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Trang Chủ - BUSINESS AND TRADE - Basic Notes For Company Formation In Vietnam

Basic Notes For Company Formation In Vietnam

BY LNP Legal

Foreign investors should pay attention to factors such as the type of company, field of investment, establishment process and minimum capital requirement for company formation in Vietnam.

Read more: What Is Advantage Of Opening Representative Office In Vietnam?

Mục lục

  • 1. What fields are foreign investors allowed for company formation in Vietnam?
  • 2. Why do we need to invest in Vietnam now?
  • 2. What forms of business is available to foreign investors in Vietnam?
    • 2.1. Limited liability company
    • 2.2. Joint stock company
    • 2.3. Partner
  • 3. Process of Company formation in Vietnam
  • 4. Capital requirements when investing in Vietnam
  • What services does LNP Law provide to customers/foreign investors in Vietnam?
    • LNP Law provides comprehensive legal services including:

1. What fields are foreign investors allowed for company formation in Vietnam?

Restriction on receiving investment has decreased to almost zero. Foreign investors are allowed to invest in establishing comany in fields such as Vietnamese investors. However, it is necessary to note the law provisions on limit of capital contribution ratio in the companies. The majority of fields now allow foreign investors own 100% of the capital in the company. However, some industries have conditions such as advertising, film services ,…. that investors capital still limit.

2. Why do we need to invest in Vietnam now?

Vietnam, country with a stable political system, is one of the countries with the fastest growing economy. By this time, Vietnam has signed free trademark agreement with different countries and developed markets. Vietnam is one of the most participating countries in FTAs in the world, with 17 FTAs.

Moreover, Vietnam is on the way becoming the manufacturing centre for international companies due to their advantage of cheap labour costs and infrastructure development. Vietnam could be a good place to shift from China.

Basic Notes For Company Formation In Vietnam 1
Vietnam Law Firm – Law Firm in Vietnam – Vietnam Business Law Firm for Doing Business in Vietnam and oversea investment

2. What forms of business is available to foreign investors in Vietnam?

Foreign investors could form in Vietnam under the following forms:

2.1. Limited liability company

An investor can set up a limited liability company in one of two forms

– One member limited liability with 100% foreign capital or

– A two-member limited liability between a foreign investor and at least one other capital contributor is a domestic investors or foreign investor.

2.2. Joint stock company

A joint stock company is an enterprise established by the shareholders holding shares. A joint stock companies must have at least 03 shareholders. The companies can have 100% foreign capital or contribute capital between foreign investors and domestic investors.

2.3. Partner

This is a form of investment applied to a number of industries with conditions that limit the reception of foreign investment. A foreign investor needs a Vietnamese individual or organization partner to act as the joint venture partner. In addition, foreign investors can also invest through:

– Business cooperation contract (BCC);

– Public private partnership contract (PPP);

– Contract to build infrastructure such as (BOT), (BT), (BTO);

– Open representative office in Vietnam.

Reading more: What Is Advantage Of Opening Representative Office In Vietnam?

3. Process of Company formation in Vietnam

Foreign investors establish a companies in Vietnam through 2 steps

1. Registration for issuance of Investment Registration Certificate (IRC)

2. Register to issue a Enterprise Registration Certificate (ERC)

After being granted the two above documents, investors carry out works like opening capital account, transferring invested to companies account, fulfilling tax obligations to officially put the companies into operation.

company

4. Capital requirements when investing in Vietnam

Vietnam law does not specify the minimum and maximum capital amount for investment activities. However, to ensure convenience during the investment process, foreign investors should have minimum investment capital at least 100 million VND. There are some business lines in Vietnam that have a minimoun capital requirement such as: real estate business with 20 billion VND (250.000 USD).

What services does LNP Law provide to customers/foreign investors in Vietnam?

With more than 10 years of experience and a team of enthusiastic and professional staff. LNP Law has provided services to many clients investing in Vietnam. Using our services, customers will receive the results of a legal and effective company established in Vietnam at the most competitive price.

LNP Law provides comprehensive legal services including:

  • Business Formation & Corporate Law
  • Legal advice for investor in Vietnam
  • Legal advice for Real Estate transactions
  • Trademark Registration
  • Patent Registration
  • Copyright Registration
  • Copyright infringement
  • International trademark registration
  • Franchise in Vietnam.
  • Legal advice for Marriage and family
  • Dispute resolution
  • Regular legal advice

*** Other service of LNP LAW – full service Vietnam law firm ***

 

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Notes to company formation in Vietnam M&a
How to open company in Vietnam Risks and solution
Open representative office in Vietnam Contract consultancy
Intellectual property services Opening branch of foreign company in vietnam
Trademark in Vietnam Legal guide ror opening trading company in vietnam
Copyright in Vietnam 100 foreign invested company in vietnam

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