Posted 20.03. 2020 by Cekindo / Last update on 6.05. 2020
Foreigners across the globe have been flocking to Vietnam since the 1990s to invest in the country. For many entrepreneurs, now is the best time to set up a business in Vietnam because the purchasing power in the country has gone up; and the Vietnamese are ready to spend their money on products and services.
Therefore, according to the World Bank’s report, among the 190 countries in the world, Vietnam was ranked the 70th for doing business in 2020. The report also mentioned that significant improvement has been observed in doing business in the country. For example, as of October 2019, the foreign direct investment grew by 7.4% year-on-year.
Since foreign investors’ confidence has improved tremendously, the business registration in Vietnam has also increased substantially.
Most of the investors opt for a foreign limited liability company. However, if you’re an investor seeking a more convenient option or would like to test the water in the Vietnamese market first, a branch office or a representative office could be your option.
There are considerable differences between a representative office and a branch office for business registration in Vietnam.
Below, Cekindo is sharing the pros and cons of both types of legal entities in Vietnam:
Plus Points of a Representative Office
Minus Points of a Representative Office
Plus Points of a Branch Office
Minus Points of a Branch Office
Between the representative office and the branch office, a foreigner’s best option for business registration in Vietnam could be either of them – depending on your business goals in Vietnam.
If you wish to participate in income-generating business activities such as trading in Vietnam, a branch office will be more ideal.
On the other hand, you should consider setting up a representative office if your key purpose is to make a presence in Vietnam and do market research. This is because a branch office setup needs more time and expenses.
At Cekindo, we understand it well that starting a new business in Vietnam can be a tough task when there’s a steep learning curve for foreigners to grasp the country’s laws and regulations.
The specific procedure for business registration in Vietnam may seem complicated, or even confusing.
However, if you follow the guided process with the right, professional support, it is far simpler than you may think. That’s why entrepreneurs are recommended to conduct business registration in Vietnam with an experienced consultant.
Cekindo will handle the whole procedure on your behalf, and take the hassle out of your business registration in Vietnam. Get in touch with us now by filling in the form below.