In recent months, businesses have been exploring the concept of shifting much of their business operations to the ASEAN region – Vietnam is one of those jurisdictions that is consistently mentioned. As the country has long offered various advantages to foreign enterprises, many are now contemplating Vietnam company formation. Businesses of all industries and sizes have been able to capitalize on one of the fastest-growing economies in the ASEAN region in an effort to develop their international business operations.
The requirements surrounding Vietnam company formation are among the most relaxed in the world. A minimum of one shareholder and one director are required – there are no restrictions in relation to the nationality requirement of these positions. In addition, the position of company secretary is not required.
For incorporation purposes, a local registered office address is required if a business is expected to utilise space for their business operations, for instance a manufacturing company. However, service-based businesses may have a virtual office for registration purposes.
While there are no restrictions in regards to the minimum capital required to incorporate a company, it is recommended that the capital contribution reflect the activities of the company as the Vietnam government authorities will heavily scrutinize this aspect of your application.
Foreign-owned companies are required to submit the following:
Joint Stock Company
Multi-member Limited Liability Company
Single-limited Liability Company
The typical Vietnam company formation process takes around one to three months. This of course, is dependent on an application’s approval from the Vietnamese authorities.
There is no explicit law which states how much capital should be injected into each Vietnam company during incorporation, however, the Vietnam Department of Planning and Investment will often advise on the minimum capital requirement of your business by taking into consideration the industry your business will operate in.
To increase the chances of success for company incorporation, parties should inject a sum that can substantiate their business operations. For example, manufacturing companies should inject sums that exceed the cost of machinery.
Yes. The following rules should be observed: