Company establishment refers to the process of legally forming a business entity that allows individuals or organizations to conduct commercial activities. In Vietnam, the business environment is favorable for both local and foreign investors, with various legal structures available. Benefits of Establishing a Company in Vietnam Setting up a company in Vietnam offers several advantages, including: Access to a growing market: Vietnam's economy is expanding, offering great business opportunities. Favorable investment policies: The government provides incentives for foreign direct investment (FDI). Cost-effective operations: Lower labor and operational costs compared to other countries. Strategic location: Vietnam is a key gateway to Southeast Asian markets. Tax benefits: Various tax incentives are available for specific industries and regions. Types of Business Entities in Vietnam When establishing a company, it is essential to choose the right structure based on your business goals. Common types include: Limited Liability Company (LLC): Ideal for small to medium-sized businesses with limited liability for owners. Joint Stock Company (JSC): Suitable for larger enterprises requiring multiple shareholders. Representative Office: A non-commercial entity for market research and liaison purposes. Branch Office: An extension of a foreign company that can engage in business activities in Vietnam. Requirements for Company Establishment in Vietnam To successfully register a business in Vietnam, investors must meet the following criteria: A minimum of one investor (individual or corporate entity). A registered business address in Vietnam. A legal representative who resides in Vietnam. Minimum charter capital (varies based on the industry, but no fixed minimum for most sectors). Steps to Establish a Company in Vietnam Step 1: Choose a Business Structure and Name Select the most appropriate entity type and ensure the company name complies with regulations. Step 2: Prepare the Required Documents Application for enterprise registration. Passport/ID of investors and legal representatives. Company charter and articles of incorporation. Office lease agreement (if applicable). Step 3: Submit the Application to the Department of Planning and Investment (DPI) Approval typically takes 7-10 working days. Step 4: Obtain the Business Registration Certificate (BRC) Once approved, the company receives its BRC, which legally allows business operations. Step 5: Register for Tax and Open a Bank Account Obtain a tax identification number (TIN) and register for VAT. Open a corporate bank account. Step 6: Complete Post-Registration Procedures Apply for necessary business licenses if applicable. Register employees for social insurance. Comply with ongoing tax filing and financial reporting obligations. Compliance and Legal Obligations Once the company is operational, businesses must adhere to Vietnamese laws, including: Corporate Income Tax (CIT): Standard rate of 20%, with incentives for certain industries. Value Added Tax (VAT): Usually 10%, but may vary based on products and services. Personal Income Tax (PIT): Progressive tax rates apply to employees' salaries. Annual Financial Reports: Companies must submit financial statements and tax declarations. Why Choose Our Services? We offer professional company establishment services in Vietnam, ensuring a seamless and efficient setup process. Our expertise includes: End-to-end support in business registration and licensing. Tax and compliance advisory services. Ongoing legal and administrative support.
