Foreign investor: We are USA company and have operations globally and are currently examining the potential of the Vietnamese market for our company. At this point we are interested in finding out about registering a subsidiary company in Vietnam, either a sales office or production facility as well.
Can you provide services in regards to company registration and formation in Vietnam?
Lawyer: This is reference to your email below. We understand that you intend to extend business activities in Vietnam through registering a subsidiary company in Vietnam either for a sale office or production facility.
We therefore provide here below brief of procedures for registration of subsidiary company in Vietnam for your reference.
Under Vietnam Law on in Investment, in order to register a subsidiary company, you must obtain the Investment Certificate from the provincial competent authority.
Not like other countries in the regional, when you wish to setup a company in Vietnam, you must have a serious business plan for operation of such company, including investment capital, business activities as well as location of the company in a medium or long term. Administrative procedure for formation of the company therefore shall be classified to two following categories:
1. Registration of Investment Project: This procedure applicable to company operating in the field of business classified to non-conditional investment sector and total investment capital not exceeding about 15,000,000USD. Under Vietnam Law, the registration of investment project shall be complete within 15 working days from submission of application dossier to the competent authority.
2. Examination of Investment Project: This procedure applicable to company operating in the field of business classified to conditional investment sectors like goods distribution, tourism, finance, logistics etc or having total investment capital exceeding about 15,000,000USD. Under Vietnam Law, examination of Investment Project shall be completed within 45 working days from submission of application dossier to the competent authority.
In this case, if you wish to setup sale office in Vietnam only, the registration of such subsidiary company shall subject to the Examination of Investment Project. However, if you wish to setup a production facility and sell products manufactured by the subsidiary company in Vietnam and the total investment of the project does not exceed 15,000,000USD, it shall be subject to registration of Investment Project. We also would like to note that, for setting up production facility, you shall need lease land lot in Vietnam. The Land Lot must be compliant with the master plan of Vietnam and the in-principal approval or agreement on Lease of Land Lot shall be required upon submission of application dossier for setting up the subsidiary company.
We shall provide you a detailed legal service proposal shall be sent you upon receipt of following information:
– Which of cities that you intend to locate the subsidiary company in Vietnam?
– What is the business activities of the subsidiary company? If it involves with production, please name the products, technology for producing such products and scale of the production facility. If it involves with sale activities, please name the products to be sold and HS Code of such products.
– How much do you intend to invest into such subsidiary company? For sale of products and manufacturing the products, Vietnam Law does not require for minimum capital. However, you must estimate your investment capital for medium and long term operation of the subsidiary company.
We do hope that the above information is helpful for you. If you have any further inquiry, please feel free to contact us.
