business entityIncorporation in Vietnam has become an alluring option for many international enterprises due to more and more developing economic Vietnamese market. Nevertheless, many entrepreneurs should consider carefully about which business entities are appropriate to their business industry, their invested capital, their organization structure and even their particular expectations. Exporthelp Asia will provide some important and necessary information in order to help businesses have a sound decision in choosing business entities in Vietnam

 

 

 

 

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TABLE OF COMPARISON BETWEEN VIETNAM BUSINESS ENTITIES

  LLC (WHOLLY FOREIGN-OWNED) – FOREIGN COMPANY LLC (PARTLY FOREIGN OWNED) – JOINT VENTURE PUBLIC LIMITED COMPANY – JOINT STOCK COMPANY BRANCH REPRESENTATIVE OFFICE
How long to incorporate the company? 12 weeks 20 weeks 16 weeks 24 weeks 12 weeks
How long to open company bank account? 4 weeks 4 weeks 4 weeks 4 weeks 4 weeks
How long to open company capital account? 8 weeks 8 weeks 8 weeks 8 weeks
Legal liability Limited Limited Limited Unlimited Unlimited
Will the company be able to conduct business in sectors restricted to foreign investment? No Yes No No No
Does the company need to obtain a business license? Yes Yes Yes Yes No
Does the company need to obtain a foreign investment certificate (FIC)? 3 weeks 12 weeks 4 weeks 12 weeks
Minimum shareholder 1 2 3 1 1
Wholly foreign owned Yes No Yes Yes Yes
Maximum foreign-ownership? 100% 99% 100% 100% 100%
Minimum share capital? $10,000 $50,000 $20,000 $1 $1
How many months after incorporation to transfer share capital? 6 months 6 months 6 months
Foreigners need to travel to Vietnam? No No No No No
Resident director required? Yes Yes Yes Yes Yes
Resident director must have signatory power for the company? Yes Yes Yes Yes Yes
Is the residency requirement currently enforced by the authorities? No No No No No

Minimum director allowed?

1 1 1 1 1
Corporate shareholder allowed? Yes Yes Yes Yes Yes
Individual shareholders allowed? Yes Yes Yes No No
Vietnam corporate tax rate? 20% 20% 20% 20% 0%
Annual financial statements required? Yes Yes Yes Yes No
Statutory audit required? Yes Yes Yes Yes No
Allowed to issue sales invoices in Vietnam? Yes Yes Yes Yes No
Need to obtain VAT invoices from the government? Yes Yes Yes Yes
Allowed to sign contracts with Vietnam entities? Yes Yes Yes Yes No
Allowed to import and export goods? Yes Yes Yes Yes No
Can rent an office in Vietnam? Yes Yes Yes Yes Yes
Can own equity in other Vietnam companies? Yes Yes Yes Yes No

 

CONTACT US

EXPORTHELP ASIA

Viet Nam office: 151 Dao Duy Anh st., Phu Nhuan dist., Ho Chi Minh city, Viet Nam

Singapore office: 316 Tanglin Road, Block 316, Singapore

Hot line: (+84) 938.53.15.88/ (+65) 83551210

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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INCORPORATION IN VIETNAM

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  • Viet Nam office: 151 Dao Duy Anh st., Phu Nhuan dist., Ho Chi Minh City
  • Singapore office: 316 Tanglin Road, Block 316, Singapore
  • Hot line: (+84) 938.53.15.88/ (+65) 83551210