The dynamic business environment in Vietnam makes it an excellent destination for establishing an advertising company. The digital revolution is underway in Vietnam, like in no other place in SEA. In fact in 2020 it is believed that 50% of the population had access to Social media, coupled with a new boom in E-commerce, it is a ripe ground for foreign advertisers to establish themselves in the country.
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Foreign investors must comply with certain Vietnamese regulations to be able to form an advertising company in Vietnam.
Requirements for Setting up an Advertising Company in Vietnam
We have included the following items to give you a broad indication of the requirements for starting your advertising company in Vietnam as a foreigner:
- Foreign investors must have joint ventures with Vietnamese partners with no limit of the percentage of foreign ownership. However, foreign investors are not permitted to set up a 100% foreign-owned advertising company in Vietnam
- All operating scope, investment form, Vietnamese partners must conform to international agreements in which Vietnam is a signatory. For example, the investment form of tourism companies shall be in capital contribution or capital/share contributions purchase
RELATED: Vietnam’s E-commerce Industry Booming in 2021
Documents Required for Establishing an Advertising Company in Vietnam
Foreign investors must prepare the following documents to register their capital contribution or capital/share contributions purchase:
- For foreign individuals: a copy of passport or identity card
- For foreign organisations: a copy of the Establishment Certificate or an equivalent document that proves the investor’s legal status
- A written document for the registration of capital contribution or capital/share contributions purchase, specifying all the information about the organisation and its investment, as well as the foreign investor’s holding after the investment is made
- If foreign investors authorize individuals or representatives to carry out the application process on behalf of the investors, a service contract or a procuration is compulsory to show that the appointed person has the authority to perform this formality
Process of Starting an Advertising Company in Vietnam
Procedure to start an advertising company in Vietnam includes the following steps:
- Foreign investors must submit all mentioned requirements to the provincial Vietnamese Service of Planning and Investment Department where the company headquarters is located.
- Once the contribution of capital, capital/share contributions purchase meets all legal conditions, the provincial Vietnamese Service of Planning and Investment Department will send a written notification to the foreign investor within fifteen working days starting from the day on which complete and valid submission is received. If the contribution of capital, capital/share contributions purchase does not meet the specified legal conditions, the provincial Vietnamese Service of Planning and Investment Department will also send written notification with an explanation to foreign investors.
- Upon the receipt of the permit from the Vietnamese Service of Planning and Investment Department, foreign investors can then make a capital contribution to an advertising company in Vietnam. All foreign investors must have an investment capital account at Vietnam’s commercial bank. All share purchases and sales contributed capital transfer, collection, and use of dividends and profits, money remit abroad, and other transactions to this advertising company must be conducted with this Vietnam’s investment capital account.
- The advertising company is required to go through a legal procedure to change the company’s shareholders or members as specified by the Vietnamese law.
How Cekindo can Assist
Cekindo’s first and foremost priority is to help business owners and companies obtain detailed insights into the company incorporation process, including setting up an advertising company in Vietnam. Our highly-skilled, experienced, and qualified team of professional consultants give their best efforts to make sure that you have the most up-to-date information about forming an advertising company in Vietnam.
Over the years, Cekindo has relentlessly offered an excellent range of cost-effective and practical solutions in Vietnam including market entry service, license, and permit application, tax and accounting services, recruitment service, and other business outsourcing services.
For further information about advertising company formation, feel free to give us a call or leave your details below.