Thinking about company incorporation in Vietnam? You are on the right path. Many countries have benefited from Vietnam’s recent economic development.
Over the years, Vietnam has been rapidly developing and positioning itself as one of the ASEAN countries’ key partners during its incredible economic transformation. It is ranked the third-largest economy in Southeast Asia with a growth rate of close to 6.5%.
The country’s economy is set to be greatly enhanced due to the increasing favorable government’s policy and surging foreign investment, ready to overtake the economy in many Southeast Asian countries in the near future.
The supporting government policies and trade agreements have eased the process of doing business in Vietnam for countless countries by opening up unprecedented opportunities and access across a vast spectrum of sectors and industries.
Positive government is not the only thing that boosts the dynamic economy. It is well-known that Vietnam is a great investment destination thanks to its burgeoning population, especially the young workforce and middle-class group.
With over 95 million people and expected to increase to 105 million by 2030, Vietnam’s particular sectors such as manufacturing are destined to flourish significantly.
Furthermore, the strategic location of Vietnam in the heart of Southeast Asia and progressive infrastructure have made it an ideal investment hub for foreign corporations and entrepreneurs. Its proximity to China and low labour costs are the reasons that many business owners have moved their companies from China to Vietnam.
The transportation is made easier for all import and export trades when the Vietnamese have utilised a huge sum of the foreign investment capital in international airports, highways, new ports, among others.
There are several key requirements you should comply with for starting your Vietnam company incorporation:
Allowed Foreign Direct Investment (FDI)
There are two available legal entities for foreigners to choose from: a Limited Liability Company (LLC) and a Joint-Stock Company (JSC). LLC requires only one or two shareholders and JSC requires at least three shareholders.
There isn’t a minimum capital requirement for foreigners for their Vietnam company incorporation. Oftentimes, it is possible to start a service company with only US$3,000 but the common amount is US$10,000.
Registered Business Address
A legal, registered business address is compulsory for every company incorporated in Vietnam.
For startups or business owners on a budget, or who are not ready for a long-term lease commitment, a virtual office in Vietnam will be a great solution to have a legit business address. You have the flexibility to change the business address later on.
A resident director is required for the Vietnam company incorporation. He or she must maintain a residential address in Vietnam once the company is incorporated.
A foreign director who is not the founder of the company must have a work permit to be able to lease a property. Therefore, a nominee director is often preferred while a foreigner does not have Vietnam’s residential address.
A foreigner or foreign company wanting to start a business in Vietnam can choose can opt for operations such as a registered company, a representative office, a branch, a nominee arrangement, or even a virtual office.
However, it is crucial to have full knowledge of your options and their requirements before deciding how you can establish your business presence in Vietnam. This is because the long-term growth of your company in Vietnam can be hindered by making the wrong choice.
Cekindo is your trusted business consulting firm that can help you make informed decisions about how and what best to incorporate a company in Vietnam.
Our expert compliance officers and business consultants can also provide realistic and effective solutions with maximum flexibility. You can now avoid piles of paperwork with Cekindo’s professional assistance for your Vietnam company incorporation.
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