Considerations for setting up a company in Vietnam
Although the Vietnamese market presents lucrative business opportunities, foreign investors must be aware of legal quandaries and risks involved. These aspects could be a bigger impediment to businesses in Vietnam if not taken into account. Here are the key considerations prior to invest in Vietnam.
1. Choosing the Right Legal Entity to invest in Vietnam
Depending on the nature and scale of the business, investor can select a form of company to be set up. For instance, a foreign investor can choose from a foreign-owned company (usually an LLC), a representative office, a nominee company, or a shelf company.
However, despite the ease of forming an LLC, if you own a medium or a large corporation, forming a Joint Stock Company (JSC) would probably be the more optimal entity for you.
Read more: The forms of company in Vietnam
2. Rent an office to register company
Unlike a local company, in application of foreign capital company shall be included of documents of company office. Therefore, prior to submit the application, investor needs to rent an office.
Regarding Vietnam’s regulations, the offfice can be a physical office or a virtual office.
Read more: Virtual Office
3. Business lines of company
Currently, there are restrictions related to the business for enterprises with 100% foreign capital. Specifically, there are prohibited occupations of foreign enterprises and the implementation of business conditions.
Investors need to know which are (partly) allowed to invest in Vietnam and which are prohibited business as well as conditions of such business in order to have right decisions.
Read more: List of conditional business in Vietnam
4. Preparation of documents needed for incorporation
It is not easy to prepare the documents since the documents are up to the investor’s form which is organization or individual.
In additions, the legal documents issued at oversea, in almost cases, need to be consularization and legalization. Therefore, the investors should know to prepare fully documents for the procedure effectively and timely.
Read more: Checklist of provided documents for incorporation a company in Vietnam
5. Select a right assistance to support for incorporation a company in Vietnam
Duong Luat Business and Investment Consulting has extensive knowledge of the Vietnamese market as well as professional expertise with the registration and formation of businesses in Vietnam.
Our comprehensive business solutions are just what you need if you’re not sure whether an organization is suitable for you.
Forms of legal entity in Vietnam2:25 PM|23/12/2021
A foreign entity may establish its presence in Vietnam in various forms of business, such as setting up a Limited Liability Company with one or more members, a Joint Stock Company, a Partnership, a Branch, a Representative Office or a […]
New guidance on M&A approval process12:48 PM|21/03/2021
With the effect of the Law on Investment 2020, the Ministry of Planning and Investment issued Official Letter No.8909/BKHDT-PC at the very end of last year, providing guidance on the implementation of investment procedures. These are the key points and […]
Foreigners contribute capital to a local LLC12:52 PM|01/02/2021
Many foreign investors choose to contribute capital to a limited liability company because this type of company is very safe with limited responsibility and strict control. Therefore, we would like to share with you some legal information for foreign investors […]