Starting a company with foreign investment in Vietnam

 02.05.2024

Starting Limited Liability Company in Vietnam

Starting a company in Vietnam

Vietnamese law about foreign investment and business creation allows foreign citizens or entities to take part in a Vietnamese limited company as a founder.

The process of starting is the same for all types of companies
- the first step is to establish the company with a Vietnamese founder.
- the second step is to transfer their rights, obligation, and share capital to foreign investors.

 

THE COMMON POINTS FOR ALL TYPES OF LLC IN VIETNAM

❖ Legislatively, the amount of authorized capital is not regulated, but practice shows that authorized capital of less than the indicated amounts entails a refusal to issue work permits
❖ The members are responsible for the limits of their share in authorized capital
❖ Each company starting in Vietnam must pay:

  1. Annual Excise tax at the rate of 2 000 000 VND (90 USD) /per year;
  2. USB flash drive for registration in the tax department and submission of tax reports - 2 500 000 VND (110 USD) /per 18 months;
  3. If you don’t have a trusted Vietnamese citizen who will allow personal information for the company registration, we can provide such a person. The cost for this starts from 300 USD /per year, depending on his shares.

 

 

Our experts will advise you on all issues related to starting your own company in Vietnam. This will save you time and money.

You can book a consultation by following the link below.

Starting a company in Vietnam

Book a consultation with an expert on starting production in Vietnam

 

Prices and terms for opening a company in Vietnam

depend on the amount of share in the authorized capital of foreigners:

 

I. Company in Vietnam from 1 to 49% authorized capital of foreign investor

Opening a company in Vietnam

- The number of members of the company is no more than 50 by the law, but in practice is no more than 5 persons;

- Minimal authorized capital for each member is 12 000 USD. In order to make a capital contribution, foreign investors have to open a personal bank account in any Vietnamese bank. We offer Techcombank, Vietcombank, VP bank. These are the most convenient banks for this purpose. If you cannot carry out making a capital contribution by yourself for any reason, we can request to make this procedure using borrowings (about 3%);

- Foreign investors can be a director with authorized signatories in the bank;

- Participation of Vietnamese co-founder in economic activities of the company  - A Vietnamese member is a rightful participant of the company and he has the right to take part in the economic activities of the company, any further action with the company you may perform only if there is his signature in the Board of Directors Record. Our company provides a trusted person who will not claim to take part in the economic activities of the company. In any case, we will prepare the necessary documents for the total safety of foreign investors;

- The term of registration company in Vietnam - 15 working days;

- Types of business without the necessity of additional permissions:

  • Hospitality business (you can build or rent a hotel);
  • Restaurant, cafe, catering (without alcohol);
  • Travel agency (only sales tours of other companies);
  • Advertising;
  • Activity is connected with the IT sphere;
  • Consulting services are not connected with manufacture;
  • Production and sales of wheat products.

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The company with a share of foreign investor in authorized capital no more than 50% don’t need to get permission for foreign investment and some additional activities. If you need additional activities they're cheaper and quicker.

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There is just one drawback, but it’s significant - Vietnamese partners can interfere with the business. For this reason, our company prepares a set of documents for the safety of foreign investors. As such, this drawback is eradicated. Nevertheless, there are skeptics who don’t like Vietnamese participation. 

 

The price for registration of the company is from 700 USD

 

II. Company in Vietnam from 50 to 99% authorized capital of foreign investor

Starting your business in Vietnam

- Number of members of the company is no more than 50 by law, but in practice are no more than 5 persons;

- Minimal authorized capital for each member is 12 000 USD. In order to make a capital contribution, foreign investors have to open a personal bank account in any Vietnamese bank. We offer Techcombank, Vietcombank, VP bank. These are the most convenient banks for this purpose. If you cannot carry out making a capital contribution by yourself for any reason, we can request to make this procedure using borrowings (about 3%);

- Foreign investors can be a director with authorized signatories in the bank;

- Participation of Vietnamese co-founders in the economic activities of the company - If a Vietnamese member has shares of 10% or more, they are entitled to vote at the meeting of the Board of Directors and cancel the decision. If a Vietnamese member has shares of less than 10%, they cannot take part in the economic activity of the company;

- The term of registration LLC in Vietnam - 35 working days. Companies with shares in foreign investment of more than 50% in authorized capital must get permission for its contribution;

- Types of business without the necessity of additional permissions:

  • Hospitality business (you can build or rent a hotel);
  • Restaurant, cafe, catering (without alcohol);
  • Travel agency (only sales tours of other companies);
  • Advertising;
  • Activity is connected with the IT sphere;
  • Consulting services are not connected with manufacture;
  • Production and sales of wheat products.

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You are the sole owner and managing director of the company.

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Higher price and getting additional activities and long term.

The price for registration of the company is from 1100 USD

 

III. Company in Vietnam of 100% authorized capital of foreign investments

Doing business in Vietnam

The number of members of the company is no more than 50 by law, but in practice are no more than 5 persons;

- Minimal authorized capital for each member is 20 000 USD. In order to make a capital contribution, foreign investors have to open a personal bank account in any Vietnamese bank. We offer Techcombank, Vietcombank, VP bank. These are the most convenient banks for this purpose. If you cannot carry out making a capital contribution by yourself for any reason, we can request to make this procedure using borrowings (about 3%);

- Foreign investors can be a director with authorized signatories in the bank;

- Participation of Vietnamese co-founder in the economic activities of the company. Vietnamese member does not participate;

- The term of registration - 45 working days. Companies with shares in foreign investment of more than 50% in authorized capital must get permission for its contribution;

Types of business without the necessity of additional permissions:

  • Hospitality business (you can build or rent a hotel);
  • Restaurant, cafe, catering (without alcohol);
  • Travel agency (only sales tours of other companies);
  • Consulting services are not connected with manufacturing.

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You are the sole owner and managing director of the company.

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Higher price and getting additional activities and long term.

The price for registration of the company is from 1500 USD

 

The team of LEADERSHIP TSC will help you puzzle out the "Road Map" of Vietnamese business.

 

Contact us now and get a proposal for starting company in Vietnam.