Investment in Vietnam: Questions and Answers
As one of the fastest-growing economies in the world and the third largest market in Southeast Asia, Vietnam had a foreign direct investment of US$17.5 billion in 2017 alone. The growth momentum of FDI continues until the present day, making the country a hotspot for foreign entrepreneurs and investors. This article compiles a list of the most popular questions related to investment opportunities and company registration in Vietnam.
What is the best legal entity for foreign investment in Vietnam?
The most common investment vehicles to foreign investors are the limited liability company, the joint-stock company and the business-cooperation contract. By far, the limited liability company is the best option for foreigners doing businesses or investing in Vietnam.
How long does it take to set up a foreign limited liability company in Vietnam?
Setting up a foreign limited liability company often involves two (2) critical steps:
- Investment registration
- Company registration
The entire setup process takes approximately one month or may be more, starting from the day of submission of a complete application dossier.
Do I need to be in Vietnam in person for the company registration? Will Cekindo be able to do that on my behalf and all I have to do is to provide the required documents online?
You do not need to be physically present during the company registration process. Cekindo can handle the procedures for you based on the Power of Attorney authorised by you.
For other procedures after the licensing process, such as the company bank account registration, the legal representative of the newly registered entity must be present in Vietnam.
What are the documents required to be submitted to Cekindo to begin the company registration process?
Cekindo will be able to provide a list of required documents, until we have identified your specific circumstances of setting up a company in Vietnam.
Is the legal representative of the newly-formed company required to stay in Vietnam?
For most cases, the legal representative shall reside in Vietnam as a resident. A foreigner is considered a resident once he/she has lived in the country for at least 183 days.
What is the corporate tax rate in Vietnam?
The corporate tax rate in Vietnam is 20%.
To help you take advantage of the tax incentives offered for your business expansion and investment in Vietnam check Tax Incentives in Vietnam.
When can foreign investors remit their profits from the company?
At the end of each financial year, foreign investors are allowed to remit their profits. They can also do so upon the termination of their investments in Vietnam. If the company has suffered losses, profits cannot be remitted.
Along with the growth of digital-related business trends in Vietnam, check the 5 IT-related Sectors for Your Investment in Vietnam to get a better understanding of the potential sectors in 2020.
Talk to Cekindo
You can contact Cekindo for all the legal services and business consultation you need to jumpstart your investment in Vietnam.
Our comprehensive range of services includes company registration, drafting agreements, license application, negotiation assistance, trademark registration, and other critical legal supports.
Get in touch with us by filling in the form below and seize the Vietnam investment opportunities.