Vietnam’s dynamic environment for businesses has made it an ideal location for foreigners to start businesses and engage in company registration in Vietnam. This has been reflected in the existing and returning young Vietnamese people overseas but also the influx of expatriates from all over the world.
Furthermore, thanks to the government’s wide-ranging support and trade agreements, increasing middle-income group, and shifting consumer attitudes in recent years, Vietnam has transformed into an incredible heaven for foreign investments.
If you are one of those foreign investors looking to expand your business to Vietnam, of course you need to understand about business incorporation. To start a business in Vietnam, you need to establish a legal entity.
This article summarises a list of questions and answers related to company registration in Vietnam.
Company Registration in Vietnam: Your Questions Answered
What types of legal entity are available in Vietnam?
In general, there are three types of legal entity in Vietnam:
- Local Limited Liability Company (Local LLC)
- Foreign Limited Liability Company (Foreign LLC)
- Joint-stock Company (JSC)
What is a limited liability company?
A limited liability company does not have shareholders and the business owners are members but not shareholders. The percentage of ownership of the company depends on the amount of capital contributed by each member.
This type of company is considered the simplest form and can be used to protect your personal assets in cases of legal disputes.
What is a joint-stock company?
A joint stock company in Vietnam is established through subscribing to the company’s shares. It is similar to an LLC but is considered more complicated and is more suitable for larger businesses.
A joint-stock company is permitted to be listed on stock exchanges because it can issue shares to the public.
Why do many small businesses choose a limited liability company over other forms of legal entity?
There are many reasons a small business opts for a limited liability, here are some of them:
- Easy market penetration
- Simple formation and organisational structure
- Reduced operational costs
- Personal assets protection
- No minimum capital requirement
- For single-member LLC, the business owner has the sole authority of all business operations
What is the process of company registration for LLC in Vietnam?
Here is a summary of the company registration process of LLC:
- Contact Cekindo
- Cekindo arranges an appointment at the Department of Planning and Investment
- Prepare documents in Vietnamese
- Provide certified copies of passports and identity cards
- Rent an office with a lease contract
- Cekindo assists in applying an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC)
- Obtain your certificate of tax registration
- Open a local bank account
- Your business will be published at the National Business Registration Portal of Vietnam
Cekindo can assist with your LLC registration to save costs and time, and complies with the Vietnamese Law.
How long does the entire company registration process take?
With Cekindo’s assistance, it takes about 45 days. The turnaround time could be much longer if you go through the process on your own without professional consultation.
Why do so many foreigners register companies and start businesses in Vietnam?
Vietnam has opened its door to trade and foreign investments since decades ago. In addition to that, many foreign companies plan to expand their presence to Vietnam because of the following key advantages:
- 100% foreign ownership in most industries
- Global integration and trade agreements (member of WTO and ASEAN, Europe-Vietnam Free Trade
- Agreement, etc.)
- Decreased red tape and simplified company registration process
- Encouraging startup environment
- Competitive startup and operational costs
- Abundant, young and talented workforce
How Cekindo can Assist with Company Registration in Vietnam
Simply get in touch with us by filling in the form below, and our team of professional consultants will guide you with all the assistance you need – from the beginning to the very end. You will have peace of mind during the process of business setup in Vietnam as we will be with you every step of the way.