Your Guide to Establishing a Foreign-Invested Company in Vietnam (2023)

Vietnam’s vibrant economy beckons, and foreign investors are heeding the call. Establishing a foreign-invested company (FIC) unlocks lucrative opportunities, but navigating the intricate legal landscape can be daunting. Fear not! NT International Law Firm offers a roadmap to success, guiding you through the essential documents and procedures.

Your Guide to Establishing a Foreign-Invested Company in Vietnam (2023)

What is a Foreign-Invested Company?

An FIC is an enterprise established under Vietnamese law, where foreign individuals or organizations hold shares or contribute capital. This legal framework grants you access to Vietnam’s thriving market while safeguarding your personal assets with limited liability protection.

Getting Started

Your Roadmap to Success:

1. Securing the Investment Certificate:

• Formalities: Application, project proposal, and financial documents tailored to your project complexity.
• Issuing Authority: Department of Planning and Investment, or relevant agency depending on your chosen field.
• Timeframe: Expect a wait of 5-15 working days.

2. Acquiring the Business Registration Certificate:

• Documents: Prepare an application, company charter, member/shareholder list, ID copies, and the Investment Certificate (if applicable).
• Processing Agency: This process is handled by the Business Registration Office.
• Timeframe: Breathe easy, this step takes just 3 working days.

3. Shaping Your Company:

• Types: Choose your structure wisely! Options include one-member LLCs, LLCs with two or more members, and joint stock companies.
• Procedures: Draft a company charter outlining your vision, register your company seal, and officially announce your establishment.

4. Capital Contribution and Share Purchase:

• Documents: Prepare an application, financial statements, and relevant contracts detailing your investment plans.
• Approval Agency: The Foreign Economic Relations Department oversees this critical step.
• Timeframe: Patience is key; expect a 15-day timeframe for approval.

5. Streamlining Legal Representation:

• Documents: Ensure a smooth transition by providing a change notice, the new representative’s ID, and relevant meeting minutes.
• Processing Agency: The Business Registration Office handles this update.
• Timeframe: Breathe easy, this change is processed in just 3 working days.

6. Navigating Personal Income Tax:

• Declare: Transparency is key! Declare all capital/share transfers, even if they are non-taxable.
• Documents: Prepare a tax declaration form, transfer contract, and payment vouchers.
• Submission: Simplify the process by submitting documents to the tax authority managing your enterprise.

Frequently Asked Questions

FAQs for Future-Focused Investors:

• Investment Forms: The possibilities are endless! Establish economic organizations, contribute capital, purchase shares, or utilize BCC contracts.
• Incentives: Yes! FICs can enjoy Vietnamese investment incentives upon meeting specific requirements.
• Taxes: Similar to Vietnamese businesses, FICs are subject to value-added tax, corporate income tax, license tax, and others.
• Investment Certificate: This document is essential for foreign investors and companies with majority foreign ownership.
• Company Types: Choose from partnerships, joint stock companies, and LLCs (one or two+ members).
• Branches/Offices: Yes! FICs have the flexibility to establish branches, representative offices, and business locations.

What You Need To Remember

Remember:

• Seek expert guidance: Partner with NT International Law Firm for personalized support and navigate the intricacies with confidence.
• Stay informed: Deadlines and procedures can vary depending on your specific circumstances. Consult the latest Vietnamese regulations to ensure smooth sailing.
• Embrace the journey: With the right knowledge and support, establishing your FIC in Vietnam can be a rewarding experience that unlocks your business potential in this dynamic market.

Embark on your Vietnamese venture with confidence! NT International Law Firm is your trusted partner, guiding you every step of the way.

NT International Law Firm is Here to Help

NT International Law Firm is Here to Help

NT International Law Firm has addressed the question of how foreign-invested companies are established in Vietnam. If you have any further questions or concerns regarding corporate law, please contact our law firm immediately for expert legal advice.

If you require any legal assistance, please feel free to reach out to us via phone at 090 252 4567 or through email: info@ntpartnerlawfirm.com. At NT INTERNATIONAL LAW FIRM, our team is committed to offering you prompt and personalized advice.

You also might be interested in:

• The 2015 Civil Code in English
• The 2020 Law On Enterprises in English
• The 2020 Law On Investment in English