As a foreign investors in Vietnam, every entrepreneurs need to know which legal structure is best for their business. Check out our comprehensive guide by GBS on how to choose.
In order to do business legally in Vietnam, you should register your business with the appropriate authorities. In order to do this, you first need to decide which legal form is suitable for your business. When trying to choose the most suitable legal form for your business, you need to consider the following:
What would be your personal financial liability if your business fails to do well? Your personal financial liability as owner of the business would be different according to the legal form you choose. To learn about your personal financial obligations, read your legal form options according to Enterprise Law below.
- What kind of tax obligations you would have depending on the legal form of your business?
- What kind of reporting obligations you would have under each legal form?
- How will your potential to raise capital from formal financial institutions (banks, credit funds, leasing companies, etc.) differ according to the legal form of your business?
What will be the management structure of your business based on the legal form you choose?
Under the Enterprise Law, your options you have in respect of the legal form of your business are the following:
- Private enterprise
- Limited liability company
- Shareholding company
You can find basic information about the legal forms of business in this Portal. We also advise you to study the legal documents: Enterprise Law and the Government Decree on Business Registration. In case you do not feel confident about making the correct choice about the legal form of your business, we encourage you to discuss your options with a lawyer and with other business owners or contact GBS at info@gbs.com.vn for advice.
Collecting as much information as possible from as many qualified persons as possible would help you much. Money and time you might have to invest in choosing the suitable legal form for your business at the start can save you much more money or effort afterward.
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Source: Vietnam Insider