Do not hesitate to set up a company in Vietnam amid the coronavirus epidemic. Done online, the process is FAST. Free consultation and enjoy 20% OFF if you combine this month.
In 1 to 3 months, your company will be fully established and by then the pandemic may have receded. Your business activity can start immediately.
HOW TO ESTABLISH A COMPANY IN VIETNAM
Foreign investors can form a number of legal entities with Limited Liability Company (LLC) and Joint Stock Company (JSC) being the most popular options for company registration in Vietnam.
Legal entities are then categorized based on the percentage of foreign investment. Because most industries in Vietnam allow foreign entrepreneurs to own up to 100% of the shares, a wholly foreign owned enterprise (WFOE) is a popular business structure in Vietnam. International investors can also find a local partner and combine a Joint Venture Company with foreign ownership.
TYPES OF LEGAL ENTITIES AVAILABLE IN VIETNAM
Limited liability company (LLC)
LLC is the most common legal entity in Vietnam and is a great choice for small and medium businesses (SMEs). Individual investors can take advantage of its simple company structure, requiring only one founder. LLCs are not allowed to issue shares publicly and are publicly listed on the Vietnamese stock market.
Find out more about Registering LLC in Vietnam
Joint Stock Company (JSC)
The joint stock company is recommended for medium and large businesses because its business structure is complex and requires a minimum of three founders. Moreover, its registration process is often delayed due to more stringent requirements. This type of joint stock company allows its owner to issue shares and be listed on the public stock exchange.
Learn more about Registering Joint Stock Companies in Vietnam
Representative office (RO)
RO is perfect for foreigners who want to observe the local market and gain market presence before expanding. The RO is not allowed to conduct income-generating businesses and operate like a normal company. The RO headquarters may sign, amend / supplement contracts on behalf of foreign companies, if they are authorized by their legal representative, in the presence of a lawyer.
Learn more about RO Registration in Vietnam
A branch serves as an extension of its parent company. Owners of branches in Vietnam can carry out all commercial activities of the parent company and earn profits without combining a separate legal entity.
REGISTRATION PROCESS OF VIETNAM COMPANY
The consolidation process for each legal entity is different and takes from 1 to 3 months.
In general, foreign investors should pursue the following process:
1. International investors are required to have an Investment Registration Certificate (IRC) from the Department of Planning and Investment (DPI).
2. An Enterprise Registration Certificate (ERC), is the second mandatory document to be obtained during the registration process.
3. After receiving both certificates, the investor is obliged to apply for tax registration, pay business license tax and contribute initial capital.
How can YNN help your business registration in Vietnam?
- Advise on the most suitable legal entity type.
- Provide instructions on collecting relevant documents and submission of applications.
- Act as a local representative to submit your application on your behalf without you being in the country.
- Provide legal assistance during the business registration set up.
- Assist in applying for Work Permits.
STEP-BY-STEP GUIDE OF FORMING COMPANY IN VIETNAM
- Submit your inquiry below
- Receive a response from our legal team within 24 hours
- Receive a 1-hour free consultation via phone call or a virtual meeting
- Send us all the required documents
- Service payment
- Let our team process your licensing application on your behalf
Please send your question(s) by filling in this form. Our consulting team will quickly answer you via E-mail. Feel free to visit our office to get more details about our services.
YNN handled business visa for our new colleague promptly and made the start of our company in Vietnam easier and faster. I particularly enjoyed communication with the consultant, who advised the best solution for us and was all the time available to answer any questions. She made sure that all the documents were collected and prepared on time and we got great support during the whole process. Thank you YNN!
Mr.Kim Sung Kyun
_CEO, C&H Tech Vina Co.,LTD
After comparing several consultants, I found YNN is an international and professional organisation with a good understanding of the local market. YNN helped our company to set up our first Indonesian entity, and also helps with day-to-day operation. YNN shows a high level of professionalism. Jumpstart the business in Vietnam, take care of the routine process. Therefore, we can focus more on our core business.
Mr.Kim Jung Ryool
– President, Zenith International Vietnam Co., Ltd.
Here with we want to express our appreciation to YNN Global and their team for all the support on Company Registration services so far. We would like to take this opportunity to thank YNN for taking the time to listen to our needs. Whenever a need has arisen, we have always received their consistent, timely and quality support. We would not hesitate to recommend YNN team for any related activity or services.
Mr. Ahn Jong Tae
– Executive, Da Jim Group
Partner used the service
Frequently Asked Questions
Can I set up a company in Vietnam as a foreigner?
Yes, foreign citizens are entitled to expand to Vietnam and incorporate a foreign-owned company in the country. However, there are certain restrictions and 100 % Foreign Invested Enterprise in Vietnam can be started only in the form of Limited Liability Company (LLC) or Joint Stock Company (JSC). Depending on the type of business entity you want to pursue, there are further regulations for foreigners to follow when establishing a company in Vietnam.
What are the company types in Vietnam?
The most common company types are Limited Liability Company known as LLC and Joint Stock Company known as JSC. Both types are suitable for foreigners with an LLC being recommended to smaller companies with a few owners while a JSC better fits big businesses or those that plan to go public.
Is there any minimum capital required prior to company registration in Vietnam?
Although the local law does not stipulate the minimum capital, 10,000 USD is commonly considered as the minimum capital investors should prove during the registration.
Will I be able to hold 100 percent ownership of a foreign-owned company?
Most probably yes. The Vietnamese law enables foreigners to open foreign-owned companies in most business sectors except for six business fields mentioned in the Negative List, namely:
- Drugs and narcotics,
- Hazardous chemicals and minerals,
- Range of specimens of endangered flora and fauna,
- Human trafficking, sale of human body parts and tissue,
- Human cloning or asexual reproduction.
Is there any option how to expand my business without incorporating a company in Vietnam?
Yes, there are several options suitable for investors who wish to expand without forming a legal entity.
- HR Outsourcing
Engage Cekindo in your expansion, and relocate your staff or hire Vietnamese professionals without incorporating a legal entity. Cekindo will act as an Employer of Record (EOR), provide recruitment, payroll, business visas and work permits.
- Local Distributor
Market your product in Vietnam through a local distributor. Cekindo will take care of shortlisting potential traders in Vietnam, and arrange meetings between them and your company. The main advantage for you is that you do not need to be physically present in Vietnam during the selection and negotiation part.
I want to set up my company as soon as possible, is there some way to speed up the registration process?
The process of starting an LLC or JSC in Vietnam takes approximately 1 to 3 months. In case, you wish to open a business as soon as possible, we recommend purchasing a shelf company from YNN. As such we can transfer the management control to you within a few working days.
What are the benefits of a local nominee company and shelf company?
Both local nominee company and shelf company represent fast ways how to incorporate a legal entity and penetrate the Vietnamese market successfully. A local nominee company is established through a nominee agreement with a trustworthy local partner such as YNN. In this case, the company is considered as a local company, requirements for its establishment are not that strict, and it takes around 10 working days to incorporate a local company in Vietnam. A shelf company is a previously established business with zero business activity and transactions. Investors who purchase a shelf company can start their business operations almost immediately.
I would like to set up a local company, but I do not have a reliable local partner to act as the shareholder. What should I do?
Underestimating the role of a business partner or local nominee are one of the common business mistakes in Vietnam. Choosing a reliable local partner for your company is key to success in the country while reducing the potential risks. YNN offers local nominee services without any interventions to your business processes. We also allow our partners to terminate the contract sooner that its expiry date.