Question: Im from USA. I would like to open new company in Hanoi for export some product to vietnam to USA. we have company in USA so please advise me which type company we can open for export and import?
How much cost for new company? How much time its take for registration ? We have visited vietnam last year and pls confirm that we should take work permit for open company. How much tax we have to pay for yearly or half yearly to government?
Please email me rest of knowledge, give me mobile no also so we can discuss more .
Answer: With reference to questions in your email, please find the hereunder our advices for your information.
Legal ground:
(i) Law on Investment no. 67/2014/QH13dated 26 November 2014;
(ii) Law on Corporate no.68/2014/QH13dated 26 November 2014;
(iii) Decree no.118/2015/ND-CP dated 12 November 2015;
(iv) Decree no.78/2015/ND-CP dated 14 September 2015;
(v) Decree no.96/2015/ ND-CP dated 19 October 2015;
(vi) Other related legal documents,
(1) Regarding the type of company should be opened in Vietnam,
There are three forms of companies including (1) Limited Liability Company with only one member; (2) Limited Liability Company with two or more members; and (3) Joint Stock Company commonly established in Vietnam.
As you said that you currently have a company in USA, therefore, you can establish a 100% foreign invested company under the form of LLC with only one member in Vietnam under your name individually or under your company name. It means that you or your company also can be the investor of the newly set-up company.
However, the import and export of goods is the conditional business items for foreign investors. And, the Licensing Authority shall much consider on the business plan (contributed capital shall be invested into Vietnam), financial capacity and experience of investor before granting the Investment Registration Certificate. Therefore, if you set up the company in Vietnam under your company, we think that it is easier for proving above requirements.
In addition, under Vietnamese regulations, there are some goods which are prohibited or restricted to be imported or exported from Vietnam. Therefore, please kindly send us the type (name) of the products and its HS Code so that we could check the current policies for such goods.
(2) The costs and expenses for establishing the company in Vietnam,
Our service fee for all work described in the checklist shall be 4 thousand United States Dollars, excluding 10% VAT, bank charge, translation fee from English to Vietnamese (20 USD per page of 300 words).
(3) The procedure and time for establishing the company in Vietnam,
We enclose herewith the checklist for set-up the 100% foreign invested company under the form of one member limited company doing the import and export of goods, in which specifies the application files and time for such procedures for your information.
(4) Working permit for the open of the company in Vietnam,
In accordance with Clause 1 and 2 Article 172 of Vietnam Labour Code, the foreigners woking in Vietnam shall not be subject to the issuance of working permit in case of (1) being the contributed member or the owners of limited liability company, or (2) being the member of the Management Board of joint stock company. It means that if you set up the company in Vietnam under your indina company name, you still be required for working permit after obtaining the Investment Registration Certificate and Corporation Registration Certificate. This obligation shall be waived if you set up the company in Vietnam under your name individually. However, if so, the process of licensing shall be much more difficult than the case is under your india company name.
(5) Taxes to be payable to the government,
As for the taxes to be payable to Vietnamese government after the company has been established in Vietnam, the company shall have to pay the following taxes:
(i) Business license tax: to be paid upon the establishment of the company and annually in the beginning of the year. This tax is fixed and based on the amount of the company’s charter capital.
(ii) Value added tax: shall be paid monthly or quarterly depended on volume of payable tax. The payable amount of tax shall be based on the goods to be purchased or services to be used.
(iii) Corporate income tax: shall be paid quarterly or annually depended on the payable tax of the company. The payable amount of tax shall be based on the income and expenses of the company.
(iv) Import or export taxes: shall be paid when you import or export.
Please take our above-mentioned into your consideration. Should you need any further information or have any queries, please feel free to contact us.
If you would like further information on New company in Vietnam, please either email to our Partners at: info@sblaw.vn or call to our Office:
- Ha Noi Office: +84 (4) 62 62 0246
- HCM Office: +84 (8) 35 208 101.
