Is it easy to establish branch office registration Vietnam?
Establishing a company in Vietnam is an important and potential step for overseas Vietnamese who want to expand their business or return to invest in their homeland. With a rapidly growing economy and an increasingly improved investment environment, Vietnam is becoming an attractive destination for businessmen from all over the world, including the overseas Vietnamese community. However, for this process to go smoothly, overseas Vietnamese need to have a firm grasp of legal regulations, choose the appropriate form of company incorporation Vietnam, and carefully prepare the necessary documents and papers. Let’s find out with us the process and procedures for overseas Vietnamese to establish a foreign investment Vietnam
1. Why should overseas Vietnamese establish a company in Vietnam?
With the trend of integration and development, Vietnam is gradually becoming one of the countries with the fastest growing economy in Southeast Asia, with a stable GDP growth rate. Vietnam is a country with a young population, an abundant labor force that is increasingly improving in qualifications, creating favorable conditions for businesses in finding human resources.
At the same time, the Vietnamese Government has also issued many support and incentive policies to encourage overseas Vietnamese to return home to invest, including: support for infrastructure development, human resource training, tax incentives, money incentives, land use tax… Moreover, the legal environment in Vietnam has been and is increasingly improving to create favorable conditions for businesses, especially foreign-invested enterprises. Those are the reasons that attract overseas Vietnamese to invest in establishing companies in Vietnam.
Can overseas Vietnamese set up virtual offices in Vietnam?
2. Conditions for overseas Vietnamese to establish companies in Vietnam
2.1. For overseas Vietnamese who are Vietnamese citizens residing abroad
- Conditions on the subject: have documents proving Vietnamese nationality such as birth certificate; Vietnamese passport or certificate of Vietnamese nationality, have full civil act capacity according to the provisions of Vietnamese law, not falling into the case of prohibition on establishing an enterprise according to the provisions of Clause 2, Article 17, Law on Enterprises 2020.
- Conditions on business lines: only allowed to do business in industries and trades that are not prohibited from investment and business. In case overseas Vietnamese do business in industries and trades with conditions according to the provisions of Article 7, Law on Investment 2020, they must meet the necessary conditions for reasons of national defense, security, order, social safety, social ethics, and public health.
- Conditions on financial capacity: Overseas Vietnamese must have sufficient financial capacity to meet the capital conditions according to the provisions of law when establishing an enterprise in Vietnam.
2.2. For overseas Vietnamese who are of Vietnamese origin residing abroad
- Conditions on the subject: have civil act capacity according to the regulations of the host country and Vietnamese law; have a certificate of Vietnamese origin.
- Conditions on business lines: not in the prohibited business lines. Overseas Vietnamese establishing a company as a foreign investor must meet the market access conditions as for domestic investors. In case the business lines that overseas Vietnamese want to do business in are on the list of business lines that restrict market access for foreign investors, they must meet the market access conditions as prescribed in Clause 3, Article 9 of the Investment Law 2020.
- Conditions on financial capacity: Overseas Vietnamese must have sufficient financial capacity to meet the capital conditions as prescribed by Vietnamese law.
3. Notes when overseas Vietnamese establish a company in Vietnam
3.1 Choosing a suitable business line
Vietnam’s Investment Law stipulates a list of industries that restrict market access for foreign investors, including industries that have not yet been marketed and industries with conditional market access. Therefore, overseas Vietnamese, as people of Vietnamese origin living and settling abroad, when investing in establishing legal entity registration Vietnam in Vietnam, need to carefully research to choose a suitable business line so as not to violate investment laws as well as meet all market access conditions when doing business in industries with conditional market access.
What are the forms of company establishment in Vietnam?
3.2 Choosing a company type
When overseas Vietnamese establish a company in Vietnam, choosing a company type is one of the important factors that need to be carefully considered. Depending on business goals, capital scale, and development plans, overseas Vietnamese can choose between types such as limited liability companies (LLCs), joint stock companies, or partnerships.
Each type has its own advantages and disadvantages, for example, LLCs have a flexible management mechanism and less personal financial risk, while joint stock companies are more convenient in raising capital from investors. In addition, overseas Vietnamese need to consider legal regulations related to foreign ownership of capital in each type of business licensing Vietnam to ensure compliance with the law. Choosing the right type of company will help the company operate effectively and sustainably in the business environment in Vietnam.
3.3 Prepare documents, research necessary procedures
The process of overseas Vietnamese establishing representative office Vietnam can go through many steps, and there are also many requirements for documents and related papers. In order for the company establishment process to take place easily and save time, overseas Vietnamese need to research and prepare the necessary documents in a complete manner. In addition, after the branch office registration Vietnam is established, if it wants to operate in accordance with the law, documents such as operating licenses, business licenses or sub-licenses related to each specific industry are indispensable requirements.
Therefore, overseas Vietnamese need to clearly understand the document requirements and procedural steps to save time, costs and effort. You can also contact us if you need any support services.
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