Located on the eastern coast of Southeast Asia, Vietnam is one of the fastest-growing economies in the world, measured by its gross domestic product (GDP). According to the World Bank, Vietnam’s real GDP will grow at an impressive rate of 6.8% and 6.5% in 2025. The increasing demand for technology products drives this growth. Additionally, other sectors, including agriculture, production, and oil, are also experiencing stable growth, making Vietnam an ideal destination for business. In short, setting up a company in Vietnam can be a rewarding decision for both resident entrepreneurs and overseas investors. However, before proceeding with incorporation, it is essential to consider the legal requirements. If you find it taxing, Business Setup Worldwide (BSW) can make everything smooth sailing. Here is everything you need to know about company formation in Vietnam.
Structures Available for Company Formation in Vietnam
Those who want to set up a company in Vietnam can choose one of the following business vehicles based on their compliance, tax, and business needs:
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Private Enterprise
A private enterprise is a single-member company that combines the benefits of a sole proprietorship with those of a corporation. The only downside it offers is the unlimited liability, which can put the owner’s assets at stake during debt repayments or winding up.
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Partnership
Two or more partners can establish a partnership company. A partner may be a general partner (liable for all obligations of the company with one’s assets) or a limited partner (liable for the company to the extent of one’s capital contribution).
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Limited Liability Company
A limited liability company (LLC) is a legal entity established by its members through capital contributions. It can have one or more members. The capital contribution of each member is treated as their respective equity. The members of an LLC are liable for the financial obligations of the LLC to the extent of their capital contributed.
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Joint Stock Company
A joint stock company (JSC), or shareholding company, is a legal entity established by its founding shareholders on the basis of their subscription of shares of the company. A JSC is required to have a minimum of 3 shareholders.
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Branch
A branch office is an offshoot of a company located abroad that wishes to conduct business in Vietnam, provided the parent company has been in business for at least 5 years.
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Representative Office
Foreign companies that have been in business for at least one year may establish a representative office in Vietnam. A representative office is not permitted to engage in manufacturing or commercial activities but may conduct market research or promotional activities on behalf of its parent company.
Benefits of Company Registration in Vietnam
Setting up a company in Vietnam can lead to several benefits, including but not limited to:
Due to foreign direct investment (FDI) and the significant expansion of the private sector, Vietnam is one of the fastest-growing economies in Asia, boasting a high GDP growth rate.
Located in the center of the Association of Southeast Asian Nations (ASEAN), Vietnam occupies a strategically important position in terms of market access. Moreover, Vietnam has a long coastline and is proximal to major global shipping routes.
Vietnam is open to the global economy. It is a member of ASEAN, ASEAN Free Trade Area (AFTA), and the World Trade Organization (WTO). It also has over 60 double tax agreements.
The population in Vietnam is young, skilled, and abundant. The literacy rate exceeds 90%, creating a fertile ground for a highly qualified workforce that serves diverse sectors.
Vietnam has a stable government and social structure, making it an ideal place for capital investment.
How Do You Apply for Vietnam Company Formation
Setting up a company in Vietnam is a straightforward process. All you need to do is follow the given steps:
Step 1: Contact BSW
Visit the BSW portal and submit your inquiry about company registration via Chat, WhatsApp, or email.
Step 2: Bespoke Consultation
Our experts will review your inquiry to determine your requirements. Based on the assessment, our team will contact you by phone for a one-on-one session.
Documents Required for Company Formation in Vietnam
- A certificate showing the necessary amount of investment.
- Articles of Association certificate.
- Proof of registered address.
- Information on the shareholders or members of the LLC.
- The business plan includes the investment project and the money that is invested.
- Information on the company director or legal representative and the power of attorney.
Why BSW?
Business Setup Worldwide is a platform designed to help you establish your business. From incorporation, registration, and licensing to establishing your office space, we facilitate the formation of your company through comprehensive counseling and incubation services. Business Setup Worldwide's proprietary business design techniques, combined with its specialized industry knowledge and global reach, enable companies to anticipate changes in customer priorities and the competitive environment and then design their businesses and optimize operations to capitalize on the opportunities created by those changes. Contact us today to start a hassle-free business journey.
