Incorporate a Company in Vietnam |
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Despite an easing of licensing restrictions and bureaucracy, it remains challenging to incorporate a company in Vietnam. As one of the few corporate service providers who have the knowledge and understanding of this emerging market, Healy Consultants offers a comprehensive service for international entrepreneurs wanting to incorporate a company in Vietnam. The following information will help you determine whether it will serve your business needs to incorporate a company in Vietnam: |
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Advantages to incorporate a company in Vietnam |
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Investors incorporate a company in Vietnam to legitimately tap opportunities in this emerging market. |
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Vietnam's population of 88 million offers a ready market for for investors who wish to incorporate a company in Vietnam. |
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The country offers investors who wish to incorporate a company in Vietnam is a politically stable environment in which to do business. |
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Ongoing market reforms will continue to favour entrepreneurs who incorporate a company in Vietnam. In addition, Vietnam's accession to the World Trade Organisation (WTO) in early 2007 will further encourage investors to incorporate a company in Vietnam. |
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Foreign investors who incorporate a company in Vietnam can own 100% shares in the business in certain sectors. |
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Only one shareholder and director is required to incorporate a company in Vietnam. |
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There are no minimum capital requirements with Vietnam Company formation except for a few specific business lines such as real estate, insurance, aviation services, banking and securities. |
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Vietnamese companies recording tax losses can carry them forward for up to 5 years. |
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Disadvantages to incorporate a company in Vietnam |
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The World Bank and US-based Heritage Foundation have both ranked Vietnam as a difficult place to do business. (View the World Bank survey and the 2012 Index of Economic Freedom) |
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Investors who incorporate a company in Vietnam are faced with complicated and poorly-enforced company law. |
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To incorporate a company in Vietnam, the entity must be registered and regulated at provincial level, meaning tighter restrictions. |
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Foreign companies who incorporate a company in Vietnam are currently prohibited from operating 100% foreign-owned entities for the distribution of imported and domestically-produced goods, investment in the securities businesses, warehouse services and freight transport agency services, and maintenance and repair services of household equipment. |
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To obtain a representative office licence in Vietnam, a foreign company must have been in operation for at least one year from its date of incorporation in its home country. |
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Foreign investors who wish to incorporate a company in Vietnam should note that all foreign-invested companies in the country must have their financial statements audited annually. |
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A Vietnamese company must pay a corporation tax of 25% on all taxable income. The corporation tax applicable to business establishments conducting exploration and exploitation of oil and gas and other valuable and rare natural resources is between 32% and 50%. Preferential corporation tax of 20% and 10%, in the form of incentives, apply if the enterprise meets specific criteria. |
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| Contact Us | |||||||||||||||||
| For more information on how to incorporate a company in Vietnam, email email@healyconsultants.com or call (+65) 6735 0120.Back to Vietnam company formation page. | |||||||||||||||||
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