Complete your Company Registration with IMC in Vietnam

Vietnam Company Formation

Complete your Company Registration with IMC in Vietnam

Vietnam is growing with high economic standards and has become one of the best regions to start and run a business. Moreover, Vietnam is considered the third-largest business market in all of Southeast Asia. This brings up opportunities for new businesses to drive foreign investors to expand their operations.

To succeed, the first step that you need to take is to do company registration in Vietnam. Undoubtedly, there are many legal entities, along with some extensive requirements that might be complex for an individual to handle. So, we request you to hand us over the tough job, and you focus on improving your business standards.

Vietnam is experiencing strong growth in its economies since the 1990s. Moreover, the Government has also imposed several measures to improve the business policies since then. Vietnam focuses on improving the infrastructure investment, and with the foreign investors taking an interest in investing in the businesses in Vietnam, the growth becomes quite impeccable. These are quite a few reasons for Vietnam having one of the best economic growths around Asia. The statistics tell that there was a 7% GDP rise back in the year 2019 in Vietnam. These are some of the great aspects motivating the budding business aspirants to take up their ideas and set up a business in Vietnam.

Moreover, Vietnam is also popular for an important aspect of business that is the workforce. Vietnam is known for its young, literate, hardworking, and skilled workforce. In addition to that, they are easy to train. This is one of the key aspects that helps a business owner run the operations seamlessly. People who have existing businesses across different countries are also expanding their business to Vietnam to give it global exposure. With these extravagant features, Vietnam has easy-to-follow laws and regulations related to businesses with moderate taxation aspects. Therefore, whosoever has a will to start a business and reach out to a global audience can seek company formation in Vietnam.

This article is all about giving you a detailed insight into every possible aspect that you need to know for your company formation in Vietnam. We will help you understand the taxation aspects, legal regulations, benefits, important factors, and lot more information that will help you decide on whether you want to go for company registration in Vietnam or not.

Choosing a business location is the first aspect of commencing the process of registering a business in Vietnam. There are certain important aspects that every budding entrepreneur needs to take a glance before deciding on the location.

Some of the important factors are:

  • Gain information about local competitors.
  • Get insight into the supply chain in that location.
  • Business Demographics.
  • Know the tax regulations and the state laws in the region.
  • The location needs to be less expensive or within the budget, as planned.

Considering your business type, you can look for diverse requirements and plan on selecting a location in Vietnam only after the fulfillment of all the objectives. You need to make sure that the remedy you choose is efficient and cost-effective as well. The business operations must not get hampered due to the choice of the wrong location. Moreover, you also need to look for the location that can fulfill your skilled labor requirement operations to help you commence on your work operations.

Types of Legal Business Entities for Incorporation in Vietnam

For company registration in Vietnam, there are usually two types of legal entities that are usually incorporated that are Joint Stock Company and Limited Liability Company. LLCs in Vietnam can start their business with up to 50 members who can be designated as founders or owners. Moreover, all the LLCs in Vietnam do not prefer having any shareholders. But it allows the connected members to possess capital contributions to ensure membership units that will ensure similar rights to them as shareholders.

JSC or Joint Stock Company is a considerable alternative to LLC and is also termed as a shareholding company. JSC companies can have an unlimited count of shareholders. Moreover, in either of the legal entities, there are certain local requirements for which you need the attorneys’ help to give you a clear picture of what is essential for the company formation in Vietnam and in which entity. It becomes essential to take advice from the local laws that are aware of the factors and your situation to help you make a better decision on choosing the legal entities.

Limited Liability Company (LLC)

Limited Liability Company (LLC) Entity type is quite common amongst the individuals who are planning on company formation in Vietnam. For all the medium-sized or small enterprises, LLC is an ideal identity as these companies have a simple structure to operate with only one founder. All the business aspirants who are willing to protect the personal assets must take up this entity to ensure a cost-effective remedy. In addition to that, LLC has quite simple compliance requirements that make it easy for doing business in Vietnam in 2020. Some more benefits of taking up a Limited Liability Company (LLC) entity include less paperwork, streamlined registration process, business expansion is easy with it, continuous existence, and others.

