8 Important Steps Guide to Establish Company in Vietnam

 8 Important Steps Guide to Establish Company in Vietnam

It is possible for foreign investors to establish company in Vietnam. Foreign investors have the right to choose the appropriate forms of enterprise such as a limited liability company, joint stock company... with particular steps including:

Step 1: Register the investment project to establish company in Vietnam

Investors submit a registration file for an investment project to the business registration office of the province, city, or management board of an industrial, export processing, or high-tech zone for approval within 15 days (without additional time for clarification).

Step 2: Apply for Certificate of investment registration

Investors can apply for a business registration certificate in Vietnam by submitting a valid record to the Department of Planning and Investment within ten days of the investment project's approval.

Step 3: Apply for the certificate of business registration

After obtaining the business registration certificate, the investor shall submit the application for enterprise registration certificate to the enterprise registration office within 3 days.

Step 4: Publish the content of the business registration

Within 30 days of receiving the certificate of enterprise registration, the investor is required to disclose the following information about the company on the national enterprise registration portal:

i, Business lines;

ii, List of founding shareholders and shareholders being foreign investors for joint-stock companies.

Step 5: Registered business stamp

The form, quantity, and contents of the company's stamp are entirely up to the business. The following information must be displayed in the stamp's content:

-Company’s name;

-Business code.

After receiving the legal entity stamp and before using the business stamp, the enterprise must send a notice on the stamp of the enterprise to the business registration office for publication in the National Information Portal on the business registration.

Step 6: Notice of use of stamp

Investors send notices on use of stamp forms to the Investment registration agency after getting a stamp. The Investment registration agency stamps samples of businesses, branches, and representative offices for businesses, publishes the business's notice on the National Business Information Portal, and issues a receipt for the business following receipt of the record.

Step 7: Open bank account

Financial backers need to open two sorts of ledgers, to be specific the speculation capital record to get the venture sum and the exchange represent going through with everyday exchange in Vietnam.

Step 8: The post licensing procedures

For the conditional business lines:

Investors investing in conditional business lines as defined in Appendix 4 of the Investment Law 2014 are required to have professional liability insurance, a certificate of business qualification, practicing certificates, and other documentation… prior to directing business in Vietnam.

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How to Establish Travel Services Business in Vietnam?

 How to Establish Travel Services Business in Vietnam?

Because passenger transportation is one of the investment areas subject to restrictions for foreign investors in Vietnam, a foreign investor can only form a joint venture with a travel agency in Vietnam to establish a travel services business there.

It is impossible to deny the significant impact that information technology has had on the travel services industry. The utilization of booking reservation framework application on cell phone and web are inescapable that make travel has never been more straightforward. The travel services market would be interesting for a foreign investor to explore. Nonetheless, 100 % foreign owned company is not allowed  to set-up travel services business in Vietnam. Due to the conditionality of this investment area, a Vietnam-based law firm should be consulted to ensure compliance with local regulations.

The application process and documents requirements to establish travel business in Vietnam are briefly

1.Required documents to establish travel business in Vietnam

-Application for the International Travel Business License (form);

-Certificate of business registration (copy – certified)

-Business plan for the international travel agency;

-Tour schedule

-Proof of at least 4 years of experience in international travel business operations

-Certified copies of the tourist guides’ cards whereby at least 3 international tourist guides are required

-Confirmation of bank deposit (as per regulations);

-Proof of offi

2. Business License Application Procedure to establish business in Vietnam

-Submitting the required documents to the appropriate authority (the province or city's Department of Culture, Sports, and Tourism).

-Within 10 working days of receiving a valid application, the province or city's Department of Tourism completes the appraisal records and sends a written request along with the agency's records to Vietnam's Ministry of Culture, Sports, and Tourism. At the point when cases are not qualified for the proposed grant to the state organizations, the commonplace the travel industry office will refer to the particular purposes behind refusal.

