We are looking for the company formation agent in Vietnam. Would you be so kind to send us your list of services and prices.
Question: And describe, please, in general, the procedure of VIETNAM company incorporation, can it be non-resident Director and Shareholder in one physical person? and any other useful information for us, especially terms of such incorporation.
Answer: General introduction about forming foreign invested company in Vietnam:
Under Vietnam Law, a foreign investor can setup a Foreign Invested Company (FIC) for making profit by either of (i) forming a wholly foreign invested company or (ii) joint venture company with at least a local partner. For setting up a FIC, foreign investor must obtain (i) Investment Registration Certificate which takes about 20 working days to complete and (ii) Certificate of Business Registration which takes about 05 working days to complete. We also would like to note that for some conditional industries like banking, tourism, education etc.. the licensing process may be longer and/or foreign ownership ratio in FIC can be limited.
Question: Perhaps you would be good enough to send us full details of your nominee services, if you have such? and company prolongation services: prices and terms.
If you have your own presentations, or business schemes of using VIETNAM business companies for the foreign investor, please send them to us, we will appreciate it so much.
Answer: Legal Representative/Director: Director or Legal Representative of company in Vietnam can be either of Foreigner or Local person. In case a Foreigner is appointed as an unique legal representative of the FIC, he/she must resides in Vietnam.
In such case, he/she must obtain work permit and temporary residence permit to stay in Vietnam.
Question: Can our client, the citizen of foreign investor, be the Director and Shareholder?
Answer: A foreign Citizen can be also Director and Shareholder of a company in Vietnam.
Question: What is the timing approximately for establishing LLC company? Opening bank account in Vietnam?
Answer: About 25 working days, except that the company involves with conditional business sectors.
For opening bank account, it shall take you about 15-30 minutes after completing setting up company.
Question: What is the fastest and safest procedure of incorporation of the company in your opinion?
Answer: Setting up an IT Company shall be fastest and safest.
Question: What will be the taxes?
Answer: A Company in Vietnam shall pay (i) Corporate Income Tax: 20% of profit; (ii) Value Added Tax: 0-10% of value of goods or service consumed; (iii) Business License Tax:50-150USD/01 year depending on scale of registered capital. Other tax can be imposed depending on specific operation of the company such as Import Tax; Export Tax, Special Consumption Tax etc.
Question: The withdrawal of money abroad for the contract for the provision of services of advertising – possible or not?
Answer: Yes, it is possible for withdrawing money for paying services or goods abroad. However, you should note that whenever you withdraw or transfer money from account of the company, you must present invoice, contract to prove the transparency of the transaction.
Question: Stop countries of future Bank account? If any?
Answer: No. It depends on policy and networking of each specific banks. For example, some banks got difficulty when their clients wish to make transaction with companies in Myanmar etc due to that their network abroad faced with ban.
Question: Selling products for human consumption – shell we need licenses and permits?
Answer: No, it is contained in the Investment Registration Certificate and Business Registration Certificate. However, some special goods such as cosmetic, functional foods etc shall need special license.
Question: When importing goods – does the client need a special permition?
Answer: It depends on what kind of goods to be imported. If the goods requests for license, you shall need to obtain license before the import.
Question: What determines VAT? How to get rid of it (VAT=0%)?
Answer: Type of goods and services shall determine your VAT. For example, VAT rate of 10% applicable for almost goods and services. However, VAT rate of 5% applicable for IP services and 0% applicable for exported goods and services. VAT of 0% is applicable for goods and services consumed outside Vietnam’s Territory.
Question: Social security tax – what is considered? from wages?
Answer: Yes, this rate shall be based on wage.