Joint Stock Company (JSC)

Joint Stock Company (JSC) is a successful entity for medium and large-sized enterprises to commence with company registration in Vietnam. Most of the companies with high requirements, turn up to JSC entity as it allows the owners to issue shares of the enterprises, and change ownership accordingly. As the Joint Stock Companies are meant mostly for large companies, there is a demand for management boards in all the enterprises that take up this entity. The large company formation in Vietnam under the JSC entity must have legal representatives with the designation of the Director and Board Chairman. The benefits of Joint Stock Company entity for doing business in Vietnam 2020 includes ownership transfer freedom, unlimited number of shareholder possibility, continued existence, and other such personal benefits.

All the LLCs and other corporations that are destined for doing business in Vietnam 2020 must know to engage or maintain a registered agent in the state. This registered agent will be taking care of processing or handling the official mails for the company.

Requirements to Set-up a Corporation or LLC in Vietnam

The company type and location remain the first requirements of starting up a company in Vietnam. But along with that, there are certain requirements that you need to follow and adapt to the company’s registration in Vietnam.

The requirements are as follows:

  • Business Name
  • Business Address that is registered
  • Business Certificate
  • Financial Documents
  • Charter Capital amount report
  • Legal Representative
  • Official Identity Proof

If you want to register yourself as an individual, you need to produce a legal bank statement that must prove your bank balance is more than the charter capital amount.

Do I Need to be a Vietnam citizen to register a company in Vietnam from India?

There is no certain biasing for individuals to start-up a business in Vietnam. Anyone can do business in Vietnam in 2020 as all the legal regulations are modified to welcome the people from India and other parts of the world to help them start up their own business in Vietnam. There are designated laws imposed in Vietnam associated with taxation rules, corporate guidelines, and business formation that are the same for every individual who is willing to start a company in Vietnam.

After Formation of a Vietnam Corporation or LLC

After the LLC or Corporation formation is done, there are certain other essential tasks that you need to complete to seamlessly run your business. Some of the tasks that you need to complete after the registration is done are:

  • Open a Vietnam bank account
  • Develop a website for your business.
  • Open merchant accounts in Vietnam for accepting credit card payments.
  • Open a business bank account.
  • Design company’s logo for promotion.
  • Get a phone number of Vietnam.

At IMS, we advise you to select the business bank account type for your new business that will handle all the inflow and cash flow from your clients and customers.

Advantages of Vietnam Company Registration

  • Vietnam has experienced strong economic growth.
  • High Inflows of FDI from different parts of the world.
  • The labor costs in Vietnam are quite less as compared to other parts of the world.
  • Enhanced brand reputation in the international markets.
  • Acquiring Visa is easy for working in Vietnam.
  • The tax rates are moderate.
  • Business establishment and better sales rates are easy to acquire in the Vietnam market.

In general, the corporate income tax rate for the organizations in Vietnam is 25%. But for the enterprises that are dealing with natural resources such as oil, gas, and others need to pay an income tax rate ranging from 32% to 50% that depends upon the project size. The Vietnamese company paying dividends to the shareholders will be free from all kinds of taxes. But for the individual shareholders, the payable tax would be 5%.

The non-resident individuals of Vietnam have to pay a flat income tax of 20%, whereas the residents are categorized under a progressive tax payment system between 5% and 35%. Back in the year 2009, all the small or medium-sized LLC entity enterprises with lesser charter capital and fewer employees received a 30% reduction on the Corporate Income Tax. There are many more reductions that are followed by certain criteria that are mentioned in the legal documents.

The residents of Vietnam follow the taxation rule imposed on worldwide income sources. The non-residents follow the taxation rule imposed only on the Vietnamese source of income. These taxes are usually imposed on the company’s profit, and the tax revenue includes product sales, service provisions, sale of assets, share transfers, and others. The standard gains tax is fixed at a corporate rate of 25%, and there is no additional capital gains tax charged to the company owners.

Do you have any plans to start up a company in Vietnam?

IMC is here with all the expert advice and consultation to help you out with it. Not only that, but we will also make sure to handle all the legal procedures for you to get your company registered in Vietnam seamlessly. Whether you choose LLC or JSC entity, we can help you form the company in either of it. Moreover, the best thing is that you do not need to visit our physical office as we take up your requests online as well. Generally, this process takes a week, and we will be there for you throughout the period with all the assistance you need.

