When we talk about doing business in Vietnam, which city would most foreigners think of? The majority would probably mention Ho Chi Minh City and Hanoi.
However, the progressive economic growth in Vietnam is no longer limited in these two cities anymore. Now, Danang is recognised as one of the most desirable stomping grounds for vacations, doing business, and foreign investments.
Danang is radiating among other Southeast Asian cities in terms of its overall development and economy, and this has to thank several factors: its East-west Economic Corridor, abundant workforce, strategic location, and improved infrastructure and technology.
Let’s see how you can incorporate a company in Danang in this article.
Common Legal Entity Options for Doing Business in Danang
Four legal entities exist in Vietnam to structure your business in Danang, they are joint-stock company (JSC), Limited Liability Company (LLC), Representative Office (RO), and Branch Office.
A joint-stock company in Danang is a legal entity with at least three shareholders with no maximum set under the Vietnamese Law.
There are no restrictions on the nationality of the shareholders and thus the shareholders do not have to be residents or Vietnamese citizens.
The company’s charter capital is divided into equal portions of shares in this type of business formation.
The benefit of a JSC is that foreigners can have full foreign ownership of the company. A JSC can also be jointly owned between locals and foreigners.
Limited Liability Company
The simplest legal entity option for doing business in Danang is the limited liability company. LLC has the advantage to protect the shareholders’ assets and the liability only applies to their shares.
A limited liability company can consist of a single-member LLC (with one member and company owner) or a multi-member LLC (with two or more members, capped at 50 members).
A representative office allows foreigners to establish their business presence in Danang at ease. It has a simple licensing procedure but it doesn’t permit commercial activities.
Foreign companies or individuals making use of a RO to promote their businesses and do market research.
A branch office can help improve your business coverage in different locations. It is also a feasible way to service a particular market.
However, there is a more complex setup procedure involved when being compared to a representative office.
The Process of Registering a Company in Danang
The process of company registration will be much more time-saving and much simpler when you seek assistance from Cekindo. Our incorporation specialists will guide you throughout the process and handle the paperwork on your behalf.
Here’s a summary of the process you need to go through when you do it yourself:
- Get all required certified foreign documents and certified copies of passports or identity cards.
- Translate certified foreign documents into Vietnamese.
- Get an office address.
- Choose the type of legal entity and register your company name.
- Obtain a company stamp.
- Register the company stamp at Danang’s police office.
- Acquire Enterprise Registration Certificate (ERC) and Investment Registration Certificate (IRC).
- Get your tax registration certificate.
- Open an account with a local bank in Danang.
- Purchase VAT invoices for your company.
- Publish your business registration at the National Business Registration Portal.
- Pay for the tax of the company’s business license.
- Register for the employee’s social insurance fund.
The process can be significantly shortened and simplified through a third-party business consultant.
Doing Business in Vietnam with Cekindo’s Assistance
The current well-ordered and business-friendly environment across Danang provides vast opportunities for entrepreneurs and budding businesses to thrive.
Ranked among the top investment destinations in Southeast Asia, Danang has a booming economy and a stable political environment, making it an ideal investment choice when doing business in Vietnam.
However, those who plan on doing business in Vietnam should do proper research and obtain the necessary knowledge in terms of laws and regulations, especially business formation legislation.
Cekindo understands that many foreign individuals and companies are not aware of the constantly-changing Vietnamese laws and regulations; this is why Cekindo steps in.
Our team of professionals and legal experts is always up-to-date with the latest laws and regulations within the region. We also work closely with governmental bodies so you can be certain to have a high-end qualitative service and streamlined process when setting up a business in Vietnam.
Work with Cekindo today and your business will be in completely safe and secure hands. Fill in the form below.