multi – member limited liability companies and single-member limited liability companies), public - private partnership. This decision plays an important role in making or breaking your business ideas in practice. Therefore, try consulting experts before you make decision. The number of members (shareholders) varies according to the kind of business. Based on that number, company owners prepare notarized copies of IDs or visas. The two most common legal entity types to set up in Vietnam are a limited liability company (LLC) and a joint-stock company (JSC).
• Choose a name for your company. The name should be short, easy to remember and pronounce. It is not allowed to resemble other companies’ names which are available. Learn more information about available companies’ names at “National business registration portal” (dangkykinhdoanh.gov.vn).
• In addition to type of business entity and company name, there are also other issues needed to prepare carefully are choosing a place for your headquarter, determining authorized capital for your business, selecting a title for company’s representative in law and choosing a legal industry to register.
2. Vietnam regulations on setting up a foreign company in Vietnam:
• Location of NewCo: Investor is required to provide accurate address of location where the company is based. Also, competent authority shall require investor to provide physical lease contract of location and other related documents of the location.
• Allowed foreign ownership: In Vietnam, the World Trade Organization (WTO) agreements regulate the allowed foreign ownership in different business lines. However, if there are no WTO agreements nor local laws regulating foreign ownership in that business line, you will need a Ministry-level approval to set up your company.
• Minimum capital requirement: Vietnam Law does not imply a minimum amount of investment capital to setup a company operating in your company’s field. However, the foreign investor must prove that amount of investment capital is sufficient to run NewCo. In order to prove the sufficient financial capacity before setting up company, it is required the investor to provide bank statement certifying balance in the bank.
3. The procedure to set up a new foreign company in Vietnam:
You can consider in this link: How to set up a new foreign company in Vietnam?
4. You will need legal advice from a law firm, such as HD Law. We can help you to get information about:
• Which industry should you invest in now?
• Is there any regulation or change that might affect your business?
• Which business areas are the Vietnamese Government encouraging foreign investors to engage in?
• Which kind of company should you start?
- Vietnamese company
- Joint stock company
- Wholly foreign-owned company
- Foreign invested company
- Joint Venture company
• Which business that foreigners cannot own or to be part owners of in Vietnam?
• How much is the minimum fund for your business?
• What is the yearly tax rate? What is the rate for your business income tax?
• Is there any special certificate for your business beside the company license?
• How long does it take to finish the company license?
• Are there any requirements in the Vietnamese Law about your company owner?
• How to transfer money from Vietnam to overseas? How much is the fee and how does it work according to Vietnamese Law?
• Is there any investment incentive for your business?
• How do we take care of the monthly and yearly finance reports?
• How does Vietnamese Law work in any commercial dispute?
This is just an overall look for setting up a new foreign company in Vietnam, we are one stop service provider to set up your company with a reasonable price; professional, quick and great service.
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