So, if you have any plans or ideas to expand your business in Vietnam, then get in touch with us today to allow us to assist you in pursuing your passion and ambition.

Introduction

Vietnam is experiencing strong growth in its economies since the 1990s. Moreover, the Government has also imposed several measures to improve the business policies since then. Vietnam focuses on improving the infrastructure investment, and with the foreign investors taking an interest in investing in the businesses in Vietnam, the growth becomes quite impeccable. These are quite a few reasons for Vietnam having one of the best economic growths around Asia. The statistics tell that there was a 7% GDP rise back in the year 2019 in Vietnam. These are some of the great aspects motivating the budding business aspirants to take up their ideas and set up a business in Vietnam.

Moreover, Vietnam is also popular for an important aspect of business that is the workforce. Vietnam is known for its young, literate, hardworking, and skilled workforce. In addition to that, they are easy to train. This is one of the key aspects that helps a business owner run the operations seamlessly. People who have existing businesses across different countries are also expanding their business to Vietnam to give it global exposure. With these extravagant features, Vietnam has easy-to-follow laws and regulations related to businesses with moderate taxation aspects. Therefore, whosoever has a will to start a business and reach out to a global audience can seek company formation in Vietnam.

This article is all about giving you a detailed insight into every possible aspect that you need to know for your company formation in Vietnam. We will help you understand the taxation aspects, legal regulations, benefits, important factors, and lot more information that will help you decide on whether you want to go for company registration in Vietnam or not.

Doing Business in Vietnam

Choosing a business location is the first aspect of commencing the process of registering a business in Vietnam. There are certain important aspects that every budding entrepreneur needs to take a glance before deciding on the location.

Some of the important factors are:

  • Gain information about local competitors.
  • Get insight into the supply chain in that location.
  • Business Demographics.
  • Know the tax regulations and the state laws in the region.
  • The location needs to be less expensive or within the budget, as planned.

Considering your business type, you can look for diverse requirements and plan on selecting a location in Vietnam only after the fulfillment of all the objectives. You need to make sure that the remedy you choose is efficient and cost-effective as well. The business operations must not get hampered due to the choice of the wrong location. Moreover, you also need to look for the location that can fulfill your skilled labor requirement operations to help you commence on your work operations.

Types of Legal Business Entities

Types of Legal Business Entities for Incorporation in Vietnam

For company registration in Vietnam, there are usually two types of legal entities that are usually incorporated that are Joint Stock Company and Limited Liability Company. LLCs in Vietnam can start their business with up to 50 members who can be designated as founders or owners. Moreover, all the LLCs in Vietnam do not prefer having any shareholders. But it allows the connected members to possess capital contributions to ensure membership units that will ensure similar rights to them as shareholders.

JSC or Joint Stock Company is a considerable alternative to LLC and is also termed as a shareholding company. JSC companies can have an unlimited count of shareholders. Moreover, in either of the legal entities, there are certain local requirements for which you need the attorneys’ help to give you a clear picture of what is essential for the company formation in Vietnam and in which entity. It becomes essential to take advice from the local laws that are aware of the factors and your situation to help you make a better decision on choosing the legal entities.

Limited Liability Company (LLC)

Limited Liability Company (LLC) Entity type is quite common amongst the individuals who are planning on company formation in Vietnam. For all the medium-sized or small enterprises, LLC is an ideal identity as these companies have a simple structure to operate with only one founder. All the business aspirants who are willing to protect the personal assets must take up this entity to ensure a cost-effective remedy. In addition to that, LLC has quite simple compliance requirements that make it easy for doing business in Vietnam in 2020. Some more benefits of taking up a Limited Liability Company (LLC) entity include less paperwork, streamlined registration process, business expansion is easy with it, continuous existence, and others.

Joint Stock Company (JSC)

Joint Stock Company (JSC) is a successful entity for medium and large-sized enterprises to commence with company registration in Vietnam. Most of the companies with high requirements, turn up to JSC entity as it allows the owners to issue shares of the enterprises, and change ownership accordingly. As the Joint Stock Companies are meant mostly for large companies, there is a demand for management boards in all the enterprises that take up this entity. The large company formation in Vietnam under the JSC entity must have legal representatives with the designation of the Director and Board Chairman. The benefits of Joint Stock Company entity for doing business in Vietnam 2020 includes ownership transfer freedom, unlimited number of shareholder possibility, continued existence, and other such personal benefits.

