Starting a company with foreign investment in Vietnam
Vietnamese law about foreign investment and business creation allows foreign citizens or entities to take a part in a Vietnamese limited liability company as a founder. Process of starting is the same for all types of companies — first step is to establish the company with a Vietnamese founder, and second one is to transfer their rights, obligation and share capital to foreign investors.
Common point for all types of Limited Liability Companies in Vietnam
❖ Legislatively, the amount of authorized capital is not regulated, but practice shows that authorized capital of less than the indicated amounts entails a refusal to issue work permits
❖ The members are responsible for the limits of their share in authorized capital
❖ Each company starting in Vietnam must pay:
- Annual Excise tax at the rate of 2 000 000 VND (90 USD) /per year;
- USB flash drive for registration in the tax department and submission of tax reports — 2 500 000 VND (110 USD) /per 18 months;
- If you don’t have a trusted Vietnamese citizen who will allow personal information for the company registration, we can provide such a person. The cost for this starts from 300 USD /per year, depending on his shares.
Prices and terms depend on the amount of share in authorized capital of foreigners:
I. Limited Liability Company from 1 to 50% authorized capital of foreign investment
— Number of member of the company is no more than 50 by the law, but in practice is no more than 5 persons;
— Minimal authorized capital for each member is 11 000 USD. In order to make a capital contribution, foreign investors have to open a personal bank account in any Vietnamese bank. We offer Techcombank, Vietcombank, VP bank. These are the most convenient banks for this purpose. If you cannot carry out making capital contribution by yourself for any reason, we can request to make this procedure using borrowings (about 3%);
— Foreign investor can be a director with authorized signatory in the bank;
— Participation of Vietnamese co-founder in economic activities of the company — A Vietnamese member is a rightful participant of the company and he has the right to take a part in economic activities of the company, any further action with the company you may perform only if there is his signature in the Board of Directors Record. Our company provides a trusted person who will not claim to take part in the economic activities of the company. In any case, we will prepare necessary documents for total safety of foreign investors;
— The term of registration — 15 working days;
— Types of business without the necessity of additional permissions:
- Hospitality business (you can build or rent hotel);
- Restaurant, cafe, catering (without alcohol);
- Travel agency (only sales tours of other companies);
- Advertising;
- Activity is connected with IT sphere;
- Consulting services is not connected with manufacture;
- Production and sales wheat products.
Advantages:
The company with share of foreign investor in authorized capital no more than 50% don’t need to get permission for the foreign investment and some additional activities. If you need additional activities they’re cheaper and quicker.
Disadvantages:
There is just one drawback, but it’s significant — Vietnamese partners can interfere with the business. For this reason, our company prepares a set of documents for the safety of foreign investors. As such, this drawback is eradicated. Nevertheless, there are skeptics who don’t like Vietnamese participation.
Price for registration of the company is 700 USD.
II. Limited Liability Company from 50 to 99% authorized capital of foreign investment
— Number of member of the company is no more than 50 by the law, but in practice is no more than 5 persons;
— Minimal authorized capital for each member is 11 000 USD. In order to make a capital contribution, foreign investors have to open a personal bank account in any Vietnamese bank. We offer Techcombank, Vietcombank, VP bank, because these are the most convenient banks for this purpose. If you cannot carry out making capital contribution by yourself for any reason, we can request to make this procedure using borrowings (about 3%);
— Foreign investor can be a director with authorized signatory in the bank;
— Participation of Vietnamese co-founder in economic activities of the company — A Vietnamese member is a rightful participant of the company and he has the right to take a part in economic activities of the company, any further action with the company you may perform only if there is his signature in the Board of Directors Record. Our company provides a trusted person who will not claim to take part in the economic activities of the company. In any case, we will prepare necessary documents for total safety of foreign investors;
— The term of registration — 15 working days;
— Types of business without the necessity of additional permissions:
- Hospitality business (you can build or rent hotel);
- Restaurant, cafe, catering (without alcohol);
- Travel agency (only sales tours of other companies);
- Advertising;
- Activity is connected with IT sphere;
- Consulting services is not connected with manufacture;
- Production and sales wheat products.
Advantages:
You are the sole owner and managing director of the company.
Disadvantages:
Higher price and getting additional activities and long term.
Price for registration of the company is 1 100 USD.
III. Limited liability company 100% authorized capital of foreign investment
— Number of members of the company is no more than 50 by law, but in practice are no more than 5 persons;
— Minimal authorized capital for each member is 18 000 USD. In order to make a capital contribution, foreign investors have to open a personal bank account in any Vietnamese bank. We offer Techcombank, Vietcombank, VP bank. These are the most convenient banks for this purpose. If you cannot carry out making capital contribution by yourself for any reason, we can request to make this procedure using borrowings (about 3%);
— Foreign investor can be a director with authorized signatory in the bank;
— Participation of Vietnamese co-founder in economic activities of the company. Vietnamese member does not participate;
— The term of registration — 45 working days. Companies with shares in foreign investment more than 50% in authorized capital must get permission for its contribution;
— Types of business without the necessity of additional permissions:
- Hospitality business (you can build or rent hotel);
- Restaurant, cafe, catering (without alcohol);
- Travel agency (only sales tours of other companies);
- Consulting services is not connected with manufacture.
Advantages:
You are the sole owner and managing director of the company.
Disadvantages:
Higher price and getting additional activities and long term.
Price for registration of the company is 2 500 USD.
Trust «Leadership TSC» your business routine and get the result on time.
Read also:
Documents for starting company in Vietnam
