Posted 14.10. 2019 by Cekindo
Setting up a company in Vietnam may seem like the perfect opportunity for you to realise your entrepreneurial dream or business expansion goal. However, have you ever considered what the risks are in your new venture in Vietnam? What is the business structure that fits your investment? What is the company registration process like in Vietnam? What are the restrictions regarding investment sectors, investment capital, business licenses, etc.?
Asking yourself the right questions for your business is as important as having a good and innovative business idea. That is why in this article, Cekindo has prepared a list of mandatory questions before setting up a company in Vietnam.
There are two kinds of investment areas in Vietnam: non-conditional investment areas and conditional investment areas. It is a simpler process for you to start a company in non-conditional investment areas than in conditional investment areas, including manufacturing, information technology, business promotion and management consulting.
Conditional investment areas such as travel agencies, real estate, freight forwarding and trading are more complicated as they come with certain conditions.
Only certain types of address can be used for business registration in Vietnam. They are house addresses with lease agreement and office building addresses with owner’s operational license.
Your company in Vietnam must have both English name and Vietnamese name. An abbreviated name is possible as well. The name of your company enables people to know your company structure.
Generally, there are three common types of legal entity in Vietnam: single-member limited liability company, multiple-member limited liability company and joint-stock company. The type of legal entity depends on the size of the investment capital.
Depending on the business plan and the provincial approval, the minimum investment capital may or may not be necessary. Sectors such as banking and finance and real estate require minimum capital.
As for businesses in non-conditional investment areas, there is no minimum capital specified under Vietnam Law. However, your investment plan may not go through if the authority determines that your investment project is not attainable.
Again, the size and the type of your business, as well as certain conditions decide how long it takes to establish your company in Vietnam. For a simple business of minimum capital without special conditions, it normally takes 30 business days to set up.
For most company setups in conditional investment areas, the duration will be longer and can take as many as 60 working days.
Tax liabilities in Vietnam include personal income tax, corporate income tax, value-added tax, and import and export tax. Other taxes apply too in some special business areas.
Currently, Vietnam has 20% corporate income tax; zero export tax (except special cases); 10% value-added tax (0% and 5% for special cases); varied import tax and personal income tax (applicable for income of more than VND 9,000,000).
If you have decided to set up a company in Vietnam, Cekindo has the top legal and business experts to provide you with the highest quality and the most transparent company registration services in Vietnam. We will:
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