October 25, 2020
Visa tips

[Update 2020] Procedures For Opening One-Member Limited Company in Vietnam

Vietnam’s fast-growing economy is an ideal environment for setting up new businesses. The country has an increasing number of middle-income groups and a growing number of young population. Entrepreneurs from around the world would take advantage of this opportunity by setting up a new business in the country. Thankfully, starting a business in Vietnam is easy, especially if it’s a One-Member Limited Company, also known as the Limited Liability Company.

Whether you own a small or medium-sized company, starting a limited liability company in Vietnam is a great idea. But before you fly to Vietnam to open your company, it’s important that you come prepared. In this article, you’ll learn more about the process of starting a limited liability company in Vietnam, and the latest update on the procedures.

What is a Limited Liability Company (LLC)?

The One-Member Limited Company is also known as the Limited Liability Company or LLC. It’s a business structure that protects your personal assets in case your company will be sued as a result of debts and liabilities.

In most cases, starting a limited liability company is the easiest way to establish a business in Vietnam. This is also ideal for small business owners as it seeks to protect their personal assets in case of debt. Basically, the shareholder’s liability in this type of company will only be limited to their shares and not their personal assets.

Why Start an LLC in Vietnam?

So why should you start an LCC in Vietnam? Here are some good reasons:

  • Low operational costs – Vietnam has lots of young workforce with low wages, compared to some other countries in the world. This also explains why most Vietnamese goods are cheaper.
  • Easy market penetration – the quality of products manufactured in Vietnam is getting better and better, but the country still lacks several products and services. To meet this demand, the government has made it easier for foreign investors to set up a business and penetrate the market.

Latest Update on Establishing an LLC in Vietnam

Before you set up a Limited Liability Company in Vietnam, it’s important that you know the process. The government updates the rules and regulations on a regular basis, so you need to keep yourself updated.

As per the latest decree, the procedures for establishing a one-member limited liability company have been changed. Individuals and organizations must be updated with this procedure. Below are the required documents:

👉 1. Application form for the registration of the enterprise in accordance with the form provided in appendix I-2 to Decree 122/2020/ND-CP.

👉 2. Company’s draft charter, which should include the full name and signature of the owner or any legal representative.

👉 3. A valid copy of one of the personal identification papers that were stated in article 10 of the decree, for the individual owner or authorized representative. If the company will be managed according to the model of a company president, then the director or general director and controller of the organization. But if the company is managed according to the model of the Members’ Council, then it will be the general director and controller. The dossier must include a list of authorized representatives as well as a valid copy of one of the authenticated papers.

👉 4. Valid copies of the following documents must also be submitted:

  • Business registration or establishment decision certificate. In the absence of this document, other equivalent documents from the company owner can be submitted.
  • Certificate of investment registration if the enterprise was established by any foreign-invested economic organization or foreign investor in compliance with Vietnam’s Investment Law.

👉 5. Commitment to accomplish social and environmental goals if it is a social enterprise.

👉 6. Decision of the competent authority that allows the transformation of social protection institution, social or charity fund into a social enterprise. This applies to the conversion of social protection establishments and social funds or charity into a social enterprise.

👉 7. Valid copy or written approval from the State Bank of Vietnam if the company that’s being established is a credit institution.

👉 8. Original copy of the business household registration certificate as well as a valid copy of the tax registration certificate if the registration of the enterprise establishment is a conversion from business households.

👉 9. Authorization document from the owner of the authorized person if the owner of the company is an organization.

👉 10. If the owner isn’t a legal investor of the enterprise that directly submits the dossier, the authorized person should submit a valid copy of one of the following identification papers:

  • Vietnamese citizens – valid citizen’s identity card or Vietnamese ID card. A passport can also be used.
  • Foreigners – foreign passports or valid papers in lieu of foreign passports.

These documents must be enclosed with an authorization letter, as required by law for individuals who will carry out the process of registering the business. It is not necessary to notarize or authenticate these documents.


For further inquiries, please feel free to contact us : info@vietnamimmigration.org



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