COMPANY REGISTRATION (ERC, IRC)

YNN Global provides professional business establishment services

Currently, the establishment of a business takes place a lot, causing many people headaches about legal procedures. If you do not know, many people will be fined. So the article will introduce the professional business establishment service at YNN Global for your reference.

1. What is a business establishment?

Establishing a business is the creation of a business organization when all necessary and sufficient conditions are met in accordance with the law, such as individuals or organizations must prepare adequate facilities: headquarters, human resources, production lines, machinery, equipment, factories, capital…

2. Business establishment service at YNNGLOBAL

The business establishment service package at YNN Global includes company registration, company establishment, and business partner selection consulting.

2.1. Register company.

Investment Registration Certificate (IRC)

An IRC (an acronym for Investment Registration Certificate) is a paper or electronic document recording the investor's registration information about the project.

The cases in which the procedures for the issuance of an Investment Registration Certificate must be carried out are:

• Investment projects of foreign investors
• An investment project of an economic organization falls into one of the following cases:
• The project has a foreign investor holding more than 50% of the charter capital or if the economic organization is a partnership with the majority of the general partners being foreign individuals.
• There are foreign investors and economic organizations holding more than 50% of the charter capital.
• Investment in the form of capital contribution, purchase of shares or capital contribution of economic organizations
• In addition, cases in which the procedures for issuance of an Investment Registration Certificate are not required include: the investment project belonging to a domestic investor; investment projects of economic organizations with foreigners or foreign members who do not own charter capital of 51% or more Investors can carry out procedures for the issuance of an Investment Registration Certificate if necessary.

Enterprise Registration Certificate (ERC)

ERC (an acronym for Enterprise Registration Certificate), is an Enterprise Registration Certificate. An enterprise is granted when the following conditions are fully met: The registered business line is not prohibited from investment; the name of the enterprise is set in accordance with the provisions of law; valid enterprise registration documents; Enterprises fully pay the business registration fee as prescribed.

The content recorded on the ERC includes the following information:

• Business code.
• Business names include Vietnamese, international transactions, and abbreviated names.
• business address, business information such as phone number, website, email, and fax.
• Charter capital for enterprise registration.
• For joint stock companies, the number of shares
• With a limited liability company with 2 or more members, there are capital contributors. With a 1-member limited liability company, there is a company owner.

2.2. Establish a company

Limited company (LLC)

LLCs are the best choice for small and medium businesses because they are a popular legal form and make it possible for all investors to benefit from a simple business model. Larger LLCs can have between 2 and 50 members.

Some features include:

• Liability is limited to charter capital.
• Limited paperwork
• can easily raise capital.
• High clarity and transparency
• It is possible to establish a free production zone in Vietnam.

The requirements include:

• First, your LLC must be approved by the Department of Planning and Investment.
• Second, you must also have an ERC or Business Registration Certificate.

Representative office in Vietnam.

Representative offices in Vietnam will give priority to foreigners if they want to monitor and conduct market research in the country. On the other hand, it allows you to have a sales network for the parent company before fully expanding to Vietnam.

Features of Representative Office:

• Have a liaison role for the parent company.
• Manage contracts signed with local partners.
• Conduct market research.
• Open a bank account.

Requirements for setting up a representative office:

• The structure is relatively basic, so the establishment of a representative office in Vietnam is considered a convenient legal activity.
• However, the applicant also has to carefully consider some constraints. For example, the parent business must have been in operation for at least one year before it can set up a representative office.

Branch offices

The branch office acts as an extension of the parent company. From the branch office in Vietnam, you can carry out all the commercial activities of the parent company and earn profits without having to establish a separate legal entity.

Features include:

• Issue the invoice.
• Business activities
• can perform agreement and contract signing
• can make a profit.
• Accounting records can be kept independently or dependently.

The enterprise must provide the following documents to open a branch in Vietnam:

• Certificate of company registration
• Extract from the commercial registry or as a certificate of company status
• Terms of the parent company's association
• The most recent audited company annual report
• The business license of the parent company

A joint stock company

A joint stock company in Vietnam is generally recommended for medium and large enterprises as it requires a minimum of three founders. Its registration process is subject to more stringent requirements.

Joint stock company features include:

• Each shareholder's liability is limited to their contributions.
• No limit on the number of shareholders.
• Have the right to freely transfer ownership.
• In case a shareholder dies, its capital contribution will continue to exist.
• Shareholders can easily transfer their ownership.

Requirements of a joint stock company:

The process and conditions for forming a joint stock company are difficult and time-consuming.

3. How to choose a business partner?

There are six simple ways to choose a business partner:

• Choose a partner to help you learn skills and experience for your business.
• Choose a partner with a vision.
• Choose a partner who can provide reputable resources for businesses.
• Choose a solid, financially stable partner.
• Choose an ethical partner in business.
• Choose a partner with a spirit of cooperation, frankness, respect, and openness.

Professional business establishment service at YNN Global helps businesses simplify complicated documents and helps businesses save time to learn and optimize costs for entrepreneurs. Customers wishing to establish a business or for more information, please quickly contact YNN Global at hotline 0909594196 to receive many incentives.