Entrepreneurs wish to incorporate and register a new firm in Vietnam, SBLAW would like to provide some information about Forms of ownership of a small business in Vietnam as follows:
1. Cam such a business be 100% foreign owned?
Yes. However, we also would like to note that Vietnam Law restrict foreign ownership in several investment sector such as telecommunication services, tourism, advertisement, transportation service etc.
Furthermore, foreign investor is not allowed to make investment in several fields such as trading pharmaceutical products, rice, cement, clinke. We can advise you in detail if you could provide us information about business activities that you intend to conduct in Vietnam.
2. What are the actual costs of registering a 100% foreign owned business (real world cost including “unofficial cost” and how long does it take?
Cost and time for registering a foreign owned company in Vietnam shall very much depend on what kind of business activities that you would like to conduct in Vietnam. At this time, we can only note you that it shall take about at least 20 working days to complete registration of foreign owned company in Vietnam.
3. Are there any restrictions on the type of businesses that could be 100% foreign owned?
Please see our answer in Section 1.
4. What about an offshore Company form issues? Joint Stock Company, Company Branch in Vietnam?
It can form a subsidiary company or representative office or branch in Vietnam.
5. Tax issues?
Generally, company in Vietnam shall pay (i) Corporate Income Tax (from 20-25% profit), Value Added Tax (0-5-10%); Annual Business License Tax: about 50USD-150USD.
6. What about Bank opening account and about transfer money to Vietnam and overseas Vietnam?
Residential individual or organization in Vietnam can open bank account in Vietnam for receiving money and/or transferring money oversea. You can easily contact with commercial banks in Vietnam for opening bank account.
7. What about resident card?
Foreign Employee having been granted Work Permit, Foreign Investor having been granted Investment Certificate and their family can be granted Resident Card having validity from 1-3 years.
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