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How To Form A Limited Liability Company In Vietnam A Beginner 39;s Guide (view source)
Revision as of 11:11, 22 December 2020
, 11:11, 22 December 2020Created page with "<br><br><br> For an investor setting up a limited liability company in Vietnam for the first time, it is likely they will need a guide on the company incorporation procedure...."
<br><br><br> For an investor setting up a limited liability company in Vietnam for the first time, it is likely they will need a guide on the company incorporation procedure. We at Mahan can assist you in the entire incorporation process. We offer a #1 Stop service which takes care of everything from pre-incorporation consultancy to getting the company fully compliant and operational. If all the necessary documents and details are prepared well in advance the company licenses can be obtained in 25 working days. <br>What is a Limited Liability Company? A limited liability company (LLC) is an entity which is limited by its equity. The equity holders are not liable for its debts and losses beyond their amount of equity/capital contribution. In simple terms it is a separate legal entity from its equity holders. A LLC in Vietnam is recognized as a taxable entity in its own right. The key requirements to register a buiness in Vietnam are as follows: At least one equity holder (individual or corporate entity) Initial paid-up share capital (no minimum set amount) A physical Vietnam office address Documentary Requirements for business registration in Vietnam.<br> So, the considerations and documents you will need for incorporation of an entity in Vietnam are: <br><br><br>(adsbygoogle = window.adsbygoogle || []).push();<br>Company name<br> Choosing this cleverly is important for brand-building. Try to include your business activities in the name itself for this purpose. It's also advisable to check whether your chosen name matches an available domain name, as a suitable web address is must for increasing business these days. Whether to go for .vn, .com, .org or [https://www.kynghidongduong.vn/tours/tour-du-lich-ha-noi-bac-kan-ho-ba-be-cao-bang-hang-pac-bo-thac-ban-gioc.html tour hồ ba bể] any other extensions will depend on your target market. <br>Description of business activities<br> Use the Vietnam Standard Industrial Classification Code (VISC) to select the business activities your entity will be engaging in. <br>Shareholding pattern<br> When a Vietnam company is formed, [https://www.kynghidongduong.vn/tours/tour-du-lich-ha-noi-bac-kan-ho-ba-be-cao-bang-hang-pac-bo-thac-ban-gioc.html kynghidongduong.vn] it must have at least one capital contributing member who will have 100% equity. At a later stage, this equity holder may dilute their equity by bringing in other members. <br><br> In Vietnam, an investor is free to register a business with whatever investment capital they choose. The investment law does not prescribe a set minimum capital. The normal practice however is to register a capital not less than USD 10,000. The reason for this is that the minimum costs to operate a company with an office and one staff for one year will work out to around this amount. <br><br> An investor cannot arbitrarily increase or decrease the investment capital of a company post registration. This is because the DPI records the investment capital is in the investment registration certificate of the company. If the investor wishes to increase the investment capital of the company, they must an application with the DPI. After the DPI reviews this they will issue a new investment certificate with the [http://search.ft.com/search?queryText=revised revised] capital. <br>Company charter<br> It's very important to have a equity holders constitute a charter. This is essential so that going forward there are no disputes. The charter defines the relationship between equity holders and specifies their respective rights and obligations. A foreign investor setting up a joint venture should always pay attention to the charter of the company. This is especially important if the other joint venture partners are local entities. The best way to go about this is to draft a charter in advance and get all stakeholders approval. The main reason for doing this is to protect the interests and have "controlling rights" of the company if the foreign investor is the main brain behind the idea. <br>Details of Equity holders<br> The main condition for an investor to form a LLC company is that the entity must have at least one corporate or individual equity holding member. A director and equity holder can be the same or different person. An foreign investor can hold 100% equity. To form a company in Vietnam a local partner is not essential. The Investment law of 2014 allows a maximum of 50 shareholders for a LLC company in Vietnam. <br>Details of directors<br> The company must have at least one director who may or many not be a resident of Vietnam i.e. Vietnam citizen. This is the main advantage of setting up a company in Vietnam. In other words the investor may or may not choose to partner with a local entity. <br>Registered address<br> An investor, local or foreign choosing to incorporate a company in Vietnam must have an office address. All official correspondences are send to this address. The registered address must be a physical address. Virtual office addresses can also be used to register a company as long as all the necessary paperwork is available. <br>Foreign invested businesses are not permitted to use residential addresses for company registration. Once a company is successfully incorporated, the following documents are issued: Company business profile<br> The DPI issues an email confirming the incorporation of the company. It includes the company's registration number typically called Ma So Thuy in Vietnamese (MST). The MST is the government issued code to all entities operating in Vietnam. An investor can also see their company information online here. <br>Incorporation Certification/ Investment registration certificate<br> On successful registration of a company in Vietnam, the DPI issues a hard copy of the certificate of incorporation. This is a 3 page document which outlines the sectors in which investments is permitted. <br>Business registration certificate<br> A business registration certificate is a single page yellow color document which provides details of the constitution of the company. It contains all the relevant information of the investor and the legal representatives of the company. <br><br><br>(adsbygoogle = window.adsbygoogle || []).push();<br>Bank account opening resolution<br> A LLC is a separate legal entity from its directors and equity holders; therefore it will needs its own bank account. Thus, a resolution by the board of directors of the company sanctioning the opening of the account and specifying the signatories to the account is required. <br>Additionally, you may need the following to run a business in Vietnam: Company stamp<br> The company stamp/ seal is a legal requirement for business entities in Vietnam.l, a company stamp is another important item because it affirms the credibility of a company i.e It makes company documents official. <br>Particulars of the Chief Accountant<br> Unlike Singapore, a company in Vietnam does not need to appoint a company secretary. Alternatively, the company must appoint a chief accountant. The investor must do this at the earliest or latest within 6 months of incorporation. He or she must have the prerequisite domain knowledge and is responsible for ensuring all regulatory compliance. Most companies in Vietnam outsource the mandatory company secretary requirement to company incorporation specialists like Mahan. <br><br><br><br><br><br><br><br>About Mahan Consulting Company Ltd Mahan company Ltd is a Vietnam-based registered provider of corporate & trading services. The team at Mahan comprises of 40+ people who have particular expertise in legal, finance, accounting, taxation, consumer goods trading and strategic planning. Mahan is committed to giving foreign investors the local advantage along with the support needed to help them make informed decisions. We are an enabling resource by focused towards doubling the investment capital and generating wealth for foreign investors. INFORMATION Mahan Company Ltd (Registraiton No. 0312447844) 85 Hoang Sa, Da Kao Ward, [https://www.kynghidongduong.vn/tours/tour-du-lich-ha-noi-bac-kan-ho-ba-be-cao-bang-hang-pac-bo-thac-ban-gioc.html tour hồ ba bể] District 1, HCMC, Vietnam [mailto:contact@mahan-vn.com contact@mahan-vn.com] +84 - (0)964666061 [ (adsbygoogle = window.adsbygoogle || []).push();]
