Company formation in Vietnam- How to proceed?

Company Formation in Vietnam?

Foreign investors may put resources into the type of 100 % funding to set up company  in Vietnam, being joint stock company, limited liability company, partnership company. In recent years, the openness policy of the Vietnamese government has made company formation in Vietnam easier.

To receive investment registration certificates, first-time foreign investors in Vietnam must have investment projects and complete investment registration or examination procedures at state investment agencies.

Business registration certificates shall concurrently be investment certificates. Company with 100% foreign capital has established and operated from the date of issuance of the business registration certificates

Vietnam company formation dossiers

-Registration/Request for issuance of Investment Certificate;

-A report on financial capability of the investor;

-Draft of the company’s charter;

-List of members of company;

-Copy of the people’s identity card, passport or other lawful personal certification, for individual members;

-Copy of the business registration certificate or establishment decision, or other equivalent document, for member organizations;

-Copies of the people’s identity card, passport, the authorization document, or other lawful personal certification, for authorized representatives.

-Within three months of the date of submission of the business registration dossier, copies of the foreign member organizations' business registration certificates must be authenticated by the organizations' registered agencies;

-Written authorization of the investor in case investor is organization and valid copy of  the legitimate individual affirmation of the approved delegate. Documents in foreign languages must be converted into Vietnamese, authenticated and legalized;

-The Business Cooperation Contract (BCC) or the joint-venture contract

-Other documents required by Vietnam law

Vietnam company formation would take anywhere from 30 days. If the investment area is conditional or the State government must examine the investment project, additional time may be required.

Special licenses, minimum capital or other conditions might be required in certain investment projects.

How a law firm in Vietnam would help with company formation in Vietnam?

While the process of company formation in Vietnam is straight forward more often than not, there are numerous circumstances which it would be better that the client draws in a law firm in Vietnam to help with record planning, legitimate interpretation, legally approbation, and verification of utilization dossiers. 

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How an International Organization Could Set up Branch Office in Vietnam?

How an International Organization Could Set up Branch Office in Vietnam?

An unfamiliar business substance or an unfamiliar dealer is permitted to set up a branch office in Vietnam to direct business exercises.

A branch in Vietnam is distinct from a representative office in that it is granted the authority to carry out business activities and generate revenue. While a foreign-owned company established in Vietnam exists independently, a branch is dependent on the foreign business entity that established the branch. The establishment of a branch office in Vietnam will be approved by the Vietnam Department of Industry and Trade, and the Vietnam Ministry of Planning and Investment will be the state agency in charge of coordinating company formation in Vietnam.

In particular, the term "Branch" refers to a subsidiary unit of a foreign business entity that has been established in accordance with Vietnamese law to be able to enter into contracts and engage in the purchase and sale of goods and other commercial activities in accordance with its license for establishment granted in accordance with Vietnamese law and any international treaty to which the Socialist Republic of Vietnam belongs.

The establishment license must be applied for and obtained by the Branch; and have a seal with the branch's name on it.

1. Rights of the Branch in Vietnam

-To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.

-To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.

-To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.

-To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.

-To remit profits abroad in accordance with the law of Vietnam.

-To have a seal bearing the name of the branch in accordance with the law of Vietnam.

-To conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

2. Requested Conditions to Set Up a Branch Office in Vietnam

An unfamiliar organization which has viability business exercises will be permitted to open branch office in Vietnam in the event that this organization has genuine interest to open the market in Vietnam and meet a few circumstances as underneath:

-Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;

-Having been operating for at least five years after its lawful establishment or business registration.

3. Issuance the Certificate of Branch:

The Department of Industry and Trade Department will carry out the issuance of the Certificate of Branch once the foreign company satisfies all Vietnam legal requirements.

The responsible period will be inside 20 working-days after the date of presenting the full substantial records as mentioned. 

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