Question: Allow me to introduce myself, I am Investor from a company, based in Malaysia. We are Distributing and retailing of Sport Products in South East Asia.
We are currently exploring business in Vietnam and understand that there might be Foreign Investment Rules we need to take note.
I have few questions which I hope you could assist:
Do your firm provide service on Company Search of a local entity? And can the Company Search done in English? What would be the fees for Company Search?
We wish to explore business in Vietnam mainly Retailing and distributions of Sports Products, what are the requirements for 100% foreign own entity?
We are exploring 2 ways taking over an existing business which has been established; orincorporate new company and acquire part of the business of an existing business in VN i.e taking over some stores
As we are looking to expand the business in VN, hence we would appreciate if you could advise the timeline requires for both methods above.
Looking forward to hear from you. Answer: We would like to advise you as follows:
Do your firm provide service on Company Search of a local entity? And can the CompanySearch done in English? What would be the fees for Company Search?
Yes, we do. We can do the Company Search in English. Our fee for Company Search is 41USD.
We wish to explore business in VN mainly Retailing and distributions of Sports Products, what are the requirements for 100% foreign own entity?
Requirements for a 100% foreign owned entity conducting retailing and distributions of Sports Products as follows:
The Foreign owned entity must obtain a business license or retail license from the provincial department of industry and trade. In case of Sport Products, for carrying out retailing activities, you shall also be required to setup retail outlets. A retail outlet should be located in a trade center. I
n case the retail outlet is 500 meter square upward, an Economic Need Test Board ("ENT Board") shall be required to determine whether to permit you to setup the retail outlet or not. For each retailed outlet from the 2nd one, unless such retail outlet is less than 500 meter square in size and located in a shopping mall and not classified as convenience store or mini mart, ENT Board shall be required.
We are exploring 2 ways taking over an existing business which has been established; orincorporate new company and acquire part of the business of an existing business in VN i.e taking over some stores
For the first option, you shall be required to obtain an approval letter from the competent authority before acquiring the existing business. For this, it shall take you about 15 working days to complete. Upon after approval letter is granted, two parties can proceed with acquisition and notify the competent authority to record you as new shareholder/owner of the company. It shall take you about 5 working days to complete.
Upon after completing the acquisition, you shall be required to obtain the business license and retailed outlet license as mentioned in the Item 2 above. It shall take you about 40 working days to complete this. The actual timing schedule may be different depending on location and size of each retailed outlet. If you acquire an existing business and it already has retailed outlets, it also take you time to study whether it is capable for obtaining the retailed outlet license or not. Please note that, retailed outlet license is not required for a pure local trading company.
For the second option, you shall be required to obtain an Investment Registration Certificate. For this, it shall take you about 15 working days to complete. Then, it shall take you about 5 working days to complete registration of the new Company.
After registration of the new Company, you shall be required to obtain the business license and retailed outlet license as mentioned in the Item 2 above. It shall take you about 40 working days to complete this. The actual timing schedule may be different depending on location and size of each retailed outlet.
I do hope that the above information is helpful for you. If you have any further questions, please feel free to contact us.
