Launching a new business in Vietnam as a foreigner involves six distinct steps. You have the option to establish either a 100% foreign-owned company or a jointly foreign and domestic owned enterprise.
According to Sophie Dao, Senior Partner of GBS – an investment consulting firm in Vietnam, the preferred corporate structures include Joint Stock Companies (JSC) for intricate corporate needs, Limited Liability Companies (LLC) for standard foreign investments, or Representative Offices (Rep. Office) for market research in Vietnam.
If uncertain about the suitable structure, GBS is available to provide guidance on capital investment, full foreign ownership options, and shareholder requirements.
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Hanoi Opera House. Credit: Olivier OchanineThe following comprehensive guide outlines the six crucial steps to kickstart your business in Vietnam.
1. Prepare Necessary Documents for Application:
Ensure you have a lease agreement for your company’s registered location, proof of financial capacity, and investor documents notarized or legalized from your home country.
2. Apply for an Investment Registration Certificate (IRC):
Start by registering an “investment project,” outlining the purpose of your foreign company. The resulting IRC allows you to commence the establishment of your business in Vietnam, akin to the concept of “Foreign Investment Approval” in other jurisdictions.
3. Apply for an Enterprise Registration Certificate (ERC):
Subsequent to obtaining the IRC, proceed with the application for an ERC, formalizing the registration of the investment project and marking the beginning of your company’s establishment.
4. Complete Initial Post-Establishment Registrations:
Conduct post-establishment procedures, such as making public notifications of your company’s establishment, obtaining and providing the company seal, announcing the seal specimen, and drafting the decision for the appointment of the general director or director.
5. Submit Additional Post-Licensing and Sub-Licensing Applications:
Depending on your business activity, apply for additional licenses or sub-licenses to comply with specific sector, industry, and business line requirements.
6. Contribute Charter Capital:
Fulfill the critical requirement of charter capital, the company’s enterprise capital, by ensuring members or shareholders fully contribute within 90 days from the date of the company’s establishment, as specified in the charter.
By diligently following these six key steps, foreign entrepreneurs can navigate the complexities of launching a business in Vietnam, ensuring a strong foundation for success in this dynamic market.
Would you like to speak to one of GBS’s advisers over the phone? Call, SMS, Viber, WhatsApp, iMessage: +84903189033 or just submit your details and we’ll be in touch shortly. You can also send an email to: sophie@gbs.com.vn if you would prefer.
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Source: Vietnam Insider