Question:
- How long need to take to complete the incorporation and registration with relevant authorities?
- What is the required capital amount to invest, for 100% foreign owned entity?
- As this is 100% subsidiary entity and the shareholder is definitely corporate shareholder, do we need individual shareholder?
- How many directors are required? Any restriction on foreign directors, not station in Vietnam but just hold the directorship?
- Any local director required?
- Any area that we need to take note and aware?
Answer:
- How long need to take to complete the incorporation and registration with relevant authorities?
A FOE has to go through 02 steps to be granted Investment Registration Certificate and Enterprise Registration Certificate. After that, other sub-licenses might be required for the certain business lines. Generally, it takes around 30 - 45 working days to get the IRC, and 7 working days to get ERC.
- What is the required capital amount to invest, for 100% foreign owned entity?
For those mentioned-above business lines, no minimum investment/charter capital is required. Based-on the scale of project, the Investor should propose a feasible investment capital for his project. For our former cases, the foreign Investor usually started from 100.000 - 200.000 USD for service-providing company, while 200.000 - 500.000 USD for manufacturing company.
- As this is 100% subsidiary entity and the shareholder is definitely corporate shareholder, do we need individual shareholder?
Individual shareholder is not required by law.
- How many directors are required? Any restriction on foreign directors, not station in Vietnam but just hold the directorship?
At least 01 director is required. This person will be Legal Representative and President of the company concurrently. The foreign director holding title legal representative must obtain Work Permit, and Temporary Residency Card to legally working in Vietnam.
- Any local director required?
No local director is required.
- Any area that we need to take note and aware?
The charter capital of company must be fully contributed within 90 days upon incorporation. Therefore, the Investor need to carefully consider when declaring investment/charter capital.
