When starting a business in Vietnam, a nominee shareholder is not unheard of even though it is a relatively new investment method in Vietnam. However, surprisingly, it is also the most commonly used investment method in the country.
The majority of foreigners who have chosen this type of business entity because they believe that the nominee structure is more straightforward, gives them more identity protection against the competitors. Most importantly, it opens up more opportunities that are not fully open for foreign investments, as a nominee company is established based on the structure of a local company.
Continue reading and you will gain a deeper understanding of why starting a business in Vietnam with nominee shareholders can be a good idea for foreign investors.
Is It Safe to Use Nominee Arrangement for Business in Vietnam?
It is safe to use nominee arrangements in Vietnam only if foreigners exercise due diligence and seek assistance from reputable consultants.
Since there are so many unqualified agents on the market, it’s worth the effort to find a trustworthy, reliable consultant to facilitate the entire nominee arrangement process effectively.
A registered owner is the nominee shareholder of a nominee company.
The nominee shareholder is different from the nominee director (the beneficial owner) because even though the nominee shareholder is officially registered under the company, he or she is an unrelated third party who doesn’t own the shares and doesn’t have real control over the company.
The benefits of appointing a nominee shareholder are many folds. Here are some of them:
- Simplify the process when starting a business in Vietnam
- Remain anonymous and secure corporate privacy
- Divert the competitor’s attention
- Own full rights and control over the company
- Avoid legal implications and technical complexities because of its simple structure
- Eligible for tax benefits enjoyed by local companies
Nominee Arrangement Process in Vietnam
A nominee arrangement is one of the simplest forms of company formation when starting a business in Vietnam.
Below is a summarised set of requirements and steps of nominee arrangement.
- A foreign investor, also known as the beneficial owner, is required to make capital contributions to a local company under a local nominee’s name (the registered owner). The nominee must be a Vietnamese entity or a Vietnamese individual.
- Both parties should finalise the nominee agreement through a professional consultant.
- The registered owner or the local nominee is then responsible to perform duties on behalf of the beneficial owner. These tasks include daily business operations and administrations, procurement, legal issues, communications, and financial arrangements.
- All duties performed by the local nominee instructed, directed and supervised under the beneficial owner. The beneficial owner has full control of the nominee company.
Starting a Business in Vietnam with a Nominee Agreement Arranged by Cekindo
Cekindo is a professional business consulting firm offering a myriad of business services for local and global businesses of all kinds and sizes.
We provide expansive nominee agreement services including nominee shareholder, nominee director, and others, to protect your privacy by not appearing as the founder or shareholder when starting a business in Vietnam. All our nominees are trusted residents in Vietnam.
Furthermore, we always believe that a good start is key to great business accomplishments. Therefore, when you come to Cekindo, you will get a competitive advantage of complete confidentiality protection, quick establishment services and efficient setup, in addition to the nominee shareholder service.
Get in touch with us by filling in the form below now.