It might be that you had a holiday in Vietnam and was instantly smitten by this unique and very colourful culture, or perhaps you have a Vietnamese partner and would like to settle and start a business; whatever your reasons, this article offers practical advice for the foreigner who wished to register a business in Vietnam.
Seek Out Professional Advice
As with other countries, Vietnam has complex laws regarding setting up a business and only a local legal company would have the knowledge and experience to facilitate business registration. The options for registering a business in Vietnam are as follows:
- Representative Office (RO) – This is perfect for a foreign company that would like to carry out some market research in Vietnam, while this non-trading entity can be 100% owned by the parent company. No partners or shareholders are required and with many top quality conference & meeting rooms for rent in Saigon, you can easily arrange for important events, as local 5-star hotels have all the facilities you would expect and at affordable prices too. You could hire a registered business address and hire a leading call centre to handle all incoming calls and have all your mail forwarded to your address.
- Limited Liability Company (LLC) – This is perhaps the most popular form of business a foreigner can create, which can be a joint venture or 100% foreign owned, whichever you prefer. This also enables you to have foreign employees with long-term business visas and for more information, search with Google for a leading Vietnamese legal company that offers business registration services.
- Joint Stock Company (JSC) – If you would like to set up a corporate business structure, the JSC option would likely be the best solution. There must be a minimum of 3 shareholders and this trading entity must have an official Board of Directors, which is something the local law firm might be able to assist with.
A foreign owned business may enter certain sectors, while others are protected, reserved for domestic companies and the best way forward is to consult with a local law firm, as they can inform and advise you accordingly. If you are looking to give your home some real kerb appeal, here is an informative article on the topic.
Typical Processing Times
For a new RO business application, you can expect to wait 4-6 weeks for everything to be finished, while an LLC application is likely to take 6-8 weeks, as with the third option, the JSC. You will be prompted by the law firm to open bank accounts and provide specific items of paperwork that will be added to the application.
There are many aspects to consider when registering a foreign business in Vietnam, especially taxation and the law company offer the best advice as they have your best interests at heart. A Google search is all it takes to source such a provider and with their expertise, you will make all the right choices.
Finally, it is very important to check with your local Vietnam Embassy regarding Covid-19 entry requirements, prior to making any travel plans. Most countries in Soth East Asia have nod had that many Covid infections, which could be due to the theory that the virus does not do well in high heat and humidity.