According to official World Bank figures, Vietnam’s Gross Domestic Product (GDP), which accounts for 0.27 percent of the global economy, was valued at 362.64 trillion US dollars in 2021. This rate is approximately 2.1 percent higher than it was in 2011. Due to Vietnam’s political stability and booming economy, foreign businesses have been pouring in recently and setting up businesses.
It can be challenging to register a new company in Vietnam. Choosing the legal entity that best suits your plan might be challenging, given the wide range of possibilities available. When entering the Vietnam market, an investor can choose from six different types of business: Representative Office; Limited Liability Company; Joint-Stock Company; Branch Office; Joint Venture; Public Private Partnership. You can set up a 100% foreign-owned entity for all entities.
However, instead of starting a business from scratch, you have another faster option: buying a “shelf company.” This is so that foreigners can quickly establish a market presence in Vietnam and stay up with the rapidly evolving Vietnamese market and realities. Additionally, shelf companies can make your company seem more reliable, inspiring confidence in your suppliers and clients.
What is a Shelf Company?
A shelf company is a previously legally established, registered entity with no assets or liabilities and is ready to purchase. The company’s past is also clean.
So, business owners and investors seeking a quick entry into the local market can easily buy this kind of company. The process involves changing the name and legal representative on the business registration certificates and the company bank account.
Purchasing a Shelf Company vs. Registering a Company in Vietnam
|Shelf Company in Vietnam||Registering a Company in Vietnam|
|Processing Time||The transfer procedure only takes two working days to complete. Usually takes seven days. However, the ownership of a shelf company is not yours until it is officially transferred through a legal agreement.||If all necessary documents are submitted, the entire business registration process in Vietnam takes between 30 and 40 working days after receiving the application.|
|Legal Entity Type||Typically, an LLC is offered for sale as a shelf business.||You can select the legal entity that best meets your requirements, including joint-stock companies, LLCs, branch offices, and representantive offices.|
|Customisation||Since a shelf firm is already built, it has all the characteristics that cannot be changed, except the name on the business certificate, which can be easily transferred.||When forming a new company, you can pick your company name, share contribution, industry, etc.|
|Banking Options||A shelf company typically comes with a functioning bank account||A bank account can only be opened after registering your company.|
|Costs||It can be more expensive than starting a business because ownership transfer and purchasing procedures need to be followed.||Registering a new business in Vietnam costs between 2,500 – 3000 USD.|
|Company History||A shelf company can have just been registered or been allowed to mature.|
They all need to be appropriately audited to ensure they have spotless records and no debt.
|A brand new company and it will take years for business owners to establish its history and credibility.|
|Ease of Process||You must go through two fundamental processes: the acquisition and the transfer of ownership.||Compared to purchasing a shelf company, you will need to take many more steps, such as filling out applications, getting licenses, scheduling appointments, and opening bank accounts.|
Related article: Benefits that Can Only be Offered by Shelf Company in Vietnam
Purchase A Shelf Company in Vietnam from Cekindo
Do you, therefore, demand a shelf company in Vietnam to make binding contracts immediately? Or are you interested in setting up a new business that allows you more flexibility?
Always choose the option that best fits your business needs and objectives.
InCorp Vietnam (formerly Cekindo) is a leading provider of global market entry services. We are part of InCorp group, a regional leader in corporate solutions, that encompasses 8 countries in Asia-Pacific, headquartered in Singapore. With over 1,100 legal experts serving over 15,000 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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