SET UP A COMPANY IN VIETNAM: HOW TO ESTABLISH A BUSINESS ORGANIZATION?

Vietnam is an active and potential market for foreign investors to conduct business activities. Setting up a company in Vietnam is always a big concern for new investors. Doanh Tri Law Firm with many years of experience in business and investment law fields is always willing to provide customers with the most valuable advice to set up a company, establish a business organization, factory, and logistics.

According to the Vietnamese Law on enterprise, Investors must comply with the following conditions to establish a business organization:

I. Conditions for investors to establish a business organization:

- Owning an investment project.

- Foreign investors may own a definite amount of charter capital invested in business organizations, except for the following cases:

+ listed companies, public companies, securities-trading organizations, and securities investment funds;

+ state-owned companies that have been equitized or converted.

- The form of investment, operating scope, Vietnamese partners, and other aspects are conformable with the international agreements to which the Socialist Republic of Vietnam is a signatory.

The investment process in Vietnam requires appropriate actions that comply with Vietnamese law and conditions. Therefore, Investors should cooperate with a professional law firm like DOANH TRI LAW FIRM to receive the best assistance. DOANH TRI LAW FIRM provides the customer with the regulations about order and procedures of establishing a business organization in Vietnam as follow:

II. Order and procedures to establish a business organization in Vietnam

- Step 1: The investor determines the appropriate location to set up a company depending on the scale, nature, and characteristics of production activities.

There are 3 options for Customer:

(1) Rent facilities - factories have been built from infrastructure leasing companies licensed in Vietnam. This option is suitable for investors wishing to rent land less than 8 hectares to build the factory.

(2) Rent land in industrial zones, export processing zones, or high-tech zones. This option is suitable for investors who need to lease land with a lease term of 40-50 years and a land lease area of ​​over 8 hectares or more. In case the investor wants to enjoy investment incentives for export processing enterprises, the factory location must be located in an industrial park or export processing zone.

3) Rent land directly from the State. This option is suitable for investors who have plans to lease land for 40-50 years or more and have large land lease areas. The drawback of this plan is that Customers must spend a lot of time and costs to get approval on land use plan as well as ground clearance plans (if any)

- Step 2: The investor applies for an Investment Registration Certificate

+ For investment projects subject to an investment policy decision, the registry office shall issue the Certificate of investment registration to the investor within 05 working days from the receipt of the decision on investment policies.

+ For investment projects not subject to an investment policy decision, investors shall carry out the procedures for grant of investment registration certificates according to the following provisions:

• The investor shall submit the documents mentioned to the registry office;

• Within 15 days from the receipt of sufficient documents, the registry office shall issue the Certificate of investment registration. In case of rejection, the investor must be notified in writing and provided with an explanation.

- Step 3: After being granted the investment registration certificate, the investor shall carry out the procedures to establish a business organization to implement the investment project and business activities, including the following steps:

(1) Submit an application for an enterprise registration certificate.

(2) Announce the business registration content

(3) Carve and Notify the seal sample to the business registration office

(4) Notice of application of tax calculation methods

(5) Open an enterprise's bank account

(6) Registering digital signatures for electronic tax payment

(7) Print and order receipt printing

If you want to set up a factory in Vietnam, please contact directly with Doanh Tri Law in the following forms:

Hotline: 0911.233.955 

Email: [email protected]

Service package to support establish a business organization in Vietnam includes:

- Supporting to locate companies and factories in Vietnam;

- Legal advice to customers on issues related to production activities of the Enterprise

- Drafting documents and documents to establish a company or factory in Vietnam;

- Authorized representative of the customer submits and tracks the application;

- In addition, we also provide customers with the following established support activities:

• Consultancy for sub-licenses (for industries that require sub-licenses);

• Providing regular consultancy to the company during its operations;

• Other consulting agreements with customers.