Setting up foreign company in Vietnam

The investor would be a legal person (company) and the company is registered in French, a member of the European Union.

Can you please tell me:

    What are the establishing fees of the company in Vietnam (including all necessary licence fees, bank account registrations, requirements for the share capital, etc.)?
    What are the annual maintenance fees of the company (minimal accounting fees, local director fees, etc.);
    How long does it take to establish a company in Vietnam?
    Is the presence of the shareholder in Vietnam during establishment of the company is necessary?
    What is the price for Your services?

Answer:  I am Lawyer of SB Law who was entrusted to provide you legal advice for establishing 100% foreign owned company in Vietnam. find herewith our answers here under:


Setting up foreign company in Vietnam


    What are the establishing fees of the company in Vietnam (including all necessary licence fees, bank account registrations, requirements for the share capital, etc.)?

– Government fees for granting Certificate of Investment Registration: Free

– Government fees for Company Registration: 1USD

– Government fees for obtaining Seal Sample: 50 cents

– Fees for opening bank account: Depending on policy of each bank, they may require you to deposit a minimum amount of 100USD upward.

– Share capital: Except for several conditional investment sectors such as real estate business, tourism, MLM, banking etc which requires for minimum capital amount, Vietnam Government does not impose minimum rate of investment capital. In this case, Investor shall be liable to account appropriate amount of capital required for running their proposed business activities in Vietnam.

– Business license tax: From 50USD to 150 USD/year, depending on specific amount of registered investment capital.

    What are the annual maintenance fees of the company (minimal accounting fees, local director fees, etc.);

– For maintaining operation of the company, you shall have to pay Business License Tax: 50USD to 150 USD/year, depending on specific amount of registered investment capital.

Setting up foreign company in Vietnam


Foreign investors set up a foreign company in Vietnam often bear some of the costs as follows:
1.Cost of photocopy and authentication of legal documents (i.e passport, certificate of incorporation): at least of VND100,000.
2.Cost of registration for setting up foreign company in Vietnam: VND 200,000.
3.Cost of posting up the contents of foreign company being set up in Vietnam: 300,000 VND.
4.Cost of seal: VND400,000.

– Accounting fee: It is optional. Generally, your company can consider hiring an accountant for support. Otherwise, your Company can have a professional accounting company to assist. The fees for accounting works shall very much depend on scale of your business activities, number of transactions as well as amount of your revenue.

– For local director, you can consider hiring a local director in Vietnam. Wage/Salary paid to Local Director shall depend on specific negotiation between two parties.

    How long does it take to establish a company in Vietnam?

– For a construction company, it shall take you about 01 month from submission of application dossier to the competent authority to complete all.

    Is the presence of the shareholder in Vietnam during establishment of the company is necessary?

– No.

    What is the price for Your services?

– Our price for setting up a foreign invested company in the field of construction service is 4,230USD. The fee is exclusive of 10% VAT, cost for translating your documents from English into Vietnamese (10USD/150 words), and actual cost for accommodation and traveling if you intend to locate your company outside Hanoi or Ho Chi Minh City.

Vietnam is one of the best foreign investment market. Establishment an export – import company in Vietnam is forecast to have great potential, which is considered as the top prior decisions of many foreign enterprises.

Work permit for foreigner in Viet nam



According to Fitch - an international credit rating, Vietnam is ranked as one of the most favorable countries with medium-term potential growth in Asia. With the advantage of a 90-million-people market with the developing and intergarting economy, the capital source of foreign direct investment into Vietnam has increased 4 times in the last decade, the current is more than $8 billion.

Moreover, Vietnam has signed and acceded many free-trade agreements, Transfer Pacific Partnership Agreement (TPP) and the upcoming ASEAN Economic Community (AEC). In this situation, exportation will be the one of the sectors that has potential growth in this market, and establishing a company in this industry in Vietnam has been concerned by many foreign investors.

The following article of Global Links Asia will give somes advises and related documents for the firms intending to establish export- import company in Vietnam.

Business Incorporation in Vietnam

Limited Liability Company – A 100% foreign owned LLC can be set up in Vietnam with just 1 shareholder, regardless of nationality and whether or not he/she is a Vietnam resident. The shareholder will then appoint a Director who will have to travel to Vietnam and get a work permit.

Joint Venture – Also known as partially foreign owned LLC, this is the most common type of offshore company set up in Vietnam. The company is incorporated by at least 1 Vietnamese shareholder and 1 foreign investor. The licensing delays are however, common in this structure.

Public Limited Company – A JSC is when three or more shareholders of any nationality, regardless of whether they are Vietnam residents, form a company. If the company appoints a foreign director, who will also be the legal representative, he/she will have to travel to Vietnam to get the work permit.

Branch Office – Foreign companies operating for at least 5 years can also set up branch offices in the country. A resident representative has to be pointed along with meeting other obligations. This option is not recommended as it exposes the investor to unlimited liability.

Representative Office – A representative office can also be opened in Vietnam for businesses that have been operating abroad for one year. Despite that the representative offices are 100% foreign owned, the company cannot engage in commercial or production related activities.
 
Procedure

Once you have decided on the structure, here are the steps to company incorporation in Vietnam:

    Company name registration, followed by obtaining the registration certificate and the tax registration certificate.
    Making the company seal.
    Registration of seal with the Police Department.
    Opening a bank account with a local bank.
    Buying VAT invoices.
    Registration with the Vietnam General Confederation of Labor.
    Publishing the registration details on National Business Registration Portal.
    Paying for the business license tax.
    Registration with local labor office.
    Registering employees with Social Insurance Fund.
 
How 3E Accounting Helps

Currently, there are five corporate structures available to foreign investors, but all of them have their set of hurdles and challenges. This is where 3E Accounting can help you with Vietnam company incorporation services that provide you with end to end support. As a result, you get to see your company shaping up within a matter of days, helping you regain focus on other important decisions.