Question: I am from Nantes in France
My partner and I, both france, are planning to create a new hostel.
The main idea is to rent a furnished property that is almost ready to run and doesn’t need a lot of changes. We have not been in the country yet and the location is not chosen.
We will go to Vietnam at some point this year in order to see properties, conditions, prices and negotiate.
At the moment we are trying to gather as much info as possible to evaluate the possible investment, and therefore we would really appreciate if you can help us with the following questions:
- Ease of doing business to foreigners
- As foreigners, can we own 100% of the company or do we need a local partner?
- Corporate Tax
- Tax incentives for foreign capital
- Individual Tax
- Minimum startup capital
- Total cost and time to create a company
- Visa and work permit cost. Is it annually?
- Can you provide us lawyer and accounting services pre and post creation of the company? How much would be your fee?
We are trying to discover all (or as many) critical points involved in the creation of a company before to visit the country.
I know there are a lot of questions, but if you could give me an answer to all or some of them would be a fantastic starting point.
Answer: This is reference to your conversation below. I am Kien Tran (Mr.) – Lawyer of SB Law. I was entrusted to provide you legal advice regarding to establishment of foreign invested company in Vietnam. Please find our answers in blue below:
- Ease of doing business to foreigners. It shall very much depend on investment sectors that you intend to run in Vietnam. In the field of hospitality, it is not too complicated. You can complete setting up the company and obtain operation license within 2.5 months.
- As foreigners, can we own 100% of the company or do we need a local partner? You can own 100% of the company.
- Corporate Tax. 20% of total profit.
- Tax incentives for foreign capital. No tax incentive in the field of hospitality.
- Individual Tax. Personal Income Tax for residents in Vietnam shall be subject to progressive personal income tax, from 10%-35%.
- Minimum startup capital. Minimum startup capital is not required for starting a hostel.
- Total cost and time to create a company, We shall advise in detail upon when you confirm in which city/province you will setup the company.
- Visa and work permit cost. Is it annually? Work permit cost shall be 650USD. Temporary residence permit (equivalent to multiple business visa): 300USD.
- Can you provide us lawyer and accounting services pre and post creation of the company? How much would be your fee? No.
If you have any further question, please do not hesitate to contact us.