Company registration in Vietnam

Question:

I'm investor from Hongkong. It's my great honor to know you through the Internet. Our company is located in Hongkong, which is dedicated in management consulting, registration.

And now there is a client from our company who wants to establish a company in Vietnam. Therefore, I have some questions to consult you and wish you can help us.

1.How many shareholders for start-ups will required?If there any nationality or domicile will required?

2.How many directors for start-ups will required?If there any nationality or domicile will be required?

3.How much registered capital for start-ups will required?Do the clients deposit the money in the company`s bank account?

4.Whether office agency requires a practical office address?

5.What materials my client must provide when the shareholders are individual ? Could you give me a checklist?

6.What materials my client must provide when the shareholders are as a company ?Could you give me a checklist?

7.Need all materials my provide be notarized ?

8. How long does it take to complete registering a office agency?

9.After setting up company,what materials my client will obtain?please tell me detail?

10.How much will you charge for the company registration, and what kind of service will be included?

11. Is there any tax required? If my client wants to do the importing and exporting, need he to apply the importing and exporting license? If need, how much will it be?

Answer:

I am Lawyer of SB Law. I was entrusted to provide you legal advice regarding to your issue below. Please find our answers ass follow:

1. Number of shareholders shall very much depend on what kind of company that they intend to establish. For example, for setting up limited liability company, you shall need at least 01 shareholder (maximum 50 shareholders). Meanwhile, for setting up joint stock company, you shall need at least 03 shareholders and there is no limitation on number of shareholders.

Regarding to nationality of shareholder, it shall depend on specific requirements of each industry that the company carry out business activities. For example, for carrying out business activities in Tourism, there must be at least 01 shareholder being Vietnamese Company holding license for providing international tourism. Meanwhile, for trading cosmetic products, the company can be established under the form of wholly foreign owned company.

2. Under Vietnam Law, only Joint Stock Company requires for setting up Board of Directors. Board of Directors shall have at least 03 persons, maximum 11 persons. There is no specific nationality or domicile required for Director.

3. Except for several specific business fields such as hospital, clinic, tourism, banking, finance, real estate etc in which minimum capital is required, most of business field does not require for minimum capital. However, with respect to foreign invested company, during the licensing process for obtaining Investment Registration Certificate, Investor shall be required to provide evidence that they have qualified financial ability to carry out investment project in Vietnam. For this purpose, they can provide Bank's Confirmation Letter of account balance or Audited Financial Statements for at least 02 recent years.

4. Practical office address is highly recommended. However, Client can save their cost by use of virtual office address. Virtual Office Address shall not be accepted in several specific business activities.

5. Bank Account Balance Confirmation Letter and Passport (02 first pages). If these documents are prepared abroad, they must be legalized.

6. Certificate of Incorporation; Memorandum and Articles of Association or Company Charter; Audited Financial Statements for most recent two years or Bank Account Balance Confirmation Letter and Passport (02 first pages) of a Director who is appointed to manage the Company in Vietnam. These documents must be legalized.

7. Yes, documents must be notarized and legalized.

8. It shall very much depend on specific business activities of the Company. Generally, it shall take you about 20 working days from submission of the application dossier to the Licensing Authority to complete all.

9. Investment Registration Certificate and Enterprise Registration Certificate. With several specific sectors, after setting up the company, the company shall be also required to obtain sub-license for officially operating.

10. It depend on specific business activities and location of the company to be setup in Vietnam. Our minimum rate is 4,000USD. The fee is exclusive of VAT 10%; actual cost for translating documents from English into Vietnamese (10USD/150 words) and actual accommodation cost if you require us to travel out of Hanoi or Ho Chi Minh City.

11. Generally, tax applicable to a company in Vietnam shall be: VAT (0-10%), Business License Tax (50-150USD/year); Corporate Income Tax: 20% of taxable profit. Company who import/export goods from/to oversea shall be subject to Import/Export Duty. Companies who trade luxury goods/service like wine, alcohol, car... shall be subject to Special Consumption Tax. etc.

If your Client wishes to carry out import and export, in addition to Investment Registration Certificate and Enterprise Registration Certificate, they shall be also required to obtain Business License. For setting up such import-export company, our fee shall be 5,000USD (as minimum). The fee is exclusive of VAT 10%; actual cost for translating documents from English into Vietnamese (10USD/150 words) and actual accommodation cost if you require us to travel out of Hanoi or Ho Chi Minh City.