How to Open a company in Vietnam Complete Guide 

• Open a company in Vietnam to profit from its booming economy and benign environment for investment. Since 1986, when it implemented the “doi moi” reforms, Vietnam evolved into a competitive, industrialized market with booming areas such as manufacturing and technologies. Its strategic location and young workforce and developing infrastructures make it an optimal venue for business operations.  

• Companies wishing to register company in Vietnam would need to select a suitable business structure, register business names, and file incorporation documents for companies with the Department of Planning and Investment. After undertaking such procedures and acquiring such permissions, businesses are at liberty to operate and even reap the benefits of a lively economic climate. 

Types of business entities available to open a company in Vietnam 

Limited Liability Company (LLC): 

• It is one of the most widely used forms of business in Vietnam, mainly by small and medium enterprises. LLCs may take either single-member form LLC1 or multi-member form LLC2. One major benefit of an LLC is that the liability of its members extends only up to their capital contribution. Hence, their personal assets are protected 

Joint Stock Company (JSC):  

• This form is suited to larger businesses looking to raise capital from multiple investors. The shareholders of a JSC must be at least three in number and allows the issue of shares to attract more investors. On the other hand, there are more regulatory requirements for this form and the formation costs are higher compared to other forms. 

Partnership: 

• A partnership is an association of two or more persons or entities with a specified business purpose. In this entity, general partners are personally liable for the debts of the firm, and they manage it. Limited partners, on the other hand, contribute capital, but they do not participate in its management. This type of entity is less common as high personal risk is involved for the general partners. 

Sole proprietorship: 

• This is probably the most straightforward business type, owned and controlled by one person, and accountable for all the debts and obligations made. Sole proprietorships are relatively simple to establish, but there are no liability protections that limit the potential drawback. 

Private enterprise:  

• Like sole proprietorships, private enterprises are owned by persons but can have more than one owner. They are usually used for small-scale businesses and have fewer requirements in terms of regulations as compared to other forms. 

Requirements to open a company in Vietnam 

Requirements to open a company in Vietnam may vary depending on the business structure one chooses. Thus, if you have chosen LLC, the requirements may include but are not limited to: 

• There are no minimum capital requirements. The authorities expect investors to commit a reasonable amount of charter capital based on the business and this capital must be deposited within 90 days of obtaining the Business Registration Certificate (BRC). 

• An LLC in Vietnam must have at least two members and can have up to 50 members. Members can be individuals or legal entities, and foreign investors. 

• At least one director of the LLC must be a resident in Vietnam. This director can be a Vietnamese citizen or a foreign national who holds a valid work permit. All founding members must have legal status, meaning they should be recognized individuals or entities under Vietnamese law. To comply with this Tetra Consultants provide nominee director and shareholder services. 

• The LLC must appoint a legal representative, who can be either a Vietnamese citizen or a foreign national residing in Vietnam. This individual is responsible for signing documents and representing the company legally. If the legal representative is a foreign national who is not a shareholder, they will need to obtain a work permit. 

• A registered office address is required in Vietnam in order to open a company in Vietnam. 

• The company must also obtain an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC) from the Ministry of Planning and Investment. 

Conclusion 

• If you open a company in Vietnam is one of the greatest opportunities for growth and success in one of the most dynamic economies in Southeast Asia. Tetra Consultants can be your one-stop shop, ensuring a smooth and hassle-free process. We offer a full range of business services, from offshore company incorporation to corporate bank account opening, tax registration, and ongoing compliance management.  

• Our team of experts ensures full transparency, efficiency, and adherence to local regulations at every step. By leveraging our expertise, you can focus on growing your business while we handle the complexities of the setup and compliance process. Let Tetra Consultants guide you in establishing a strong presence in Vietnam’s vibrant and evolving market. 

• Contact us to know more about open a company in Vietnam and our team will revert back in 24 hours.