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.
SummaryWholly foreign owned companyFree Zone companyBranchRepresentative officeLocal companyJoint venture
Best use of company?Trading CompanyManufacturing CompanyBranch of a Global BankLocal market research/promotionFast Business SetupRestricted Industries
Legally tax exempt if properly structured?NoYesNoYesNoNo
Corporate bank account location?Citibank VietnamStandard Chartered VietnamVietcombankHSBC VietnamVietinBankStandard Chartered Vietnam
Client must travel to Vietnam?NoNoNoNoNoNo
Can secure trade finance?YesYesYesNoYesYes
Limited liability entity?YesYesNoNoYesYes
VAT payable on sales to local customers?YesYesYesNo local salesYesYes
Average total engagement costs?US$15,640US$16,490US$19,920US$16,700US$11,700US$18,240
Average total engagement period?4 months4 months6 months4 months6 weeks6 months
Accounting and tax considerationsWholly foreign owned companyFree Zone companyBranchRepresentative officeLocal companyJoint venture
Statutory corporation tax payable?20%20%20%20%20%20%
Must file an annual Vietnam tax return?YesYesYesYesYesYes
Effective corporation tax rate on net profits of US$250,000?20%20%20%20%20%20%
Must file annual financial statements?YesYesYesYesYesYes
Investment income is legally tax exempt in Vietnam?YesYesYesYesYesYes
Access to double taxation treaties?YesYesYesNoYesYes
Monthly GST reporting to the Government?YesYesYesYesYesYes
Legally tax exempt entity?NoYesNoYesNoNo
Dividends received are legally tax exempt?YesYesYesYesYesYes
Company registrationWholly foreign owned companyFree Zone companyBranchRepresentative officeLocal companyJoint venture
Vietnam resident director\partner\manager required?YesYesYesYesYesYes
Vietnam local shareholder required?NoNoNoNoYesYes
Minimum number of shareholders\partners?11Parent companyParent company12
Minimum number of directors/managers?111111
Minimum paid up share capital?US$10,000US$50,000NoneNoneUS$500US$50,000
Shelf companies available?YesNoNoNoYesNo
Time to incorporate a new entity?2 months2 months4 months1 month1 week4 months
Can easily convert to a local PLC company?YesYesNoNoYesYes
Can have preference shareholders?YesYesNoNoYesYes
Business considerationsWholly foreign owned companyFree Zone companyBranchRepresentative officeLocal companyJoint venture
Can invoice local customers?YesYesYesNoYesYes
Can hire local staff?YesYesYesYes, up to 10YesYes
Can rent local office space?YesYesYesYesYesYes
This entity can secure a residence visa for business owner?YesYesYesYesNoYes
Good entity for trademark registration?YesNoYesNoNoYes
Other useful informationWholly foreign owned companyFree Zone companyBranchRepresentative officeLocal companyJoint venture

Average monthly office rental? (US$ per sq m)US$46
Minimum statutory monthly salary?US$160
Average monthly US$ salary for local employees?US$270
Vietnam Dong deposit interest rate? (1 year average)7.70%
US$ deposit interest rate? (1 year average)0.25%
Overseas remittance currency controls?Yes
Public register of shareholders and directors?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Excellent
Withholding tax on payments to overseas shareholders?Corporate shareholders: 0% Individual shareholders: 5%

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