Registered Agent

All the LLCs and other corporations that are destined for doing business in Vietnam 2020 must know to engage or maintain a registered agent in the state. This registered agent will be taking care of processing or handling the official mails for the company.

Requirements to Set-up a Corporation or LLC in Vietnam

The company type and location remain the first requirements of starting up a company in Vietnam. But along with that, there are certain requirements that you need to follow and adapt to the company’s registration in Vietnam.

The requirements are as follows:

  • Business Name
  • Business Address that is registered
  • Business Certificate
  • Financial Documents
  • Charter Capital amount report
  • Legal Representative
  • Official Identity Proof

If you want to register yourself as an individual, you need to produce a legal bank statement that must prove your bank balance is more than the charter capital amount.

Do I Need to be a Vietnam citizen to register a company in Vietnam from India?

There is no certain biasing for individuals to start-up a business in Vietnam. Anyone can do business in Vietnam in 2020 as all the legal regulations are modified to welcome the people from India and other parts of the world to help them start up their own business in Vietnam. There are designated laws imposed in Vietnam associated with taxation rules, corporate guidelines, and business formation that are the same for every individual who is willing to start a company in Vietnam.

After Formation of a Vietnam Corporation or LLC

After the LLC or Corporation formation is done, there are certain other essential tasks that you need to complete to seamlessly run your business. Some of the tasks that you need to complete after the registration is done are:

  • Open a Vietnam bank account
  • Develop a website for your business.
  • Open merchant accounts in Vietnam for accepting credit card payments.
  • Open a business bank account.
  • Design company’s logo for promotion.
  • Get a phone number of Vietnam.

At IMS, we advise you to select the business bank account type for your new business that will handle all the inflow and cash flow from your clients and customers.

Advantages of Vietnam Company Registration

  • Vietnam has experienced strong economic growth.
  • High Inflows of FDI from different parts of the world.
  • The labor costs in Vietnam are quite less as compared to other parts of the world.
  • Enhanced brand reputation in the international markets.
  • Acquiring Visa is easy for working in Vietnam.
  • The tax rates are moderate.
  • Business establishment and better sales rates are easy to acquire in the Vietnam market.
Corporate Tax Rate

In general, the corporate income tax rate for the organizations in Vietnam is 25%. But for the enterprises that are dealing with natural resources such as oil, gas, and others need to pay an income tax rate ranging from 32% to 50% that depends upon the project size. The Vietnamese company paying dividends to the shareholders will be free from all kinds of taxes. But for the individual shareholders, the payable tax would be 5%.

The non-resident individuals of Vietnam have to pay a flat income tax of 20%, whereas the residents are categorized under a progressive tax payment system between 5% and 35%. Back in the year 2009, all the small or medium-sized LLC entity enterprises with lesser charter capital and fewer employees received a 30% reduction on the Corporate Income Tax. There are many more reductions that are followed by certain criteria that are mentioned in the legal documents.

The residents of Vietnam follow the taxation rule imposed on worldwide income sources. The non-residents follow the taxation rule imposed only on the Vietnamese source of income. These taxes are usually imposed on the company’s profit, and the tax revenue includes product sales, service provisions, sale of assets, share transfers, and others. The standard gains tax is fixed at a corporate rate of 25%, and there is no additional capital gains tax charged to the company owners.

Do you have any plans to start up a company in Vietnam?

IMC is here with all the expert advice and consultation to help you out with it. Not only that, but we will also make sure to handle all the legal procedures for you to get your company registered in Vietnam seamlessly. Whether you choose LLC or JSC entity, we can help you form the company in either of it. Moreover, the best thing is that you do not need to visit our physical office as we take up your requests online as well. Generally, this process takes a week, and we will be there for you throughout the period with all the assistance you need.

So, if you have any plans or ideas to expand your business in Vietnam, then get in touch with us today to allow us to assist you in pursuing your passion and ambition.

Just drop your email id and contact number. We will get in touch with you.





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