Setting up a business in Vietnam

If you want to set up a business in Vietnam, it is fundamental that you learn about the legislation regarding foreign investment and starting businesses in the country. You will need to obtain an authorization of entry which will allow you to apply for a business visa.

To do this, you need a partner already in the country. Your partner may be of Vietnamese or of foreign origin. Once you have obtained your authorization of entry, you can apply online or via your nearest Vietnam embassy or consulate.

Getting started

There is no legal minimum or maximum capital required for most types of business, however, real estate and education are exceptions. You can invest in your business using either local currency, the Vietnamese dong (VND), or in a foreign currency that can be converted. In addition, you must determine the status of your company, stating the name and address of the operating head office and its branches (if applicable at this point in the process). It is also important to have determined and then mention the area(s) in Vietnam in which you intend to invest.

If a collective society, you will need to mention the names and nationality of your business partners, as well as produce the various organizational and management plans for your company. You will have to hire a legal representative who will be best-suited to assist you with the necessary procedures.

Registering your company

The next step is to register your company with the Provincial People’s Committee closest to your company’s head office. You will be required to send a completed application by producing the following documents:

• status report of the company
• the list of shareholders or members and a copy of their identity card or passport
• if the shareholder is a foreign company: a copy of the registration certificate
• the certificate of paid-up capital for the establishment of the company
• the exercise certificates of directors or associates.

You must ensure that your business activities are not prohibited in Vietnam and that the name given to the company complies with the provisions of Vietnamese law. All going smoothly, the registration certificate should typically be issued within ten days from the date of submission of the request.

Once you have obtained the registration certificate, you will have to publish information about your company on the registration office website, as well as in three consecutive editions of local newspapers within 30 days as from the date of issue.

Note that your company will be subject to income tax once you have registered with the Revenue Department of the Vietnamese Ministry of Finance.

Good to know:

In addition to hiring a legal representative, it is also optimal to hire a local Vietnamese legal and business advisor who will know the most up-to-date information and assist you in having a smooth registration process.