Business Establishment in Vietnam: A Comprehensive Guide

Aspiring entrepreneurs often find themselves navigating the complexities of establishing a business in Vietnam. This comprehensive guide from NT International Law Firm demystifies the process, providing essential information on what it means to form a business, the legal framework, and the necessary steps involved.

Business Establishment in Vietnam: A Comprehensive Guide

What is Business Establishment?

Business establishment refers to the process of creating a legally recognized entity for conducting commercial activities. This involves registering your chosen business form (e.g., limited liability company, sole proprietorship) with the relevant government authorities and obtaining the required licenses to operate within Vietnamese law.

Legal Basis for Business Establishment

Legal Basis for Business Establishment:

The 2020 Enterprise Law acts as the bedrock for business establishment in Vietnam. It outlines the types of businesses allowed, registration procedures, and regulations governing company operations. Additional decrees and circulars issued by the Ministry of Planning and Investment provide further specifications and clarifications.

Eligibility:

While generally open to anyone, certain restrictions exist on who can establish a business in Vietnam. These include individuals employed in state security, those using state assets for personal gain and have been convicted, and individuals with legal limitations.

Essential Requirements:

Setting up a business in Vietnam entails fulfilling several key requirements:

• Business Name: Unique and compliant with Vietnamese naming conventions, avoiding confusion with existing businesses or prohibited terms.
• Registered Business Lines: Choose lines not restricted by law (e.g., prostitution, drugs).
• Business Location: Specify a definite address within Vietnam.
• Authorized Capital: Minimum capital varies depending on the industry.
• Company Seal: Register the seal with the authorities and display it on official documents.

Steps for Establishing a Business

Steps for Establishing a Business:

The process typically involves:

1. Application Submission: File a scanned copy of the business registration application through the national portal.
2. Document Review: The relevant agency assesses the application and provides feedback within 3 days.
3. Document Submission: Submit original documents to the provincial/city planning and investment department.
4. Decision and Notification: The agency reviews the documents and decides whether to issue a business registration certificate.
5. Result Collection: Receive the certificate and proceed with further steps.

Additional Procedures:

Once you have the certificate, additional steps include:

• Announcement and Seal Engraving: Publish the business establishment and engrave the official seal.
• Bank Account and Tax Registration: Open a bank account and register for initial tax records.
• License Fees: Declare and pay any required license fees.

Meaning of Establishing a Business

Meaning of Establishing a Business:

Forming a business offers numerous benefits for both the entrepreneur and society as a whole:

• Economic Opportunities: Create jobs, generate income, and contribute to economic growth.
• Value Creation: Produce goods and services, adding value to the economy.
• Tax Contribution: Generate revenue for the government to fund public services.
• Personal Growth: Develop entrepreneurial skills and experience.
• Social Impact: Address social issues like poverty and environmental protection.

Seeking Legal Guidance:

Navigating the intricacies of business establishment can be complex. Consulting with experienced legal professionals can ensure compliance with regulations, minimize risks, and streamline the process.

Conclusion:

Establishing a business in Vietnam can be a rewarding journey, fostering economic growth, individual success, and positive societal impact. This guide provides a starting point, but remember, seeking legal counsel and staying informed about the evolving legal landscape are crucial for a smooth and successful business formation.

NT International Law Firm is Here to Help

NT International Law Firm has addressed the question of how aspiring entrepreneurs such as you can open their first business with ease. 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