Foreigners opening businesses in Vietnam or investing in a business in Vietnam have to go through the difficulties of understanding the laws and regulations directed by the Department of Planning and Investment. Between the many questions you may have as an investor, the reliable (and easy to process) sources of information are hard to find.
IzyViet is here to facilitate the procedures with the entrepreneurs who invest or open businesses in Vietnam so that they can easily understand the requirements and how to be able to open their activities. We provide services such as company setup but also modification of status or addresses for existing companies.
IzyViet helps the foreigner to proceed in three steps:
- Send us an email with the details of your project; location in Vietnam, investment capital, scope of activities, partners in the project, your expertise, etc.
- Our Corporate Advisors will come up with a quotation and registration plan: it’s the translation of your project into Vietnamese legal terms and clear info of your options in order to setup your company in Vietnam; documents to provide, processing time, cost and steps.
- After everything is clear for you and agreement, we will start the process of your business incorporation.
Going through the process of company setup in Vietnam can be hardeous and cost more money than you initially intended… if you chose the wrong partners for such type of project.
And IzyViet offers support for entrepreneurs and investors to make the right decisions from the beginning and save their personal time to focus on growing their business rather than struggling with the administrative procedures.
When we provide the company setup, IzyViet open the doors to a long term partnership with the foreign investor with the abilities to provide additional services such as VAT & Tax Reports, Personal Income Tax Declarations and Refunds, Coporate Income Tax Declarations, Annual financial reports, Quarterly reports, etc.
All types of services that a business and its owners must deal with after the opening. This is a great opportunity for doing things right from the beginning and chosing IzyViet as your partner for such type of project.
WHY SET UP A COMPANY IN VIETNAM?
Reliability: When registering a Company in Vietnam its investors (or company owners) and third parties have to present a clear picture and understanding of the business to the government. Registering a company in Vietnam allows third parties to examine the company’s status regarding various matter for example, its corporate profile, financial state, shareholders list, directors and more. As a result, parties such as partners of a company, its investors, banks or private money lenders find the company reliable.
Security: A company is a legal entity which is established for a lengthy period. Normally, the company operates until the owners are unable to operate it and dissolve it. All the company’s day to day management is normally performed by its Directors, which are assigned by the shareholders. Some advantages of forming a company are protect your brand/company name, your personal liability for financial losses and allow you to get a proper visa for live in Vietnam.
WHICH LEGAL STRUCTURE IS THE MOST CONVENIENT?
Setting up a company means creating a separate legal entity from yourself, even if you’re the founder. Any profits will belong to the company (not you) and in order to receive income you will need to withdraw money as salary payments, dividends or a loan.
Choosing how to structure a new business is a big decision and forming a Limited liability company (LLC) or Joint-stock company (JSC) are two of the options available, they are the most common types of legal entities in Vietnam.
A Limited liability company can have 1 to 50 members, also known as founders or owners. Besides that, a Joint-stock company must have a minimum of 3 shareholders (there is no limit to the number).
WHAT IS THE MINIMUM CAPITAL REQUIREMENT IN VIETNAM FOR A SMALL BUSINESS?
The investment amount depends on the business plan and is subject to the approval of the provincial Department of Planning and Investment. Most business lines do not require a minimum capital requirement; however, we recommend you to choose a reasonable and realistic capital.
In some business areas like real estate, banking and finance, a minimum capital is required. In general, for non-conditional investment area, the provincial Department of Planning and Investment which in charge to evaluate investment plan could reject the investment project which are not feasible. Bank statement in foreign banks could be used to prove sufficient fund of investment capital.
There is no legal requirement to set up a business bank account for your limited company, however, it’s much easier to trade and manage your business if you have one. A director can, for example, withdraw salary, expenses or dividends from the company.
WHAT ARE MANDATORY REPORTS SUBMISSIONS REQUIREMENT IN VIETNAM?
There are a number of legally-mandated requirements with which Foreign Owned Company in Vietnam must comply, failure of which will impact the ability of the company to continue operating in Vietnam.
These procedures and requirements may be different from what you are accustomed to in your home countries. Investors should therefore be sure to familiarize themselves with these requirements as well as to seek professional advice.
Most of requirements are:
- Accounting and tax reporting (monthly, quarterly and annually), including accounting books,corporate income tax (CIT), value-added tax (VAT), and personal income tax (PIT).
- Payment of the annual business license tax
- Audited annual report made through an independent Vietnamese auditing company at the end of each fiscal year (your company financial statements will be reviewed). The financial year in Vietnam is from January to December and the deadline to submit financial report is March 30th for the previous year
- Compliance with immigration and labor laws including registering local employees with social insurance, work permit application, temporary residence card to make sure that all foreign employees are legally to work in Vietnam.
For additional information on our company formation and corporate service, feel free to contact our corporate services advisor.
IzyViet is able to provide proficient services to our corporate clients, from the management of your business setup through its early stages until your business grown stage.