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Starting a company in Vietnam is as easy as ABC, and you can take advantage of the country’s fast-growing economy to blossom in no time.
You must meet specific requirements as a prospective company owner, general to every Vietnamese national. However, foreigners might have to go the extra distance since there are particular requirements they must meet.
If you’re looking at setting up a company in Vietnam, this guide will provide insight into the requirements you would need.
1. Minimum Capital Requirement
You only require more than enough minimum capital to establish a sustainable company. Otherwise, there’s no set minimum capital requirement you’ll need since most business lines don’t need it.
Companies that seemingly defy that, requiring minimum capital requirement include banking, real estate, insurance, and vocational schools.
Other lines of business such as Fin-tech and Finance and language center need a minimum capital close to $10,000, but it’s possible to start with way less. Usually, the Department of Planning and Investment has the mandate to assess your capital contribution and if it falls in line.
Related: Why Every Business should Consider managing Business Data
2. Foreign Ownership Regulations
Local prospective company owners in Vietnam can seamlessly set up a company since there are no stringent requirements.
Once a foreign company owner meets all these requirements for setting up a company in Vietnam, they can fully own trading, manufacturing, education, and IT. The rest, including tourism, logistics, and advertising, don’t, and any foreign owner must attune to a Vietnamese joint partnership.
However, some businesses’ foreign ownership terms aren’t regulated by the World Trade Organization, so it helps to consult with the industry’s ministry.
3. Resident Director
Every budding company must have at least one resident director to be registered. The resident director must have a Vietnamese address but won’t necessarily need a residency status when setting up a company in Vietnam.
A work permit won’t be paramount if the director is also one of the company’s founders and can instead apply for a permit exemption. However, a work permit is necessary if they aren’t Vietnamese or among the company founders.
Usually, a resident director will act as the company’s talisman and lead the rest who aren’t familiar with the incorporation process.
4. Registered Address
Before setting up your company, you must have a business address. However, some specific lines of business, including consulting and service industries, can have virtual offices, which usually don’t require brick-and-mortar locations.
For some, proof of physical location is a mandatory check before registering and includes retail trading, manufacturing, and restaurants.
Usually, before setting up a company in Vietnam, the department of planning and investment must check the address and ascertain it. You’ll only go ahead with the incorporation if you provide physical proof.
Conclusion
Setting up a company in Vietnam isn’t strenuous, but you must understand what you require. The incorporation process isn’t entirely intricate, and you can navigate with ease, whether as a foreigner or a local.
Lucky enough, there are numerous incorporation agencies you can work with, and since they’re well rounded with conducting the entire process with ease, it’ll make it seamless for you. Just be sure that you meet the requirements for setting up a company in Vietnam, and you’ll be good to go.
