Vietnam with its rapidly developing economy, strategic geographical location, and diverse workforce, has become an unmissable destination for both local and international businesses. This is why Company Setup in Vietnam has garnered more attention than ever before.
Recognizing the importance of business establishment and the intricate of the procedure, Vina Bookkeeping emerged to address these needs. The team of experts at Vina Bookkeeping will assist you throughout the entire process Company Setup in Vietnam. From adhering with legal regulations to strategic planning, we are dedicated to supporting you in achieving your business goals in this thriving market.
Company Setup in Vietnam
Company Setup in Vietnam refers to the process of legally establishing a business entity in Vietnam. This organization could be different types of business structures. Such as limited liability companies, joint-stock companies, partnerships, and more,.. Depending on the specific needs and goals of the business owner or investors. This entity is then eligible to operate in diverse sectors, from manufacturing to services, in the Vietnam market.
Deciding on Business Incorporation in Vietnam
Establishing a company in Vietnam is an important decision that should be carefully considered. Here are some situations and reasons for when to Setup a company in Vietnam:
- Venturing into New Markets: If you’re an international investor eyeing the Vietnamese market, creating a company serves as a gateway to start investment activities while adhering to the country’s rules and regulations.
- Capital Raise: Should your business concept demand considerable capital for its inception and ongoing operations, having an official company structure can aid in securing finances from potential investors or stakeholders. Company structures like JSC or LLC are optimal for gathering substantial funds.
- Tax Compliance and Invoice: For businesses that deal with clients necessitating VAT invoices for their tax-related deductions, having an established company ensures you cater to these needs while upholding the legal requirements.
- Business Legitimacy: Partners, suppliers, and clients may favor engaging with official business entities. Establishing a company guarantees prestige in business transactions. Such a legal structure can competently enter, formalize, and carry out contracts in a lawful setting.
- Organized Financial Management: Launching a company paves the way for a more systematic and transparent financial record-keeping system. This plays a pivotal role in the smooth functioning of financial management and overall business operations. Besides, it aligns with the set accounting and taxation standards, safeguarding you from potential legal and financial pitfalls.
Why Should You Set Up a Company in Vietnam?
- Legal Protection: Forming a company in Vietnam brings it under the purview of local laws, offering legal status and protection. The Vietnamese Enterprise Law provides a structured legal framework, ensuring businesses operate within legal confines, minimizing potential legal disputes and uncertainties.
- Structured Management: Company Setup in Vietnam mandates the creation of a robust organizational setup with delineated roles and tasks. This well-structured setup promotes better management practices and brings clarity in the decision-making mechanism.
- Independent Assets: A separate legal entity possesses assets distinct from personal assets of its owners or those of other legal entities. This separation provides financial protection for the owners. Additionally, it will assist the business in independently managing its own assets.
- Economic Leverage and Credibility: Incorporating paves the way for various economic perks. It widens horizons for expansion and adaptability. Moreover, it accentuates the company’s professional standing. Stakeholders, be it clients, collaborators, or investors, often view registered companies as more trustworthy and professional, increase potential business prospects and financial gains.
In short, opting for Company Setup in Vietnam not only grants legal shields but also lays a solid groundwork for effective governance, fiscal accountability, and enhance commercial prospects.
Documents Required for Company Setup in Vietnam
Below are the necessary documents for establishing a company in Vietnam, corresponding to each type of company:
Private Enterprise
- Application for business registration.
- Copy of personal legal documents of the sole proprietor.
Partnership Company
- Application for business registration.
- Company charter.
- List of members.
- Copies of the following documents:
- Personal legal documents for members who are individuals.
- Legal documents of the organization for members that are organizations.
- Legal documents of the individual representing by proxy and the document appointing the representative.
- For foreign organization members, a copy of the organization’s legal documents must be consular legalized.
- Investment registration certificate in case the business is established or participated in by a foreign investor or an economic organization with foreign investment.
Joint-stock Company
- Application for business registration.
- Company charter.
- List of founding shareholders and list of foreign investor shareholders.
