Posted 19.01. 2021 by Cekindo
Companies or individuals who are interested in undertaking business activities and setting up a company in Vietnam have to know that legal entities come in different sizes. In Vietnam, the most typical company sizes are a micro company, a small company, and a medium company. Each company size must meet specific criteria according to the Vietnamese laws and regulations.
The type of operating field, the total number of employees taking part in social insurance, and the total capital and previous year’s revenue are the criteria that micro company shall meet to be qualified as a micro company:
Just like a micro company, the criteria utilised for companies to meet the small company status are also based on the business field, the total capital, and previous year’s revenue, and the total number of employees taking part in social insurance:
For a business to be legally known as a medium company in Vietnam, it has to fulfill the following criteria in terms of the total capital, the previous year’s total revenue, and the total annual average number of employees participating in the social insurance.
Here is the calculation for the annual average of total employees: total number of employees taking part in social insurance divided by 12 (months). However, if a company has been established for less than 12 months, the total number of employees shall be divided by operating months.
As for the total capital and total revenue, if a company has only operated for less than a year, the amounts are based on the previous quarter’s balance sheet nearest to the time when the company was registered.
Vietnam is possibly one of the most valuable pieces of land for investment on earth. The country is creating and offering new business opportunities for local and international investors.
However, setting up a company in Vietnam can be tedious and confusing. There are many choices, and you will require a specialist to discover what precisely your requirements are.
Choosing the wrong company setup can be costly and might leave you with just a financial burden and other legal complications. As business people ourselves, Cekindo brings years of knowledge and experience and is ready to share it with you.
Get a free consultation for setting up a company in Vietnam. Fill in the form below.