Foreign companies have been flocking to Vietnam in recent years due to its political stability and unstoppable economy. The GDP of the country grew 7% in 2018 with significant growth in many sectors, particularly in manufacturing, information technology, and foreign direct investments. The fact that Vietnam is going to remain the fastest-growing ASEAN economy makes the idea of buying a shelf company become more and more prominent. This is because a shelf company allows foreigners to have a market presence in Vietnam almost immediately and to keep pace with the fast-changing Vietnamese market and realities.
Of course, whether or not a shelf company is the right choice will be influenced by a number of factors.
This article provides a comparison between registering a company and purchasing a shelf company in Vietnam. Read on so at the end you will be able to consider thoroughly all the factors and finally choose the one that is best for you.
Purchasing a Shelf Company vs. Registering a Company in Vietnam
|Shelf Company in Vietnam||Registering a Company in Vietnam|
|Processing Time||The transfer process takes only approximately 2 working days. A shelf company is ready for use right away. However, the ownership of a shelf company is not yours until it is officially transferred through a legal agreement.||The entire company registration process in Vietnam takes about 7-14 working days after the application has been submitted, provided that all required documents are complete.|
|Legal Entity Type||Usually only the local LLC is available for purchase in the form of shelf company.||You can choose the legal entity that suits your needs, from single-member LLC and multi-member LLC to representative office and joint-stock company.|
|Customisation||A shelf company is a ready-made company and thereby it comes with all the details that you can’t change. You can, however, change at additional costs and time.||While you register for a new company, you can choose your own company name, amount of shares, etc.
Of course, if you change your mind and would like to change the details as well, additional costs will be charged.
|Banking Options||Usually a shelf company will have an established bank account attached. The bank accounts that come with Cekindo’s shelf companies are equipped with online banking access as well upon request.||You can open a local bank account only after you have registered your company.|
|Costs||Can be more expensive than setting up a company on your own – because you will need to go through the purchase and ownership transfer processes.
However, Cekindo offers shelf companies at reasonable prices that suit your requirements.
|You can set up a new company inexpensively. The key here is to find a reliable provider with reasonable setup price.|
|Company History||A shelf company can be a newly registered one or one that has been left to age.
All of them have clean records with no business activities. But, the aged shelf company might stand out more as a company with more history and credibility.
|A brand new company and it will take years for business owners to establish its history and credibility.|
|Ease of Process||There are two main procedures that you have to go through: the purchase and the ownership transfer.
All complex paperwork will be dealt with by Cekindo.
|You will need to go through a lot more steps compared to buying a shelf company, from submitting application to acquiring licenses and from making appointments to opening a bank account.
However, it is also possible to engage an experienced third party to handle this daunting paperwork for you, like Cekindo.
Related article: Benefits that Can Only be Offered by Shelf Company in Vietnam
Purchase A Shelf Company in Vietnam from Cekindo
So do you need a shelf company in Vietnam to make crucial contracts immediately? Or do you want to register a new company that gives you more flexibility?
One important thing to bear in mind is that you should always go with the one that suits your current business requirements and goals.
Whatever you decide, Cekindo has a team of professionals who can provide you with the best shelf company or assist you with company registration in Vietnam, every step of the way. Get in touch with us now.