Foreign investors understand that Vietnam offers fascinating business and investment opportunities. Trading companies are the ones many foreigners choose to set up due to the friendly policies and the trade agreements between Vietnam and other countries. We will elaborate on how you can start a trading company in Vietnam in this guide.
Requirements to Establish a Trading Company in Vietnam:
We are listing the three major requirements you will have to look into for your trading company setup in Vietnam:
Minimum Capital Requirements
In Vietnam, no specific laws mention that there is a required minimum capital requirement to establish a trading company in the country.
However, it is of general understanding that foreign investors must make sure that their contributed minimum capital is enough to provide for all their project expenses. According to recent updates by Vietnam’s Ministry of Trade this minimum is now 40000USD
1. Business Plan for Your Trading Company
Before you can set up a trading company in Vietnam as a foreigner, you need to prepare a business plan with the following details included:
- Your trading company’s business activities
- Strategies and methods of running your trading business
- Plan for business and market development
- Workforce and labour utilisation
- Review of efficacy and feasibility, as well as implications of your business plan
2. Your Trading Company’s Financial Plan
You will be required to present a financial plan to the authority in addition to your business plan.
Your financial plan shall contain the following key points and documents:
- Funding plans and sources
- Capital representation
- Relevant financial documents
- Income statement based on your latest audited financial statement (only for a trading company that has been incorporated for a minimum of 12 months)
Procedure to Set up a Trading Company in Vietnam
The process of the trading company setup in Vietnam can be divided into four steps:
1. Obtain an Investment License
Foreign investors must first apply for the investment license from the Department of Planning and investment. The processing time of getting an investment license in Vietnam takes approximately a month.
2. Acquire a Business Registration Certificate
Then, you should move on to get your enterprise registration certificate or business registration certificate. The Department of Planning and investment is also the authority that is in charge of issuing this certificate.
You can expect just 7 working days to obtain this certificate. Once the certificate has been issued to you, you must contribute your first capital investment within 90 days.
3. Apply for a Trading license
The third step for setting up your trading company in Vietnam is to apply for a trading license.
Application of a trading license requires you to submit required documents and fill an application form to the Department of International Trade. After that, the Department of International Trade will issue an official letter to you, which needs to be submitted to the Ministry of Industry and Trade.
Upon the receipt of your official letter, the Ministry of Industry and Trade will decide if they will approve or reject your application. They may also request additional documents from you if necessary. Once the application is approved, you should expect to receive your trading license within 7 working days.
4. Product or Sale Approval Registration
Do make sure that you only sell products and services that are permitted under the laws of Vietnam. And, some products will also require official registration by laws.
Once you have completed all the mentioned steps above, you can start importing goods with your trading company. You must be familiar with the Vietnamese custom regulations for your export and import. You should also ensure that all your shipping documents are complete and valid.
How Cekindo can Assist
Without the support of a trustworthy, knowledgeable, and experienced partner, establishing a trading company in Vietnam can be a complicated, time-consuming, and even discouraging process.
For foreign investors wanting to establish a trading company in Vietnam, Cekindo’s promise and commitment to you are consistent and clear.
Our team of experts at Cekindo will eliminate the complexity, reduce that time, and remove all the hassle and stress associated with your company formation.
Our professional consultancy services do not just encompass the initial company setup, but also give you continuous assistance to ensure the ongoing success of your business.
Cekindo takes a long-term and proactive strategic approach to ensure your company’s full compliance. Set up a consultation with us today. Fill in the form below.