How to set up a business in Vietnam?

With the strong development of the economy, today establishing a business is always a big goal for many people. For investors who set up businesses to do business and production, it helps bring in great income. However, to set up a business is not easy, especially with the first family related to the legal basis, license, .... So how to set up a business in Vietnam to the most optimal? Check out the article below!

1. Popular types of businesses in Vietnam

Limited Company (LLC)

According to the provisions of current Vietnamese law, a limited liability company (LLC) is a type of enterprise with legal status recognized by law. In which the Owner and the company are 2 separate legal entities, in which, the company is a legal person and an owner is a natural person. According to Clause 7, Article 4 of the Enterprise Law 2020, limited liability companies include two types: one-member limited liability companies and two-member limited liability companies.

LLC is the most common form of investment by foreign investors because the member is responsible for the company's debts and obligations within the amount of capital that he has contributed or committed to contributing to the company.

Joint-stock company (JSC)

According to the provisions of Article 111 of the Enterprise Law 2020, a Joint Stock Company (JSC) is an enterprise in which the charter capital is divided into equal parts called shares.

A joint-stock company needs to have at least three shareholders and there is no limit to the maximum number. This is the type of business where shares are issued. Therefore, the ability to raise capital for joint-stock companies is very diverse and easy.

2. Procedures for setting up a business in Vietnam

Step 1: Submit an application for an investment certificate (IRC)

To set up a business in Vietnam, the first thing business owners need to do is apply for an Investment Registration Certificate (IRC). According to the provisions of the Investment Law 2020, an investment registration certificate (IRC) is a paper or electronic document recording the investor's registration information about an investment project. This is mandatory for all projects that want to establish a new legal entity in Vietnam (regardless of foreign ownership) and establish foreign company investment rights in Vietnam.

Return results after 15 working days from the date of submission of complete and valid documents.

Step 2: Procedures for issuing an enterprise registration certificate (ERC)

According to the provisions of the Enterprise Law 2020, an Enterprise Registration Certificate (ERC) is a paper or electronic document that records information about business registration that the Business Registration Authority grants to an enterprise.

ERC is a mandatory condition for all new businesses that want to establish in Vietnam. Certificate of business registration issued by the Department of Planning and Investment of the province or city where the enterprise's head office is located.

Step 3: Post-licensing process

After being granted an IRC and an ERC, businesses need to add the following information to complete the procedures and start a business:

• Registration and announcement of seal
• Open a business bank account
• Pay annual license tax (about 90 USD)
• Register an account, and make periodic reports on investment activities on the website: fdi.gov.vn

Tham khảo thêm: Advice on setting up a joint-stock company or a limited liability company

3. YNN GLOBAL - support to set up a business quickly and easily in Vietnam

YNN GLOBAL, with many years of experience in business establishment consulting services, has been trusted by many businesses, individuals and organizations. YNNGLOBAL ensures to bring to customers the fastest, most prestigious, and quality package service. With the motto of bringing benefits to customers, we are always ready to accompany customers. If you have needs or questions about setting up a business in Vietnam, please visit the website for the fastest response.

YNN GLOBAL - Consulting services

Hotline:  +84 909 594 196

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