Company Formation in Vietnam: Costs, Process & Requirements

Set Up Company In Vietnam: A Strategic Guide for Investors

Establishing a business in one of Southeast Asia’s fastest-growing economies is a brilliant move, but it requires navigating a specific regulatory framework. If you are looking to Set Up Company In Vietnam, here is a structured breakdown of everything you need to know.

1. Common Business Structures

Before diving into the paperwork, you must choose the entity that fits your scale:

1. 100% Foreign-Owned Enterprise: The most popular choice, allowing full control for international investors. Usually structured as a Limited Liability Company (LLC).
2. Joint Venture (JV): A partnership between a foreign investor and at least one Vietnamese partner. Required for certain restricted sectors (e.g., advertising, tourism).
3. Joint Stock Company (JSC): Suitable for large-scale businesses planning to list on the stock exchange. Requires at least 3 shareholders.
4. Representative Office: Ideal for market research and promotion without engaging in direct profit-generating activities.

2. The Step-by-Step Incorporation Process

The timeline for setting up a company generally spans 30 to 45 days.

1. Check Name & Address: Ensure your company name is unique and you have a valid commercial lease agreement for your headquarters.
2. Obtain the IRC (Investment Registration Certificate): Required for all projects with foreign capital. The government reviews your investment scale and intent.
3. Obtain the ERC (Enterprise Registration Certificate): Once the IRC is granted, the ERC creates your legal entity and provides your Business ID (Tax ID).
4. Post-Registration Tasks: * Create the official Company Seal.
5. Open a Capital Bank Account (to transfer the investment capital) and a Trading Account.
6. Submit the initial tax declaration and pay the annual Business License Tax.

3. Essential Requirements at a Glance

4. Key Benefits of the Vietnamese Market

1. Strategic Location: Proximity to China and major shipping routes in the East Sea.
2. Free Trade Agreements (FTAs): Benefits from EVFTA, CPTPP, and RCEP, offering reduced tariffs for exporters.
3. Tax Incentives: Significant tax breaks (e.g., 0% or 10% CIT for a period) for projects in high-tech, renewable energy, or specific economic zones.

🛡️ Important Compliance Note

All foreign documents (passports, bank statements, certificates) must be notarized and legalized by the Vietnamese Embassy or Consulate in your home country before they can be used for your application in Vietnam.

LHD LAW FIRM HO CHI MINH

1. HP Tower, 60 (Floor 7) Nguyen Van Thu Street, Tan Dinh Ward, HCM City, Viet Nam
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LHD LAW FIRM DA NANG

1. No. 71 Ly Tu Trong Street, Thach Thang Ward, Da Nang City, Vietnam
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