So your company is ready for a stage of business expansion and Vietnam has popped up on your radar?
Over the years, Vietnam has been rapidly developing. It has also positioned itself as one of the ASEAN countries’ key partners during its incredible economic transformation. It is ranked the third-largest economy in Southeast Asia with a growth rate of more than 7% in 2019.
The country’s economy will enhance greatly due to favorable government policy and surging foreign investment. Vietnam is ready to overtake the economy in many Southeast Asian countries in the near future.
The supporting government policies and trade agreements have eased the process of doing business in Vietnam. Countless countries now have unprecedented opportunities and access across a vast spectrum of sectors and industries.
Positive government is not the only thing that boosts the dynamic economy. Vietnam is well known for being a great investment destination, thanks to its burgeoning population, especially the young workforce and middle-class group.
With over 97 million people and expected to increase to 105 million by 2030, Vietnam’s particular sectors such as manufacturing are destined to flourish significantly.
Furthermore, Vietnam’s strategic location and progressive infrastructure have made it an ideal investment hub for foreign corporations and entrepreneurs. Its proximity to China and low labor costs are the reasons many business owners have moved their companies from China to Vietnam.
Transportation is made easier for all import and export trades when the Vietnamese have utilized a huge sum of the foreign investment capital in international airports, highways, new ports, among others.
Requirements For Vietnam Company Incorporation
There are several key requirements you should comply with for starting your Vietnam company incorporation:
Allowed Foreign Direct Investment (FDI)
There are two available legal entities for foreigners to choose from: a Limited Liability Company (LLC) and a Joint-Stock Company (JSC). LLC requires only one or two shareholders and JSC requires at least three shareholders.
There isn’t a minimum capital requirement for foreigners for their Vietnam company incorporation. Oftentimes, it is possible to start a service company with only US$20,000*. But, the common amount is US$40,000.
*This tends to change from time to time, please get in touch with our consultants for more up-to-date information.
Registered Business Address
A legal, registered business address is compulsory for every company incorporated in Vietnam.
For startups or business owners on a budget, or who are not ready for a long-term lease commitment, a virtual office in Vietnam is a great solution to have a legit business address. You have the flexibility to change the business address later.
A resident director is required for the Vietnam company incorporation. He or she must maintain a residential address in Vietnam once the company is incorporated.
A foreign director who is not the founder of the company must have a work permit to be able to lease a property. Therefore, a foreigner who does not have Vietnam’s residential address prefers a nominee director.
Incorporate a Company in Vietnam with Cekindo’s Assistance
A foreigner or foreign company wanting to start a business in Vietnam can choose from several options for operations. The options include a registered company, a representative office, a branch, a nominee arrangement, and even a virtual office.
However, it is crucial to have full knowledge of your options and their requirements before deciding how to establish a business presence in Vietnam. You can hinder the long-term growth of your company in Vietnam when making the wrong choice.
Cekindo is your trusted business consulting firm that can help you make informed decisions about how and what best to incorporate a company in Vietnam.
Our expert compliance officers and business consultants can also provide realistic and effective solutions with maximum flexibility. You can now avoid piles of paperwork with Cekindo’s professional assistance for your Vietnam company incorporation.
Start discussions with our incorporation specialists. Fill in the form below.