- Copies of the following documents:
- Legal documents of the legal representative of the company.
- Personal legal documents for company members, founding shareholders, and foreign individual investors.
- Legal documents of the organization for company members, founding shareholders, and foreign institutional investors.
- Legal documents of the individual representing by proxy for the member, founding shareholder, foreign institutional investor, and the document appointing the representative.
- For foreign organization members/shareholders, a copy of the organization’s legal documents must be consular legalized.
- Investment registration certificate in case the business is established or participated in by a foreign investor or an economic organization with foreign investment.
Limited Liability Company (LLC)
Single-member LLC:
- Application for business registration.
- Company charter.
- Copies of the following documents:
- Legal documents of the individual representative according to the law of the company.
- Personal legal documents for the company owner if they are an individual.
- Legal documents of the organization for company owners that are organizations (except when the state is the owner).
- Legal documents of the individual representing by proxy and the document appointing the representative.
- For foreign organization owners, a copy of the organization’s legal documents must be consular legalized.
- Investment registration certificate in case the business is established by a foreign investor or an economic organization with foreign investment as specified in the Investment Law and its guiding documents.
LLC with two or more members:
- Application for business registration.
- Company charter.
- List of members.
- Copies of the following documents:
- Legal documents of the individual representative according to the law of the company.
- Personal legal documents for company members or legal documents of the organization for members that are organizations.
- Legal documents of the individual representing by proxy for organizational members and the document appointing the representative.
- For foreign organization members, a copy of the organization’s legal documents must be consular legalized.
- Investment registration certificate in case the business is established or participated in by a foreign investor or an economic organization with foreign investment as specified in the Investment Law and its guiding documents.
Company Setup in Vietnam Service at Vina Bookkeeping
At Vina Bookkeeping, we commit to support customers from the planning stage to the completion of the company incorporation process. Recognizing the complexity of Company Setup in Vietnam, we provide thorough support to allow you to prioritize sustainable business growth.
Consultation on Business Types
The initial yet vital phase of business operations is determining the appropriate entity structure. This decision can significantly influence every aspects of the business, from governance to its long-term vision. We listen and comprehend your business requirements. Our mission is to guide you in selecting the best-suited business structure, ensuring legal compliance while maximizing potential business advantages.
We examine critical factors such as member rights and responsibilities, management model, required charter capital, and potential growth avenues. We are dedicated delve into the advantages and challenges of each business type. This comprehensive understanding allows you to make decisions that align seamlessly with both the legal requirements and your business goals.
Document Preparation & Registration Process
We recognize the complexity of this process and the significance of alleviating the legal burden for you.
Document Preparation:
- We guide you in providing the necessary information to compile the business registration dossier.
- Assisting in organizing and preparing the dossier in accordance with regulations.
Completing Application Form:
- Preparing the registration dossier, including the charter, establishment contract, shareholder list, and relevant details.
- Advising on how to fill out the application forms and adjusting documents as required.
Document Submission
- Submit the business registration documents to Department of Planning and Investment.
- Actively track and execute the steps dictated by the regulatory agency to ensure the smooth progression of the registration process.
Establishing Bank Account and Tax Registration
- Corporate Bank Account Setup: We facilitate the opening of your company’s bank account, a pivotal step for financial operations.
- Tax Registration: Vina Bookkeeping assists in acquiring your tax identification number and the essential business certifications.
Legal & Financial Advisory
- Legal Counseling: We offer insights into the legal regulations to business entities, covering both establishment and operational facets. Our goal is to ensure your company operates within legal framework, laying down a strong legal foundation.
- Financial & Tax Guidance: We stand by you in financial management, ranging from maintaining the ledger to cash flow tracking. Additionally, Vina Bookkeeping provides tax consultation to guarantee adherence to all periodic tax duties.
Why Choose Vietnam Company Setup Service at Vina Bookkeeping
⭐ Professionalism and Extensive Experience
Vina Bookkeeping is proud to have a team of qualified specialists with in-depth understanding of legal requirements and Vietnam Company Setup procedures acquired over years. We pledge to provide our clients with excellent and efficient comprehensive service. When you utilize our services, you will get advice on the best company type depending on the requirements and objectives of your company. In addition to providing you comprehend different corporate forms, we also offer strategic counsel for your well-informed decisions.
