To start a business you will need to open a company in Vietnam and in some types of business you will also need a license. According to Vietnamese laws, any foreign citizen or legal entity has the right to be founder and member of the company.
The main types of companies in Vietnam
LLC is the most common type of company opened by foreigners. Great for small businesses such as a bar, restaurant, hotel or travel agency.
JSC is suitable for both small and large businesses.
The main differences between AO and LLC:
- The number of participants is minimum 3, maximum is unlimited (in LLC by practice 5)
- Easy sale of shares. 3 years after the opening of the joint-stock company you do not need the consent of other participants to sell the share (sale in the LLC is possible with the unanimous consent of all participants)
- Additional raising of capital is simpler, since the joint-stock company issues shares on borrowed funds (the share in the company is usually distributed in the company or through collateral instruments)
- The authorized capital is much higher than in the LLC, at the time of writing this article is from $ 50,000
How to open an LLC in Vietnam. Practice.
Consider in practice the opening of a company. Foreign participation in the LLC can be from 1 to 100%. The larger the share, the larger the authorized capital must be shown and the company opening is more expensive:
- 1-49% – registered capital of $ 10,000, opening cost – $ 800
- 49-99% – registered capital of $ 15,000, opening cost – $ 1,100
- 100% – registered capital of $ 35,000, opening cost – $ 1,500
Which option to choose depends on you as important not only money but also in the possible influence of the local founder on the affairs of the company. By law if a participant’s share is more than 10%, he has the right to vote!
In practice, no one ever sees the local partner alive. Director is a foreign participant and only he have a stamp and the right to sign documents.
The opening procedure is very simple, but slightly delayed.
- It is necessary to come up with the name and place of registration (office)
An office is usually the place where you plan to do business (rented place for a cafe, for example). If you don’t such place, we can provide a temporary office with subsequent re-registration.
- Find a local partner if the share of foreign participation is less than 100%
Not everyone has a trustee in Vietnam among the locals. So we can help find such a person. The cost of their services is usually ~ $ 250
- Open an account with a local bank and deposit the amount corresponding to the share in the authorized capital
If you haven’t this amount then you can borrow it for 5% for the time of registration!
- We wait about 1.5 months and get the stamp and a company certificate.
The next step is to issue a resident card or working visas for employees, and you can safely make money.