Question: We have a Poland client who has a BVI Company. He would like to set up a Vietnamese Company to open a business bank account in Vietnam.
Please advise us the following:
1. Is it okay to the Vietnam Authority to use BVI Company to hold the FIE Company in Vietnam? Or if you think that using Hong Kong Company is better?
2. Or, will it be more easier to have natural person to set up a new FIE Company in Vietnam?
3. Can the Vietnam Authority accept Poland passport holder to set up a new Company?
4. Client does not have business in Vietnam, and his business operation is trading – mainly, OEM manufacturing and sales of electrical and lighting equipment from China to international market.
He would like to have the bank account in Vietnam to pay to their Chinese suppliers.
His BVI Company has a bank account in China but the banking support is not so good due to no internet banking service.
Will it be difficult for Vietnam Authority to approve the company formation due to no business counterparts in Vietnam?
- If the Company in Vietnam must at least receive a small difference from the payment made to China Company as a portion for its intermediate trading service — how big difference? How many percent?
6.Do you know if the Vietnam banks will only open bank account for Vietnamese Company? This client has other Companies in HK, BVI that also wants to open bank account in Vietnam.
Thank you for your kind assistance. We look forward to your reply soon.
Answer: As your question, we would like to advise as follows:
- Is it okay to the Vietnam Authority to use BVI Company to hold the FIE Company in Vietnam? Or if you think that using HK Company is better?
It is ok to use BVI Company to hold FIE Company in Vietnam. However, if you could use HK Company as a substitute, I prefer HK Company.
2. Or, will it be more easier to have natural person to set up a new FIE Company in Vietnam?
A natural person can be a consideration in this case.
3. Can the Vietnam Authority accept Russian passport holder to set up a new Company?
Yes, it can.
4. Client does not have business in Vietnam, and his business operation is trading – mainly, OEM manufacturing and sales of electrical and lighting equipment from China to international market. He would like to have the bank account in Vietnam to pay to their Chinese suppliers. His BVI Company has a bank account in China but the banking support is not so good due to no internet banking service. Will it be difficult for Vietnam Authority to approve the company formation due to no business counterparts in Vietnam?
In this case, we can classify activities of the Company into intermediate trading service. The Company in Vietnam shall act as a brokerage to connect the Buyer in Russia and Supplier- OEM Company in China. That is the way you can explain how the Company in Vietnam can receive money from Russia and render payment to China Company. In this case, the Company in Vietnam must at least receive a small difference from the payment made to China Company as a portion for its intermediate trading service. Otherwise, the Company in Vietnam could not receive money from Russia and render payment to China Company.
- If the Company in Vietnam must at least receive a small difference from the payment made to China Company as a portion for its intermediate trading service — how big difference? How many percent?
The Law is silent on how many percent to be reserved. Please make sure that the difference is enough to compensate for the expense for office rental and labor cost in Vietnam. That can be fine.
- Do you know if the Vietnam banks will only open bank account for Vietnamese Company? This client has other Companies in HK, BVI that also wants to open bank account in Vietnam.
Almost of banks in Vietnam only accept to open bank account for Vietnamese Company. If a Company in HK or BVI wants to open bank account in Vietnam, it must prove that the company has a business transaction with a Vietnamese company and the bank account is opened to support such business transactions.
