Vietnam has rapidly emerged as one of Southeast Asia’s most attractive destinations for foreign investment. With a young workforce, increasing domestic consumption, and favorable trade agreements, more entrepreneurs and companies are exploring the opportunities of doing business in Vietnam. If you’re planning to establish a business here, understanding the legal framework and procedures is essential. This guide provides a detailed step-by-step process for setting up a company in Vietnam with the support of LHD Firm, a trusted business consultancy.
Choose the Right Type of Company
The first decision to make is selecting the appropriate legal structure for your business. The most common type for foreign investors is the Limited Liability Company (LLC), which can be either a single-member LLC or a multi-member LLC. Other options include Joint Stock Companies (JSC) and representative offices. Your choice depends on your investment goals, capital structure, and the scale of your operations.
Define Your Business Scope and Activities
Before registering your business, you must clearly define your intended business activities. Vietnam has a regulated list of business sectors, and some sectors require specific licenses or government approval, especially for foreign-owned enterprises. LHD Firm can help you determine whether your planned activities fall under conditional or restricted sectors and guide you through any additional licensing requirements.
Prepare the Required Documentation
Once your business type and activities are determined, the next step is to prepare the necessary documentation for company registration. These documents typically include your company charter, a notarized copy of your copyright (for foreign individuals), proof of the business address in Vietnam, and a copyright showing your investment capital. Foreign investors may also be required to obtain an Investment Registration Certificate (IRC) before applying for an Enterprise Registration Certificate (ERC).
Apply for the Investment Registration Certificate (IRC)
Foreign investors looking to establish a company in Vietnam must obtain an IRC. This certificate outlines the details of the investment project, including the investment capital, business objectives, and location. It is issued by the Department of Planning and Investment and is a crucial step in the company setup process. LHD Firm can help streamline the application process, minimizing delays and ensuring compliance with regulations.
Apply for the Enterprise Registration Certificate (ERC)
After obtaining the IRC, you can proceed to apply for the ERC, which formally registers your company with the Vietnamese government. This certificate includes your company name, business address, legal representative details, and registered capital. Once issued, your business becomes a legal entity in Vietnam, capable of signing contracts, hiring staff, and opening bank accounts.
Open a Corporate Bank Account and Deposit Capital
With your ERC in hand, the next step is to open a corporate bank account in Vietnam. You must deposit the charter capital into this account within the time frame stated in your business registration documents. This capital will be used for the operation of the company, and proof of deposit may be requested by authorities during inspections or audits.
Register for Tax and Obtain a Company Seal
After opening a bank account, your company must register with the local tax department and obtain a tax identification number (TIN). You will also need to apply for an electronic signature for tax filing and reporting. Furthermore, creating a company seal is mandatory in Vietnam and is used for signing official documents. LHD Firm assists clients with both the tax registration process and obtaining the necessary company seals.
Comply with Post-Registration Requirements
Once your company is Set up company in Vietnam legally registered and operational, you must comply with Vietnam’s ongoing regulatory requirements. These include submitting monthly and annual tax declarations, maintaining proper accounting records, and renewing licenses as needed. LHD Firm offers ongoing support to ensure your business stays compliant with Vietnamese laws.
Conclusion
Setting up a company in Vietnam involves several legal and administrative steps, but with the right guidance, the process can be smooth and efficient. Whether you are a startup, small business, or multinational corporation, LHD Firm offers expert support throughout the entire journey—from choosing your company type to post-registration compliance. With the right partner by your side, Vietnam can be a rewarding destination for business growth and long-term success.