Once you have completed your company incorporation in Vietnam, the Vietnamese government expects you to go through certain necessary processes. Your company must also comply with Vietnamese laws to keep your company up and running. Here is a guide to ensure your continued success in your venture into South East Asia’s hottest developing economy.
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Let’s start with some of the basic steps you need to follow immediately after your company incorporation in Vietnam.
What’s Next after Company Incorporation in Vietnam?
1. Opening a Company Bank Account
Opening a bank account in Vietnam is an important step after your company incorporation in Vietnam. Having a local bank account means that you can save on expensive bank fees and simplify bank transactions.
There are two types of bank accounts available for foreigners or foreign companies: personal bank accounts for foreign individuals and business bank accounts for foreign companies in Vietnam. And a business account can further be categorised into an investment capital account and transaction account.
Of course, you need to meet the set criteria to open either a personal bank account or/and a business bank account. If you need more information regarding the requirements, contact Cekindo.
2. Registering for Tax and Paying for Annual Business License Tax
After opening your bank account, you should go ahead and register for tax and pay for your annual business license tax.
Then, you must submit your company’s corporate tax statements every month, every quarter and every year. Notwithstanding if your company has business activities or tax liabilities, the submission must be carried out on-time.
A majority of businesses in Vietnam see tax-related activities burdensome and unmanageable in-house, particularly during tax seasons. They often do not have competent employees and careful handling of their tax matters. Consequently, these companies in Vietnam struggle with tax compliance and face appalling penalties.
One solution that allows companies to surmount every day’s tax challenges is to partner with tax professionals. A reputable tax professional can handle all your tax functions so that you can stay compliant with the Vietnamese laws and regulations.
3. Registering for E-invoices
Once you have done your tax registration and annual business license tax payment, you need to register for e-invoices. There are two types of e-invoices: e-invoices with tax verification codes that are eligible for tax declarations and e-invoices without tax verification codes.
Under Decree 119 that has been effective since November 1, 2018, the Vietnamese government mandates all companies to make use of e-invoices for the sale of goods and services.
However, businesses will be given a transition period until October 31, 2020. After this, the use of e-invoices is compulsory.
4. Applying for Work Permit and Residence Card
It is a universal law that if you want to work and stay in a foreign country, you need a work permit and a residence visa.
If your company is to recruit the best talent from overseas, you must apply for a Vietnam work permit to be able to work and perform business activities. A Vietnam work permit is valid for 12 months and you can renew it once.
For foreigners to stay in Vietnam for a significant amount of time, you need a temporary residence card (TRC) and a work permit.
Cekindo Takes Care of Everything
Cekindo is a firm of company incorporation in Vietnam with professionals specialising in company registration, nominee arrangement, license, and permit application, visa application, tax, and accounting outsourcing, recruitment outsourcing, and many more.
Our single–point, integrated service to clients covering all business services that you need for running a rewarding business. We help local and foreign companies setting up new business operations in Vietnam and those with an existing presence in the country.
Cekindo helps you with everything in your company’s incorporation in Vietnam. With that, you can stay ahead of market changes and legal updates while staying on top of costs.
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