Business Incorporation Myths in Vietnam Debunked

Some incorporation myths discourage many investors from doing business in Vietnam. Do not believe these myths as we can debunk them.

To be able to run a business in Vietnam, one must form a legal company to start with. The process for company incorporation is considerably easy and streamlined. Moreover, the country has a welcoming market, an abundance of resources, and a skilled and cheap labor force that make it an alluring destination for investment. However, there are many misconceptions that need to be addressed to help you sail seamlessly when it comes to investing in the Vietnamese market. 

Find Out About Company Incorporation Services in Vietnam

We’d like to dispel a few myths about company formation in Vietnam for international businesses.

Doing Business in Vietnam: Incorporation Myths Debunked

1. You Need To Know All About Tax And Business Laws

Laws differ from country to country, and each province in Vietnam may also have its tax and accounting laws.

This does not imply that one should go out and learn everything there is to know about tax and business regulations. 

A business may easily outsource its tax and other business processes to professionals who possess the skills to manage all of the above and much more. Moreover, outsourcing saves a lot of time by ensuring that the firm is in complete compliance with all of the applicable laws.

2. You Can Be Fined For Incorrect Tax Filing

Running away from tax obligations may indeed result in imprisonment. However, minor and inadvertent errors don’t usually result in imprisonment. Unintentional and incorrect tax filing will most likely result in penalties in monetary form – though the amount can be large depending on how big the error is.

Leveraging a tax and accounting outsourcing professional may eliminate all of these dangers once and for all.

3. It Is Expensive To Form A Company

It is indeed expensive to start up a large multinational firm in any country, and Vietnam is no exception. However, most firms may be incorporated at a low cost while they are just getting started.Establishing an enterprise in Vietnam can be streamlined by purchasing an established firm, commonly known as a “ready-made business”, or a “shelf company”. A pre-existing corporation allows you to start and manage your business in Vietnam instantly. Cekindo will assist you in obtaining shelf companies of various ages that meet your business needs.

Related: Vietnam Opens Market for UK Companies with UK-Vietnam Free Trade Agreement

4. Business Formation In Vietnam Is Time-Consuming

This myth depends entirely upon the method of incorporation. The hefty and long way around the process will be time-consuming. However, if a company is formed with all the right information, paperwork, and the right authorities to consult, it can be done in half the time. 

Unfamiliarity with the registration process and several missteps along the road might make the business formation a herculean task. A pre-existing company or a shelf company can help you avoid costly mistakes due to your lack of familiarity with local laws and regulations and save you from a potentially time-consuming process.

With the help of a reputable supplier, you may buy an existing firm (shelf company) and take it over. A company transfer and registration can be accomplished in a matter of a few weeks. Your business’ reputation and your prospects’ confidence can both be enhanced by working with an established firm from a reputable source.

Cekindo Offers Services on Acquiring an Existing Company and Outsourcing Solutions

When it comes to the legal issues of owning a business, Cekindo has a wealth of experience.

If you decide to acquire a firm in Vietnam, our experts will do the essential due diligence. Our outsourcing solutions make sure that your business can be up and running in no time.

Also, our bilingual team of business consultants is delighted to assist with all queries regarding shelf companies or outsourcing options in Vietnam.

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