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Limited Liability Company (LLC)
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Representative Office (RO)
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Branch Office
(BO) |
Joint-stock Company
(JSC) |
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|---|---|---|---|---|
| Applicable | All investors | All members of WTO | All investors | All investors |
| Minimum Capital | Depending on the business activities | No requirements | No requirements | If trading on stock market, minimum 10 billion VND (~US$ 440,000), |
| Minimum Number of shareholders | ≥ 1 (individual or corporate) | Owned by head office | Owned by head office | ≥ 3 (individual or entity) |
| Limited Liability Protection | ||||
| Import- Export Activities | ||||
| Be a Shareholder of Another Entity | ||||
| Conversion to other entity type | ||||
| Corporate Income Tax | Depending on the business industries | No business activities that yield profit | Depending on the business industries | Depending on the business industries |
| Benefits |
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If you’re planning to start a 100% foreign-owned business in Vietnam, you’ll have four options:
Each entity has different formation requirements and procedures, which can take one to three months.
To incorporate in Vietnam, you need a business location. Besides using your own address or leasing office space (with restrictions), you can also explore:
Once you have selected the format and location of your business, you need to navigate key steps for your Vietnam business registration with:
A local nominee company is a company set up by a local representative (custodian) of a foreign investor or business. Together, the two parties sign a custodian agreement (or a nominee arrangement) so the representative can manage securities and assets on behalf of the foreign entity. In short, this company is considered a local company and enjoys the included benefits.
Tell us about your company’s needs and aspirations in Vietnam
Go over your plan with one of our bilingual business Consultants
Our consultants will contact you to process the necessary paperwork and create your company dossier
Let us simplify your business journey and make your mark in APAC’s fastest-growing economy
Yes, foreign investors who want to expand to Vietnam can set up a foreign-owned company in the country. The most common type of company setup for foreign ownership is an LLC (Limited Liability Company) due to its simple business structure and faster setup timeline. Depending on the type of business entity you want to pursue, there are further regulations for foreigners to follow when establishing a company in Vietnam.
For Vietnam company formation, there are four types of entities: Limited Liability Company (LLC), Joint-stock Company (JSC), Branch Office and Representative Office.
Although local laws don’t stipulate any minimum capital, 25-30,000 USD is commonly considered as the minimum capital investors should register to ensure smooth incorporation and business activities.
Yes. The Vietnamese law enables foreigners to open 100% foreign-owned companies in most business sectors. There are a few business sectors that you are restricted from, namely the following:
Yes, there are several options suitable for investors who wish to expand without forming a legal entity.
The process of starting an LLC or JSC in Vietnam takes approximately 40-60 days. If you want to start operating a business as soon as possible, we recommend purchasing a shelf company. With this method, InCorp can transfer the management control to you within a few working days.
Both local nominee companies and shelf companies are fast ways to incorporate business entities and penetrate the Vietnamese market successfully. A local nominee company is established through a nominee agreement with a trustworthy local partner such as InCorp. In this case, the company is considered as a local company, requirements for its establishment are not that strict, and it takes around 10 working days to incorporate a local company in Vietnam.
A shelf company is a previously established business with zero business activity and transactions. Investors who purchase a shelf company can start their business operations almost immediately without going through the company formation process in Vietnam.
Underestimating the role of a business partner or local nominee are one of the common business mistakes in Vietnam. Choosing a reliable local partner for your company is key to success in the country while reducing the potential risks. InCorp offers local nominee services without any interventions to your business processes. We also allow our partners to terminate the contract sooner that its expiry date.
