What are conditions of Directors of a foreign owned company in Vietnam?

What are conditions of Directors of a foreign owned company in Vietnam?

How many foreign director can we appoint? Can we appoint one as legal representative with local work permit and one foreign director without local work permit? Can the owner be an organization? Can we have both legal representatives to have work permit exemption?

#1) How many foreign director can we appoint?

According to Enterprise Law 2014, it can be registered more than 1 legal Rep of company. So it is possible if you want to register 2 foreigners to be legal representatives.

#2) Can we appoint one as legal representative with local work permit and one foreign director without local work permit?

In Vietnam legal representative of company will need to have labor contract. There are some cases that foreigners can have Work permit exemption like owner of company or member of board in corporation.

Therefore, if you wish to register one legal representative that need to have work permit, he/she needs to reside in Vietnam  (residence means staying at least 183days/ year) . The other legal rep should be owner of LLC to have work permit exemption ( This legal rep does not need to stay in Vietnam or staying in Vietnam no more than 90days, for every stay should be less than 30days).

What are conditions of Directors of a foreign owned company in Vietnam?
What are conditions of Directors of a foreign owned company in Vietnam?

#3) Can the owner be an organization?

Yes, they can. There are 2 types of company structure in Vietnam – LLC or Joint stock company ( Corporation). For LLC, we have Limited Liability Company with sole member and Limited Liability Company with 2 members upward. Member can be individuals or organizations and total member of LLC should not be more than 50.

For Joint Stock Company or Corporation, it is compulsorily required to have at least 3 shareholders to form this company.

#4) Can we have both legal representatives to have work permit exemption?

Such a good question! However, I am afraid NOT, as advised in my previous email, by law it is required that one legal rep needs to be resided in Vietnam (staying in VN at least 183days), therefore we can secure for 01 legal rep to have work permit exemption only ( with a letter of explanatory that the legal rep does not stay permanently in VN and he/she does not stay over 90days per year).

In case you want to have 2 members of company to have work permit exemption, you may think about an option to rent a Vietnamese to be legal rep, and the 2 members do not take any position in the company.

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