Vietnam’s economy has shown promising growth after gaining admittance in the World Trade Organisation (WTO). This opened doors to foreign investors as a result of which company formation in Vietnam started gaining immense popularity. Hi-tech companies have claimed that Vietnam offers a great potential for research and development as a result of its state-of-the-art infrastructure and highly adept workforce.
Vietnam also has a flourishing manufacturing sector due to the introduction of a large number of Open Economic zones and lucrative tax incentives.
The apparel industry in Vietnam is on its way to becoming a booming sector.
Vietnam has been a great beneficiary in the US-China Trade War and the same benefits have acted as a catalyst in the Vietnamese Economy whose positive impacts are far reaching in character.
Foreign investors who incorporate a company in Vietnam can own 100% shares in the business in certain sectors.
Vietnamese companies recording tax losses can carry them forward for up to 5 years
REQUIREMENT TO OPEN A COMPANY
Minimum 1 shareholder is required.
At least 1 director is required. Such director can be of any nationality. However, the company will require a legal representative who is a resident of Vietnam.
Minimum capital depends on the business line, however the average share capital for a LLC is USD 10,000.
Local Registered Address.
List of proposed names.
For Individual Shareholders: Copy of passport and identification documents, address proof and contact details.
For Corporate Shareholders: Details of Authorized person, Copy of Certificate of Incorporation, AoA, MoA and PAN card or similar document, Shareholding pattern and address proof.
For Proposed Directors: Copy of passport and identification documents, address proof, contact details.
Documents proving the financial capacity and experience of investor.
Preparation of Company documents including M&AA (memorandum and articles of incorporation) company minutes, and list of members, etc.
Obtaining Investment License from authority
Deposit of Capital in bank account
Obtain the Seal and Certificate of Seal Sample Registration
Assistance in applying for Investment Registration Certificate (IRC), Enterprise Registration Certificate (ERC) and Trade License.
Opening of Bank Account
Translation Services (if required)
Other Maintenance & Compliance Services:
Providing a registered office address
Book keeping and preparation of financial statements
Filing income tax returns, VAT returns and annual returns"
The exact time period for company formation in Vietnam varies depending on objectives, scale, location, time, and schedule for project execution of the investor and project decisions on investment policies of the competent authorities.