Doing business in Vietnam presents plenty of opportunities. Vietnam has one of the fastest-growing economies in the world. In 2019, the country has surpassed the economic growth rate of some other Asian nations including big countries like India and China. So if you’re an entrepreneur wanting to open a company in Vietnam, then you’re definitely making the right choice.
Opening a company in Vietnam is a straightforward process. However, foreign-owned businesses must follow certain guidelines so as not to get into trouble with the Vietnam government. So before you set up your business, you must first understand the requirements and process involved in opening a foreign-owned company in Vietnam.
Before you fly to Vietnam to open a business, you must first understand the rules involved. So here are some of the most important things you need to know when opening a company in Vietnam:
Vietnam will allow a hundred percent ownership of companies set up by foreign entities. These include business in the fields of manufacturing, IT, trading, and education. But in some industries, foreign ownership is restricted. Examples of these industries are logistics, advertising, and tourism. So if your business belongs to any of these industries, you must first partner with a Vietnamese local.
Vietnam does not impose any minimum amount of capital for setting up businesses in the country. However, the amount should be enough to cover all the expenses involved until such time that the company will become sustainable. Most foreign businesses would set a capital of around USD 10,000. But small companies should be able to open a business at a capital of around USD 3,000.
But there are some businesses that have minimum capital requirements and these include the following:
When setting up your company, you should have a business address for your company. Service businesses like consulting firms can use a virtual address. But for most businesses including restaurants, manufacturing, and retail, an actual physical address is needed. Vietnam’s Dept. of Planning and Investment may pay a visit to the address you have provided during the process of incorporation. You will be required to submit documents that will serve as proof of your physical address.
All companies in Vietnam are required to have a resident director. The director does not need to be a resident of Vietnam during the time of incorporation. However, he or she will be required to provide a residential address. Take note that if the director is also the founder of the company, a work permit is no longer required but he or she must request a work permit exemption. But if the director is not a founder, then a work permit is necessary.
The most important step in opening a business in Vietnam is to register the company. Here are the steps involved:
Opening a company in Vietnam is a straightforward process. But as you can see, there are lots of requirements involved and the process can get confusing for a foreign entrepreneur. In this case, consider hiring a local agency that can help set up your business for you. They are expert in the field and will make the process easier and smoother for you. They can also offer advice and consultation for the overall success of your business operation.