Vietnam company registration

Vietnam company registration

DOING BUSINESS IN VIETNAM

Since 2003, Healy Consultants Group PLC has assisted our Clients with forming their company in Vietnam. Our services include i) Vietnam business registration ii) government license registration iii) corporate bank account opening services in Vietnam iv) employee recruitment v) visa strategies and vi) office rental, manufacturing and warehousing solutions in Vietnam.

  1. While some industries still require foreigners to form a joint venture with a Vietnamese, Vietnam has consistently liberalized its foreign investment regime and most industries now allow full ownership by foreigners;
  2. The most popular corporate vehicle to do business in Vietnam is the limited liability company. Such entity can be registered by a single foreigner, who can be either a corporate or an individual;
  3. Foreigners starting a business in Vietnam are however required to appoint a resident director (known in Vietnam as the legal representative). To comply with this requirement, our Clients often request nominee services from Healy Consultants;
  4. While there is no official capital requirement to register a foreign-invested company in Vietnam, a minimum paid-up capital of US$10,000 is always informally required. This minimum amount can reach US$100,000 and above when our Client plans to sell locally manufactured products;
  5. Business setup in Vietnam is a time consuming process, taking at least four months to be completed due to the need to open a capital account and to obtain an investment certificate from the Department of Planning and Investment.
SummaryFast solution LLCForeign-owned companyFree zone LLCBranch officeRepresentative officeLocal companyJoint venture
Best use of company?Timely secure contractsUnrestricted industriesManufacturing and exportLosses consolidationResearch and marketingAll purposesRestricted industries
How soon can you invoice Clients\sign sales contracts?1 month4 months3 months3 monthsN/A1 month3 months
How soon can you hire staff?1 month4 months3 months3 months3 months1 month3 months
How soon can you sign a lease agreement?1 month4 months3 months3 months3 months1 month3 months
Travel required for business setup?NoNoNoNoNoNoNo
Recommended paid up share capital?US$50,000US$50,000US$50,000US$10,000US$10,000US$100US$50,000
Can secure trade finance?YesYesYesYesYesYesYes
Can bid for Government contracts?YesYesYesYesYesYesYes
Corporate bank account location?Citibank VietnamVietinbankHSBC VietnamVietcombankSCB VietnamCitibank VietnamTechcombank
Limited liability entity?YesYesYesNoNoYesYes
Average total engagement costs?USD37,050US$24,740US$20,775US$19,820US$16,700US$11,700US$18,740
Average total engagement period?8 months6 months5 months5 months4 months6 weeks5 months

See full table

Accounting and tax considerationsFast solution LLCForeign-owned companyFree zone LLCBranch officeRepresentative officeLocal companyJoint venture
Corporate tax rate on annual net profits?20%20%0-20%20%0%20%20%
Legally tax exempt entityNoNoYesNoYesNoNo
VAT payable on sales to local customers?10%10%10%10%N/A10%10%
Monthly VAT reporting to the Government?YesYesYesYesNoYesYes
Must file an annual tax return?YesYesYesYesYesYesYes
Must appoint an auditor?YesYesYesYesNoNoYes
Access to double taxation treaties?YesYesYesYesNoNoNo
Company registrationFast solution LLCForeign-owned companyFree zone LLCBranch officeRepresentative officeLocal companyJoint venture
Minimum number of shareholders/partners?1111112
Resident director/partner/manager required?YesYesYesYesYesYesYes
Maximum shareholding for foreigners?100%100%100%100%100%s0%99%
Minimum number of directors/managers?1111111
Shelf companies available?YesYesNoNoNoNoNo
Time to incorporate a new entity?2 weeks2 months2 months4 months2 months2 weeks2 months
Can easily convert to a PLC?YesYesYesNoNoYesYes
Can have preference shareholders?YesYesNoNoYesYesYes
Business considerationsFast solution LLCForeign-owned companyFree zone LLCBranch officeRepresentative officeLocal companyJoint venture
Can invoice customers in your company name?YesYesYesYesNoYesYes
Restrictions on nature of business activitiesNoYesYesYesYesNoNo
Good entity for trademark registration?YesYesNoYesNoYesYes
Can secure an import and export license?YesYesYesYesNoYesYes

Other useful information 
What will be included in my customer sales invoice?(click link)
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?No
Government foreign investment approval required?Yes, if > 51% foreign-owned
Average monthly office rental? (US$ per sq m)US$30
Minimum statutory annual salary?US$150
Average monthly US$ salary for local skilled employees?US$350
VND deposit interest rate? (1 year average)6%
US$ deposit interest rate? (1 year average)0%
Overseas remittance currency controls?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Good
Crowd funding available in this country?Yes

Temporary physical office solutions available?YesYesYesYesYesYesYes
Public register of companyYesYesYesYesYesYesYes
Public register of companyNoNoNoNoNoNoNo
You need a local resident as bank signatory?NoNoNoNoNoNoNo
Withholding tax on payments to individual shareholders?5%5%5%5%5%5%5%
Must file annual financial statements?YesYesYesYesYesYesYes
Withholding tax on payments to parent company?0%0%0%0%0%0%0%
Dividends received are legally tax exempt?YesYesYesYesYesYesYes
Security deposit to be kept with Government?NoNoNoNoNoNoNo
Must sign an office lease agreement?YesYesYesYesYesYesYes
Shareholders and directors documents to be attested?YesYesYesYesYesYesYes
Foreign director needs a tax number?NoNoNoNoNoNoNo
Foreign director needs a residence visa?NoNoNoNoNoNoNo
Shareholders and directors documents to be translated?YesYesYesYesYesYesYes
The entity will likely be regulated by?DPIDPIDPIDPIDPIDPIDPI
Sponsorship by a local citizen required?NoNoNoNoNoNoNo
Company can hire local staff?YesYesYesYesYesYesYes
Maximum number of staff allowed?No limitNo limitNo limitNo limitNo limitNo limitNo limit
Expatriate to local staff ratio?NoneNoneNoneNoneNoneNoneNone
Company can rent local office space?YesYesYesYesYesYesYes
Company can rent local office space?YesYesYesYesYesYesYes

Tell us what you need - we’ll send you a customised proposal in 5 hours!

Frequently asked questions

Contact us

For additional information on our company registration services in Vietnam, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon