- June 22, 2021
- Posted by: GBS
- Categories: Business, Legal
Vietnam has strict requirements for foreign investments, so it’s crucial to understand Vietnam subsidiary laws from front to back.
The location where you choose to base your office in Vietnam will also play a role in the Vietnam subsidiary setup process. Different regions and cities can have separate rules, costs, and availability that impact your company.
If you decide to go through the process alone instead of outsourcing, it will help to work with consultants, lawyers, and more to make sure you’re compliant.
Vietnam has three different types of business entities available to incorporate as — a corporation, branch office, or representative office.
Here’s what you need to know about the process for establishing a foreign subsidiary company in Vietnam.
Vietnam is now most preferred country by the world startup community. Foreign companies have shown interest to start operations in Vietnam and ready to enter into the world fastest growing economy and with access of the best human resource in the world. A foreign entity can invest and start a business in Vietnam subject to FDI Policy. Approximate every year, more than 200,000 companies registered in Vietnam.
- Name Reservation
- Investment Registration Certificate (IRC)
- Company Registration Certificate (CRC)
- Company’s Seal and Seal Registration Certificate
- Company’s Tax Code
Advantages of Subsidiary Company Registration
Investor and Directors of the Subsidiary Company is limited to their shares. It means that if the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of shareholders/Directors will not be at risk of being seized by banks, creditors, and government.
Continuity of Existence
The life of a business is not affected by the status of shareholders and even after the death of the shareholder, the Subsidiary Company continues to exist.
Scope of Expansion
The Scope of expansion is higher because easy to raise capital from a venture capitalist, angel investor, financial institutions and the advantage of limited liability.
Company’s brand value will get increased because employees feel secure in joining the Subsidiary Company, vendor feels secure in offering credit, investor feels secure in investing, the customer feels trust and confidence in brand in buying company product/services because of a sound corporate structure.
Valuation and Customer
The valuation is an important aspect of the company and high valuation comes from loyal customers. You should work on a business model with a higher lifetime value of a customer; Entrepreneur should focus on higher assessment of the company by offering the unique value proposition to the customer’s life.
Company Registration Process
Meet Department of Planning and Investment (DPI): GBS will help you to arrange a meeting with the DPI to be advised about documents required for the appraisal of the company or you just communicate with our lawyer via: Email: firstname.lastname@example.org of Whatsapp | Viber | Hotline: +84903189033 from anywhere in the world.
Obtain certified copies of foreign documents: GBS helps to prepare a list of required legal documents
Obtain consular legalized copies of foreign documents: Required legal documents will be legalized with simple process in your country
Obtain certified translation of documents: Required legal documents must be translated into Vietnamese
Obtain authenticated copies of passports or Vietnamese ID cards
Sign contract on office lease
2. Company incorporation
Obtain Investment Registration Certificate (IRC): GBS will draft the application form for the IRC; Charter of the Company; Outline of the Feasibility Study for the establishment of the Company and submit to the DPI, verify the status of the application and collect IRC the on your behalf
Obtain authenticated copies
Obtain Company Registration Certificate (ERC): GBS will draft the application form for the Company Registration Certificate and submit to the DPI and collect the certificate on your behalf
Make seal and notify seal specimen: GBS will support you to make to company seal and obtain notification of seal specimen publishing
Obtain certificate of tax registration.
3. Post licensing
- Open bank account with the support from GBS
- Publish in National Business Registration Portal
Documents Required (For corporate investors)
- Certificate of incorporation (an authentic copy) or certificate of business registration or equivalent documents
- Latest audited financial report (an authentic copy)
- Legalized copies of Passport from Directors and Shareholders
- For Proposed Registered Address (Residential/Commercial): Rent Agreement from Owner/Landlord
Any support you may need, contact our expert now