Client: Dear Sir/Madam,
Very nice to meet you, actually we are planning to start a new business line on selling lubricant in Vietnam, and we have an affiliate in HCMC, 90% under foreign company, and 10% under VN local company.
would like to seek your kind advices on my below pln and and see if you can help us to get the related business license to run the new business line:
My Plan:
1 To build up a new business line (selling lubricant) in existing company which 90% under foreign company & 10% under local company; with local director and teams in HCMC
2 or to open and setup a local company in Vietnam, 100% foreign investment company from Hongkong to start the new business line
3 Doing the Vietnam local distribution business for lubricant product
4 Lubricant product import from other countries like Singapore, Malaysia, Taiwan, Indonesia
5 Our target customer would be like factory, car workshops, spare part shop
6 The investment capital would be from our mother company in Hongkong
7 The lubricant HS code would be 27101961
8 To get the business license for doing the VN local distribution / retail for selling lubricant
Consultation Inquiry:
1 For the business license application, can the existing company setup able to apply the related business for the new business line that I mentioned above?
2 or can I open a new company in Vietnam, with 100% foreign investment company from Singapore, also able to get the business license
3 The estimated charge for getting the required VN lisence to run the business
4 Do I need to hire VN local people for importing the lubricant, like settling the custom (why I ask this question is because I heard that for some special products, they need local people to incharge)
5 with your experience, pls kindly advise all the related information that I need to take note, for example the tax rate, the employee rate, the import tax, whether lubricant is dangerous good or normal good (in HK it is normal goods), company open procedure, bank open procedure…etc
6 Will your firm able to do some basic market research like the total number of car vehicle in Vietnam, the key industrial area with the industry plant company list…etc
Lawyer: This is reference to your email below. I am Lawyer of SBLaw. I was entrusted to provide legal advice regarding to this matter below.
Regarding to your question, please find our answer as follows:
1 For the business license application, can the existing company setup able to apply the related business for the new business line that I mentioned above?
No. Vietnam Law does not allow Foreign Investor to involve with importation and distribution of lubricant products.
2 or can I open a new company in Vietnam, with 100% foreign investment company from Hongkong, also able to get the business license
No. Vietnam Law does not allow Foreign Investor to involve with importation and distribution of lubricant products. However, we can advise you an alternative option for this. Our fee for such advice is 1,000USD. The fee is exclusive of 10% VAT
3 The estimated charge for getting the required VN lisence to run the business
N/A
4 Do I need to hire VN local people for importing the lubricant, like settling the custom (why I ask this question is because I heard that for some special products, they need local people to incharge)
N/A
5 with your experience, pls kindly advise all the related information that I need to take note, for example the tax rate, the employee rate, the import tax, whether lubricant is dangerous good or normal good (in HK it is normal goods), company open procedure, bank open procedure…etc
N/A
6 Will your firm able to do some basic market research like the total number of car vehicle in Vietnam, the key industrial area with the industry plant company list…etc
We do not provide market research service.
