Question: We are a fellow corporate service provider from Hongkong. We have a client from Hongkong who is looking to setup a business in Vietnam.
They’re a shopping mall operator (Like WeWork, they lease from landlord, and sublease to tenants).
Is incorporation and the respective compliance be something you and your team could assist in please?
Appreciate if you could share the setup procedures and a fee quote for reference.
Answer: I am Lawyer of SB Law. I was entrusted to advise you for setting up a foreign invested company in Vietnam.
According to the current practice on mall operator service in Vietnam now, there are two structures:
+ Structure 1: Mall operator shall lease premises from the landlord. Then, mall operator shall sublease space to tenants for retailed sale activities (for example, Parkson Vietnam or IPPG).
+ Structure 2: Mail operator shall act as a retailer. Tenants shall act as wholesalers. Tenants shall carry out sale activities in the stores inside the premises.
However, mail operator shall invoice directly to customers.
On the return, tenants shall issue a wholesale invoice to the Mall Operator. The rental payable to Mall Operator shall be the discount amount that the tenants offers to the Mall Operator (for example, Aeon Mall).
Please let us know which structure is suitable for your Client and in which city your Client will setup the company?