Tiếng Việt
中文 (中国)
Vietnam has emerged as one of the most dynamic and rapidly growing economies in Southeast Asia, attracting businesses from around the globe. Its strategic location, favorable investment environment, and abundant workforce make it an appealing destination for entrepreneurs looking to set up new company in Vietnam.
However, navigating the process of setting up a new company in Vietnam can be complex, requiring careful planning and adherence to legal procedures. In this article, we provide a comprehensive guide to help aspiring entrepreneurs understand the steps involved in establishing a new company in Vietnam.
1. Choose the Type of Company in Vietnam
The first step to set up new company in Vietnam is to determine the type of entity that best suits your business needs. The most common types of companies in Vietnam are:
- Limited Liability Company (LLC): Suitable for small to medium-sized enterprises, offering limited liability protection to shareholders.
- Joint Stock Company (JSC): Ideal for larger enterprises seeking to raise capital through public offerings of shares.
- Representative Office: Allows foreign companies to establish a presence in Vietnam for market research, promotion, and liaison activities.
2. Reserve Company Name in Vietnam
Once you have decided on the type of company, you need to choose a unique name for your business and submit it for approval to the Department of Planning and Investment (DPI) in the province where your company will be headquartered. The name reservation process typically takes a few days.
3. Obtain Investment Registration Certificate (IRC)
Foreign investors looking to establish a company in Vietnam must obtain an Investment Registration Certificate (IRC) from the DPI. This certificate serves as official approval for the investment project and outlines the scope of activities, investment capital, and duration of the project.
4. Prepare Legal Documents
To register your company, you will need to prepare a set of legal documents, including:
- Articles of Association: This document outlines the company’s internal regulations, including governance structure, rights, and responsibilities of shareholders, and operational procedures.
- Charter Capital Declaration: Specifies the amount of capital contributed by each shareholder.
- Legal Representative Appointment Letter: Designates individuals authorized to act on behalf of the company.
- Lease Agreement: If leasing office space, a lease agreement is required.
5. Register the Company in Vietnam
With all legal documents in place, you can proceed to register your company with the DPI. The registration process involves submitting the required documents and paying the registration fee. Upon successful registration, you will receive a Business Registration Certificate (BRC), officially establishing your company in Vietnam.
6. Fulfill Tax and Licensing Requirements
After registering your company, you must obtain a tax code from the local tax authority and register for value-added tax (VAT) if applicable. Depending on the nature of your business, you may also need to obtain additional licenses or permits from relevant government agencies.
7. Open Bank Account
To conduct business transactions, you will need to open a corporate bank account in Vietnam. This account will be used for depositing capital, paying taxes, and managing day-to-day financial operations.
8. Register for Social Insurance and Health Insurance
As an employer, you are required to register your employees for social insurance and health insurance contributions with the local social insurance agency. This ensures that your employees have access to healthcare and other social benefits.
Conclusion
Set up new company in Vietnam offers exciting opportunities for entrepreneurs seeking to tap into the country’s vibrant market. By following the steps outlined in this guide and seeking professional assistance when needed, you can navigate the complexities of company registration and establish a successful business presence in Vietnam. With careful planning and diligence, your new company can thrive and contribute to Vietnam’s growing economy.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to info@aslgate.com.
ASL LAW is the top-tier Vietnam law firm for doing business in Vietnam. If you need any advice, please contact us for further information or collaboration.
