Find and compare company incorporation services in Vietnam

The incorporation process of each legal entity type is different and takes around one to three months from the Department of Planning and Investment (DPI).

In general, foreign investors should pursue two main certificates, which are Investment Registration Certificate (IRC) and Business Registration Certificate (BRC) / Enterprise Registration Certificate (ERC). In some cases, if the nature of business activity falls under the Negative List, some sub-licenses of business will be required. Thus, it takes more time than expected.

Normally, to set up a limited liability in Vietnam, you are required:
1. Determine whether region ownership is allowed in the company or not
2. Under negative list and WTO commitments, foreign ownership can be allowed up to 100%, however, some business activity, foreign ownership will be restricted or even prohibited)
3. Have a registered Vietnam’s office address and business location (in case office and business location are different)
4. Appoint at least one resident legal representative, open a capital account with a local bank, required for share capital injection and transfers of future earnings abroad
5. Obtain approval for a foreign investment registration certificate (IRC), enterprise registration certificate (ERC), and other sub-licenses (if any)

Department of Planning and Investment decides on the minimum capital requirement depending on how capital-intensive is the field of business. The most common amount of minimum capital for a limited liability company is USD 10,000.

This amount is relatively small compared to other similar markets. In Indonesia, for example, the minimum amount of paid-up capital is ~USD 175,000.

However, it is also possible to set up a service company with a minimum capital of USD 3,000. For manufacturing, the funds should exceed the cost of machinery.

Although now Vietnam allows 100% foreign ownership, having a local company will be a strategic option for you. A company is considered local if at least 51% of the company is owned by a local. This could help you to reduce time and cost spent on corporation and licensing.

A representative office gives you a legal presence in Vietnam without setting up a company and is ideal for:
1. conducting market research
2. finding investment opportunities
3. outreaching business partners in Vietnam
4. promoting the parent company
5. supervising agreement signings with Vietnamese partners