Additionally, we provide thorough legal advice as well as technical support for compiling and assembling required documentation. Our team of professionals may assist you with document preparation, registration application submission, and other related tasks. We commit to provide convenience and ensure that every step is in compliance with legal regulations.
⭐ Time and Effort Savings
Vietnam Company Setup process involves numerous complex steps. From document collection and preparation, to application submission and tracking the approval process. Doing this on your own can consume significant time and effort.
By utilizing the comprehensive services offered by Vina Bookkeeping, you can delegate the responsibility to a skilled team. This allows you to focus on your core business activities without the need to oversee the complexities of the company formation process. Vina Bookkeeping team possesses the expertise and understanding of the procedure. Which ensures the efficient and accurate completion of each phase.
⭐ Effectiveness and Cost Efficiency
Choosing Vietnam Company Setup service not only saves your time and effort but also reduces cost. While there is a fee using these services, when weighed against the time and effort required for self-execution, this cost proves to be reasonable. You are spared the necessity of delving into and mastering the legal regulations related to company establishment. Additionally, you can avoid the potential for mistakes or misallocation of resources that may occur with a self-executed approach.
With the guidance of experienced specialists at Vina Bookkeeping, the business registration process is conducted in full compliance with the law right from the start. This effectively reduces the risk of encountering undesirable legal complications in the future.
Difference Between Company and Individual Business Household
Many entrepreneurs feel confused when considering between establishing an individual business or a company. Vina Bookkeeping provide analyses of the differences between these two forms, assisting you in making an informed decision.
| Factor/Characteristic | Company Setup | Establishment of business households |
| Legal Entity Status | Have legal status and have limited liability within the capital contribution | No legal entity status, liabilities met by owner’s personal assets |
| Issuing Invoices | Can issue and export VAT deductible invoices | Cannot issue invoices |
| Tax Accounting Declaration | Easily with professional accounting services | Tax declaration is required |
| Presumptive Tax | Not taxed based on revenue | Apply taxes based on revenue |
| VAT Tax | Can deduct taxes and indirectly collect tax from customers | Must bear taxes based on fixed rate |
| Establishment & Operation | Simple and low cost, but management and operation require many processes | Easy setup and management |
| The Need of Invoicing | If your customers are individuals and you do not need to issue invoices with high deductible value-added tax invoices, then opting for a sole proprietorship is a suitable choice. | |
| Members & Shareholders | Unity and cooperation are essential | None |
To choose the right type, a detailed assessment of the advantages and limitations of each form is essential. Moreover, seeking advice from legal experts can provide further clarity. Based on your financial capability and management skills, you can then determine the best option for your business.
Some frequently asked questions when establishing a company in Vietnam
1. What expenses will you pay when setting up a company?
When proceeding with the establishment, you will need to cover:
- The fee for business registration;
- The cost associated with publishing and posting the company’s information on the official national website;
- The fee for the company’s seal/stamp (this is optional and may not be necessary);
- The expense of purchasing a digital signature and electronic invoices for the business.
2. What should you be aware of when declaring taxes during company formation?
- Value-added tax: Even if the business does not have import-export invoice transactions, when tax declaration time comes, submitting the value-added tax (VAT) declaration cannot be missed.
- Report on invoice usage: Even if there have not been any value-added invoices issued (and invoice issuance notification has been completed), the company needs to declare.
- Annual financial report: Regardless of the absence of business transactions, the company still needs to prepare an annual financial report.
Fulfilling tax obligations is a responsibility and mandatory for all businesses. All tax regulations must be adhered to, and obligations should be met on time. Companies should especially be attentive to tax submission deadlines to avoid penaltiesincreasing over time.
3. Where to submit company registrtraion document?
To register a business, you need to visit the business registration office under the provincial Department of Planning and Investment where you want to establish your company headquarters.
