Vietnam company registration

DOING BUSINESS IN VIETNAM IN 2022

pay fee by instalmentsbusiness setup without travelGuaranteed solutions

Since 2003, Healy Consultants Group PLC assists our Clients with Vietnamese business set up. Our services include i) Vietnam company registration ii) determining the optimum regulatory licence iii) multi-currency corporate bank account opening iv) employee recruitment and residence visa strategies and v) office rental and warehousing solutions.

Compare different Vietnam entities Fast solution LLC Foreign-owned company Free zone LLC Representative office Local company Joint venture
Best use of company? Timely secure contracts Unrestricted industries Manufacturing and export Research and marketing All purposes Restricted industries
How soon can you invoice Clients\sign sales contracts? 1 month 4 months 3 months N/A 1 month 3 months
How soon can you hire staff? 1 month 4 months 3 months 3 months 1 month 3 months
How soon can you sign a lease agreement? 1 month 4 months 3 months 3 months 1 month 3 months
Travel required for business setup? No No No No No No
Recommended paid up share capital? US$50,000 US$50,000 US$50,000 N/A US$100 US$50,000
Can secure trade finance? Yes Yes Yes Yes Yes Yes
Can bid for Government contracts? Yes Yes Yes Yes Yes Yes
Corporate bank account location? Citibank Vietnam Vietinbank HSBC Vietnam SCB Vietnam Citibank Vietnam Techcombank
Limited liability entity? Yes Yes Yes No Yes Yes
Average total engagement costs? USD37,050 US$25,745 US$22,275 US$20,200 US$13,860 US$19,740
Average total engagement period? 8 months 6 months 5 months 4 months 6 months 5 months

See full table

Accounting and tax considerations Fast solution LLC Foreign-owned company Free zone LLC Representative office Local company Joint venture
Corporate tax rate on annual net profits? 20% 20% 0-20% 0% 20% 20%
Legally tax exempt entity No No Yes Yes No No
VAT payable on sales to local customers? 10% 10% 10% N/A 10% 10%
Monthly VAT reporting to the Government? Yes Yes Yes No Yes Yes
Must file an annual tax return? Yes Yes Yes Yes Yes Yes
Must appoint an auditor? Yes Yes Yes No No Yes
Access to double taxation treaties? Yes Yes Yes No No No
Company registration Fast solution LLC Foreign-owned company Free zone LLC Representative office Local company Joint venture
Minimum number of shareholders/partners? 1 1 1 1 1 2
Resident director/partner/manager required? Yes Yes Yes Yes Yes Yes
Maximum shareholding for foreigners? 100% 100% 100% 100%s 0% 99%
Minimum number of directors/managers? 1 1 1 1 1 1
Shelf companies available? Yes Yes No No No No
Time to incorporate a new entity? 2 weeks 2 months 2 months 2 months 2 weeks 2 months
Can easily convert to a PLC? Yes Yes Yes No Yes Yes
Can have preference shareholders? Yes Yes No Yes Yes Yes
Business considerations Fast solution LLC Foreign-owned company Free zone LLC Representative office Local company Joint venture
Can invoice customers in your company name? Yes Yes Yes No Yes Yes
Restrictions on nature of business activities No Yes Yes Yes No No
Good entity for trademark registration? Yes Yes No No Yes Yes
Can secure an import and export license? Yes Yes Yes No Yes Yes

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$190
Average monthly US$ 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? Yes Yes Yes Yes Yes Yes
Public register of company Yes Yes Yes Yes Yes Yes
You need a local resident as bank signatory? No No No No No No
Withholding tax on payments to individual shareholders? 5% 5% 5% 5% 5% 5%
Must file annual financial statements? Yes Yes Yes Yes Yes Yes
Withholding tax on payments to parent company? 0% 0% 0% 0% 0% 0%
Dividends received are legally tax exempt? Yes Yes Yes Yes Yes Yes
Security deposit to be kept with Government? No No No No No No
Must sign an office lease agreement? Yes Yes Yes Yes Yes Yes
Shareholders and directors documents to be attested? Yes Yes Yes Yes Yes Yes
Foreign director needs a tax number? No No No No No No
Foreign director needs a residence visa? No No No No No No
Shareholders and directors documents to be translated? Yes Yes Yes Yes Yes Yes
The entity will likely be regulated by? MPI MPI MPI MPI MPI MPI
Sponsorship by a local citizen required? No No No No No No
Company can hire local staff? Yes Yes Yes Yes Yes Yes
Maximum number of staff allowed? No limit No limit No limit No limit No limit No limit
Expatriate to local staff ratio? None None None None None None
Company can rent local office space? Yes Yes Yes Yes Yes Yes

Vietnam business registration summary

  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 Group PLC;
  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.

Frequently asked questions

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Contact us

For additional information on our company registration services in Vietnam, please contact our in-house country expert, Ms. Lee Wen Bin, directly:
Consultant at HC - Wen Bin
  • Ms. Lee Wen Bin
  • Client Engagements Department, Deputy Director
  • Contact me!