Businesses have to adapt to fast-changing markets and antiquated bureaucracies like that of Vietnam. Setting up a company in Vietnam can involve time-consuming and cumbersome processes normal for any developing nation. Investors who have no time but need a company immediately can purchase a shelf company, also known as a ready-made company. These are previously established firms that are being put up for sale and they are usually fully registered and meet legal compliance standards.
Find Out About Cekindo’s Shelf Company Services in Vietnam
If you are comparing choices, you should know that the average time to incorporate a company in Vietnam is 45 days. The average time to purchase a shelf company fully in compliance in Vietnam is 7 days.
What is a Shelf Company in Vietnam?
A shelf company is a registered entity that has been legally formed and has never conducted any business activities, with no assets and liabilities. With that said, the history of the company is clean as well.
Therefore, investors and entrepreneurs looking for a fast entry into the local market can easily purchase this type of company.
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Benefits of Shelf Companies
Many benefits come with buying a shelf company in Vietnam. We will name a few of them:
- As a rule, time that would normally be spent on the company incorporation process (45 days) would be saved.
- Cost reduction for starting a brand new company, i.e. startup fees, process fees, and specific initial overhead.
- You are able to acquire a full set of legal entity documents, including IRC and ERC, in a very short time.
- For certain business purposes, you will require a shelf company that has had some “age”, i.e. a company that was registered some time ago, in order to build trust and authority. For instance, if you want to set up branches in different regions globally, a brand new company will be perceived as a company with less credibility.
- To obtain immediate access to financial or banking services that new startups are not able to get.
- To enter a bid to qualify for governmental or semi-governmental tenders, you will need to show your company longevity with a trustworthy company profile.
Related article: Benefits that Can Only be Offered by Shelf Company in Vietnam
How to Buy a Shelf Company in Vietnam
Purchasing a shelf company in Vietnam is easy. However, it does not mean that you can take the process lightly. First of all, you need a thorough background check before any final decision.
This is because by purchasing a shelf company, you will also accept the direct liabilities and responsibilities that are undisclosed by potentially unreliable agencies.
We advise you to follow these subsequent steps:
- Seek detailed advice from Cekindo and its legal team to answer any doubts you may have.
- We will have our expert team go through and review all the processes and an agreement with you.
- Cekindo will prepare and submit an application dossier and help you secure your corporate documents of ownership in Vietnam.
This post was originally published on 6 December 2018, and was updated for readability and freshness in August 2022.
Originally published: 6 December 2018; last updated: 24 August 2022, 3:01 pm.
Cekindo is a leading provider of global market entry services in South East Asia. We are part of InCorp group, a regional leader in corporate solutions, that encompasses 8 countries in Asia, headquartered in Singapore. With over 500 legal experts serving over 12,000 Corporate Clients across the region, our expertise speaks for itself. We provide transparent legal consulting, setup and advice based on local requirements to make your business perfectly fit into the market with healthy growth.
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