The Best Business Structures for Foreign Investors in Vietnam

  • February 7, 2025
  • Posted by: GBS
  • Categories: GBS, Legal
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Vietnam has become a prime destination for foreign investment, thanks to its robust economy, strategic location, and favorable business environment. However, choosing the right business structure is crucial for success. As a foreign investor, you can establish a 100% foreign-owned company or a joint venture (JV) with a local partner. Understanding the most suitable legal structure for your business will ensure compliance and operational efficiency.

Key Business Structures for Foreign Investors in Vietnam

1. Joint Stock Company (JSC) – For Large-Scale and Complex Business Operations

A Joint Stock Company (JSC) is an ideal structure for foreign investors requiring a more complex corporate framework. This structure allows for a minimum of three shareholders and can be 100% foreign-owned or structured as a joint venture (JV) with local partners.

Key Features:

  • Minimum of three shareholders (foreign or local)
  • Suitable for businesses seeking to issue shares and attract investors
  • Requires a Management Board to oversee operations
  • Setup time: Less than 8 weeks

2. Limited Liability Company (LLC) – The Most Popular Choice for Foreign Investors

A Limited Liability Company (LLC) is the most common and flexible business structure for foreign investors in Vietnam. It allows for a single owner or multiple owners and can be 100% foreign-owned or established as a joint venture (JV).

Key Features:

  • Can be formed by one or more foreign investors
  • Simple governance structure, requiring only a Legal Representative
  • Ideal for businesses looking for full control with fewer regulatory requirements
  • Setup time: Less than 8 weeks

3. Representative Office (RO) – For Market Research & Business Expansion

A Representative Office (RO) is best suited for foreign companies looking to explore the Vietnamese market without engaging in direct business activities. While an RO cannot conduct commercial transactions, it is a great option for conducting market research, liaison activities, and business promotion.

Key Features:

  • 100% owned by the parent company (no shareholders or partners required)
  • Cannot engage in profit-generating activities in Vietnam
  • Requires the appointment of a Chief Representative
  • Setup time: 4 to 6 weeks

How GBS Can Help You Register Your Business in Vietnam

Navigating Vietnam’s business registration process can be complex and time-consuming without expert guidance. GBS provides tailored solutions to simplify your market entry, ensuring compliance with local regulations and a seamless setup process.

  • Expert Advisory: Our experienced consultants guide you through government requirements, making the registration process smooth and stress-free.
  • Fast & Efficient Processing: We tailor our services to meet your specific needs, ensuring quick turnaround times.
  • Transparent Pricing: No hidden fees—just a clear, detailed quote outlining all costs upfront.

Get Started Today!

Call: +84 903 189 033
Email: sophie@gbs.com.vn

Whether you are a startup or an established business looking to expand into Vietnam, GBS is here to help you choose the best structure and get your business up and running smoothly.