Navigating the Woodworks: A Comprehensive Guide to Establishing a Furniture Company in Vietnam

The Vietnamese furniture industry is experiencing a golden age, fueled by rising domestic demand and booming exports. This presents an exciting opportunity for aspiring entrepreneurs to carve their niche in this vibrant landscape. However, navigating the legal and procedural intricacies of establishing a furniture company can be daunting. This comprehensive guide from NT International Law Firm, meticulously crafted with legal basis, equips you with the knowledge and resources to confidently launch your dream furniture venture in Vietnam.

Navigating the Woodworks: A Comprehensive Guide to Establishing a Furniture Company in Vietnam

Laying the Foundation: Choosing Your Furniture Company Structure

Company Types:

• • Private Enterprise: Ideal for solo ventures, requiring only one capital contributor.
  • One-Member LLC: Offers limited liability protection for single owners.
  • LLC with 2 or more members: Suitable for shared ownership among 2-50 individuals or organizations.
  • Joint Stock Company: Best for raising capital through public share offerings, requiring at least 3 shareholders.

Charter Capital:

• • Interior Design & Construction: No minimum capital requirement.
  • Furniture Manufacturing: Minimum capital of 10 million VND for one-member companies and 50 million VND for companies with multiple members (as per Decree No. 43/2017/ND-CP).
  • Capital Contribution: Assets, land use rights, machinery, Vietnamese or foreign currency, and even intellectual property (with proper valuation) are acceptable forms of contribution.

Company Name:

• • Must be bilingual (Vietnamese and English).
  • Clearly distinguishable from existing businesses to avoid trademark infringement.
  • Follows the prescribed structure (e.g., “[Company Name] Furniture LLC”).
  • Culturally appropriate and ethically sound.

Building Your Brand: Identity and Location

Building Your Brand: Identity and Location

Headquarter Address:

• • Must be a physical address, not a virtual one.
  • Proof of ownership or a valid rental agreement is required for leased premises.
  • Avoid residential areas; choose a business-designated location.

Industry Code:

• • Select the code that best reflects your core business activities:
    • 7410: Specialized design activities (interior design and construction).
    • 4330: Completion of construction works (furniture installation).
    • 3100: Manufacture of cabinets, shelves, tables, chairs.
    • 9524: Repair of furniture.

Selecting Your Captain: The Legal Representative

Selecting Your Captain: The Legal Representative

• Can be a Vietnamese citizen or a foreigner with full legal capacity.
• Not necessarily required to be a company member.
• Should possess relevant expertise and business acumen to ensure smooth operations.

Charting Your Course: Registration and Compliance

Documentation:

• • Prepare the necessary documents, including an application for company establishment, company charter, list of members/shareholders, ID copies of capital contributors, and authorization documents (as per Decree No. 01/2021/ND-CP).

Registration Process:

• • Submit documents to the Business Registration Office under the Department of Planning and Investment (DPI) in your chosen province or city.
  • DPI verifies documents and issues a Business Registration Certificate within 3-5 working days if everything is in order.
  • Complete post-registration steps like acquiring company seals, purchasing electronic signatures, and setting up e-invoices.

Operational Compliance:

• • Pay annual license tax (except for the first year).
  • File personal and corporate income taxes as applicable.
  • Submit value-added tax (VAT) and quarterly/annual financial reports.

Conclusion:

Establishing a furniture company in Vietnam requires meticulous planning, legal awareness, and a commitment to compliance. This guide has equipped you with the knowledge and resources to navigate the process with confidence. By choosing the right company structure, building a strong brand, and adhering to legal requirements, you can transform your furniture dreams into a thriving business venture in this dynamic and promising market. Remember, dedication, innovation, and a commitment to quality will be your compass as you embark on your journey to success in the Vietnamese furniture industry.

NT International Law Firm is Here to Help You

NT International Law Firm is Here to Help You

NT International Law Firm has addressed the question of what a furniture company is and how you can open your own furniture business. 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 2015 Civil Procedure Code in English
• The 2020 Law on Enterprise in English