Factors to establish a business in Vietnam

In recent years, many new businesses have been established, creating a massive new wave in the business market. In order for an enterprise to operate properly and in accordance with the law, it must be registered in accordance with the provisions, orders and procedures of the law. Besides, the establishment of a business depends on many factors, especially legal ones. The following article, YNNGLOBAL, will help you understand the factors of establishing a business in Vietnam.

1. Company's name

As we all know, an enterprise is said to be an economic organization with its own name, own assets, and a stable transaction office. Therefore, the business name is one of the most important factors in the process of shaping a business brand. Here are a few regulations on business names in Vietnam:

• The company's name must be written in Vietnamese and displayed at all locations where business is conducted, including the head office, branches, representative offices, and retail stores.
• Business kind and business name are the two components that it must have.
• Vietnamese names and names are written in other languages and are abbreviated in these names.
• The company name must not contain any words or symbols.

2. Line of business

In the process of setting up a business, determining the business line is an extremely important factor. Businesses that want to do business need to be registered with a state agency. Especially with business lines that require legal capital, such as banks, real estate, financial companies, security services, etc., businesses need to take steps to prove the amount of capital. legal before business registration.

3. Corporate headquarters

The corporate headquarters or business address is the place where the business transactions of the corporation are carried out. The head office of the enterprise should clearly state the house number, street name, commune, district, province, city,.. or fax number (if any), phone number to increase the credibility of the business itself.

4. Founding member

Each type of enterprise will have its own regulations on the number of founding members:

• A partnership with two or more capital contributors.
• A private company with one founding member
• joint-stock company with 3 or more members who are founding shareholders, with an unlimited number of
• One founding member of a one-member limited company
• 2-member limited liability company: minimum 2 members and maximum 50 founding members

5. Charter capital

Charter capital is defined as the amount of capital contributed or committed to contributing capital by members, and shareholders, and recorded in the company's charter. According to Enterprise Law 2020, it is clear that the types of assets are used to contribute capital to companies and enterprises. Accordingly, assets contributed as capital can be Vietnamese dong, foreign currency, gold, land use rights, intellectual property rights, technology, etc. According to the constitution of Vietnam, there is no minimum capital requirement or maximum capital except for industries that require legal capital.

6. Legal representative of the company

The legal representative of the company is the person who represents the business in signing all kinds of documents and contracts and making the business contract legal and protected by the law. The legal representative of the enterprise can be the General Director, Director, Chairman of the Members' Council, or Chairman of the Board of Directors,...

Hopefully, the above information will give you an overview of when you want to set up a business. If you are in need of a quick and professional business establishment service, please give your trust to YNNGLOBAL. Here we will help you solve complicated and complicated legal procedures with many methods to help your business optimize costs as much as possible. With a team of professional and experienced staff in the profession, YNNGLOBAL is confident that it will meet all the needs of customers quickly, professionally, and at the most reasonable price.

Related: Procedures for transferring capital to foreigners

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