NOTES FOR FOREIGNERS ESTABLISHING A COMPANY IN VIETNAM

Things to keep in mind when foreigners establish a company in Vietnam

Foreigners establishing a company in Vietnam need to pay attention to the following issues:

• When foreign entrepreneurs open a company in Vietnam, they can open a company with 100% foreign capital, a company with 1% - 99% foreign capital, or a joint venture with a Vietnamese enterprise to establish a company.
• For each investment method, type of company, industry, and business field, foreign entrepreneurs will need to fully prepare different procedures, documents, licenses, and records.
• There are some professions that are not allowed to do business in Vietnam, or the Vietnamese government restricts business and requires strict conditions, so foreign entrepreneurs must consider the field when opening a company.
• Foreign businessmen must comply with Vietnamese law when opening a company in Vietnam.

Conditions to be met when establishing a company for foreigners in Vietnam

For foreigners establishing a company in Vietnam, in addition to the things to note, they also need to meet the following conditions:

• Foreign entrepreneurs must be nationals of WTO countries. Be a legal citizen, have complete documents proving legal status, valid individual, certified by the consulate.
• Investors who want to open a company must prove their financial conditions and investment ability by providing documents to verify financial capacity such as financial statements, bank account balances, and savings books. , fixed assets.
• Foreign businessmen are only allowed to establish companies doing business in areas permitted by Vietnamese law.
• For professions that require business conditions, appropriate conditions must be fully met. Need to apply for full licenses such as investment registration certificate, business registration license,... then be able to establish a company in Vietnam
• Commitment that the business does not harm the culture, customs, history... of Vietnam.
• Foreign businessmen must provide information about the project location, land use documents, and valid office rental.

Procedures for establishing a company for foreigners in Vietnam

Foreigners establishing a company in Vietnam need to proceed in a specific order and prepare the following procedures:

Step 1: Prepare the company’s informations

Before opening a company, foreign entrepreneurs need to first prepare complete company information such as company name, company address, legal representative of the company, company type and charter capital.

Step 2: Register investment for foreign entrepreneurs

Foreign entrepreneurs must apply for an investment license at the investment management agency. Specific records include:

• Request for investment license.
• Proposal on projects to be invested in.
• Proposal on land use, providing sufficient documents on land use rights and valid office rental.
• Document proving the financial capacity of the foreign businessman.
• Documents proving the valid legal and personal status of the foreign investor such as passport, identity card...
• Or just authorize AZLAW to help foreign investors.

Step 3: Proceed to apply for a business registration license and establish a company

Foreigners establishing a company in Vietnam will need to complete business registration procedures, documents include:

• Application for a business registration license or company opening according to the prescribed form.
• List of members and shareholders who opened the company together.
• Specific charter of the company.
• Documents proving the personal and legal status of the investor from abroad (identity card, passport, citizen identification card, business registration certificate...).
• Investment registration certificate has just been issued.
• Or just authorize AZLAW to draft and complete the application for you.

Step 4: Announce company information and complete post-establishment procedures

After obtaining a license to establish a company, businesses need to register company information on the national electronic information portal within a maximum of 30 days to avoid administrative sanctions.

In addition, businesses need to hang company signs, engrave seals and publicize seal samples, issue invoices, create bank accounts for transactions, declare, pay taxes and register digital signatures.

Step 5: Complete the conditions and apply for a business license

If the industry that a foreign entrepreneur operates in is among the industries that require certain conditions, they must complete all the conditions and apply for a license to be able to operate.

In the case of doing business in an area that does not require any conditions, the business can go into operation immediately after establishing the business and can skip this step.

For any questions or comments, please contact:

OTIS AND PARTNERS LAW FIRM

Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi

Email: [email protected]

Hotline: 0987748111