Question: We are foreign investors, we would like to set up company in the field of (i) Online Advertisement Service; (ii) E-Commerce Platform and (iii) Social Network wherein customers can post their comments and discuss about products.
Please advise the legal framework and other matters:
Answer: SBLAW would like to introduce some legal notes for Vietnam incorporation as follows:
1. Time frame for incorporation of a foreign invested company in Vietnam shall be about 22 working days to 45 working days. In some case, due to the complexity of the case, the licensing process may be longer. In some case, location of the company may impact the time frame. Incorporating company in Ho Chi Minh City generally is much longer than Hanoi.
2. In this case, the company shall conduct business in online advertisement service and e-commerce platform. Thus, the company should be incorporated under the structure of limited liability company or joint stock company out side industrial park or economic trade zone. In Vietnam, generally, industrial park and economic trade zone are for factories or trading.
3. Having reviewed these website, we found that it is the combination of following services: (i) Online Advertisement Service; (ii) E-Commerce Platform and (iii) Social Network wherein customers can post their comments and discuss about products. In this case, your Client can only provide (i) Online Advertisement Service and (ii) E-Commerce Platform only. Social Network is not opened for foreign investor. The website must rent hosting in Vietnam.
4. For online advertisement, Client shall be required to joint venture with a company in Vietnam which has been licensed in advertisement services in Vietnam. Foreign ownership in the Joint Venture Company is not restricted.
5. For above services, Client should invest about 200-300,000 USD. Such amount is not minimum capital. However, it shall increase possibility of success of the case. Client does not need to deposit such amount into bank account before incorporation. However, Client must provide sufficient evidence to prove that he can contribute such amount of money. For example, bank account statement or audited financial statement may be considerable.
6. Client can obtain tourist visa oversea. We can only assist them to extend visa in Vietnam when they are in Vietnam already. According to our practice, there is no restriction to Indian National. However, possibility for obtaining work permit for 11 Indian Employees in one time shall not be high.
7. Virtual Office can be accepted. However, it is not favored by Competent Authority. In case your Client lease Virtual Office, the competent authority shall grant the License with short validity term. Leasing a permanent office shall be the best option.
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