DOING BUSINESS IN VIETNAM

Part 1: Choose business type

We normally recommend one of these four types of companies:
1. Wholly Vietnamese-owned company
A limited liability company (LLC) where the owners are Vietnamese individuals or companies. Because of the easier setup and that some industries are restricted for foreign owners in Vietnam, a common practice for setting up a business in Vietnam is that a foreign owner can cooperate with a Vietnamese partner to set up a 100% Vietnamese-owned company, yet still protect their ownership and benefits.
2. Wholly foreign-owned company
A limited liability company (LLC) where the owners are foreign individuals or companies.
3. Joint venture company
A limited liability company (LLC) with at least two owners, individuals or companies, of which one is Vietnamese and one is foreign.
4. Representative office
The office can not earn revenue in Vietnam, but works as a local representative in Vietnam for a foreign company.

Part 2: Things to prepare

Office space:

Find office space then for your business not only to have a place to work, but also as a specific office address is required by the government for the business license application. At very first days, coworking spaces are a good choice for SMEs, normally they also offer virtual office service.

Legal representative:

Shareholder/Owner can be legal representative, Vietnamese or foreigner. A company can have more than 1 legal representative.

Business license and sub-license:

You need to register business license for your company, expect a 5-day-waiting period for a Vietnamese-owned company, and 45-day-waiting period for a foreign-owned company. Talk to your lawyer to know which sub-licenses you should obtain for your business activities. Prepare all necessary paper work and make sure that you fulfill all necessary requirements prior to applying for the licenses.

Company administration:

According to Vietnam law, a company is compulsory to follow many tax, accounting and HR procedures. Its more convenient if you can find a consulting firm which offers a package services (all-in) so you don’t have to spend so much time on researching and working with/at authority.

Note: The content of advice and legal provisions referenced in the article is at the time of consulting and may no longer be effective at the time readers read this article. Therefore, for detailed advice and implementation support, please contact Law Plus via email info@lawplus.vn or phone number +84 2862 779399.

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Related:

  1. Procedures for establishing reppresentative offices of foreign investors in Vietnam
  2. Procedures for termination of foreign representative office in Vietnam
  3. Investing into Vietnam

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