Within ten working days of receiving the file and written request from the state agency of tourism in the province, the international travel business must be reviewed and licensed by the state management agency of tourism (VNAT – Ministry of Culture, Sports, and Tourism). In the event of refusal, the service will express the particular motivations to the state and commonplace the travel industry specialists.

3. Number of records

-Submission to the Department of Culture, Sports and Tourism: 01

– Tourism Authority Filed in: 01

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business registering in Vietnam.

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Areas prohibited to set up company in Vietnam

 Vietnam encourages investors to set up company in Vietnam

With the public authority's endeavors in working on the venture and business climate, which is good for homegrown financial backers as well as unfamiliar financial backers, Vietnam's monetary, political and social circumstance has consistently stayed stable and accomplished extraordinary advancement, over the course of the time including the post-Coronavirus period, while laying out reciprocal exchange relations with numerous nations the world. In an effort to open up the economy, the government keeps changing its policies to support business development and improve the business environment. Specifically, the public authority resolves to energize unfamiliar financial backers carrying on with work in Vietnam: to start a business, build a factory, or buy shares in a Vietnamese company, or to invest in Vietnam in various sectors that will benefit the economy.

In general, foreign investors are permitted to establish a business and invest in Vietnam. Up until the end of 2022, the capital for Foreign Direct Investment (FDI) registered is USD 439 billion, and the FDI attracted in 2022 alone is USD 27,7 billion. In practice, a significant number of them have established businesses in Vietnam and have made substantial investments in manufacturing and production, real estate, energy, technical fields, wholesale and retail product trading, and other related industries.

Areas prohibited to set up company in Vietnam

It should be noted that the following are prohibited areas of business in Vietnam: i) dealing in illegal drugs; ii) minerals and chemicals are traded; iii) exchanging examples of plants and wild creatures; iv) the prostitution industry; v) buying and selling people, tissues, organs, human hatchlings; vi) human cloning-related business practices; vii) exchanging fireworks; viii) Businesses that provide debt collection services, including debt collection services, which were recently added to the prohibited list in the beginning of 2021 due to the negative social impact that debt collection companies in Vietnam have had.

The general requirement for both domestic and international investors is that they are permitted to engage in business investment activities in trades and industries that are not prohibited by law. The remaining trades and industries are divided into conditional and ordinary business lines, with the exception of the trades that are prohibited from business investment. In normal business lines, financial backers can openly enter without boundaries. Interestingly, contingent business lines set conditions that should be met assuming the financial backers wish to join. Understanding the lawful condition to work in a particular industry and business line is the initial step for financial backers to enter the market to set up organization in Vietnam.

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Forms of Setting up company in Vietnam

 Forms of Setting up company in Vietnam

According the Vietnam Law on Enterprises, there are four common types of companies:

-Private enterprise

-Partnership

-Joint stock company

-Limited liability company

-Private enterprise is a business run by a single person who is responsible for all of its operations and owns all of its assets;

-Partnership is an organization in which (i) at least two partners co-own the business and operate jointly under a single name; There may be limited partners in addition to general partners; ii) A partnership's general partners must be individuals who are fully responsible for the partnership's obligations with their entire property: iii) Limited partners are only responsible for the partnership's debts up to the amount of their capital contribution;

-Joint stock company is an enterprise where i) Its contract capital is partitioned into equivalent bits known as shares; ( ii) Shareholders may be individuals or organizations; the base number of investors will be three and will not be confined to a specific most extreme number; ( iii) Its shareholders are only responsible for the debts and other property obligations of the company up to the value of their capital contribution; ( iv) Shareholders will be free to transfer their shares in accordance with the law;

-Limited liability company (also known as a single-member or multi-member limited liability company). A one-member limited liability company is an enterprise which is owned by one organization or individual (hereinafter referred to as the company owner); Within the company's charter capital, the owner is responsible for the company's debts and other property obligations. A business is a limited liability company if: i) Members may be individuals or organizations; The number of members in total cannot be more than fifty; ( ii) Individuals are answerable for obligations and other property liabilities of the undertaking inside how much capital that they have resolved to add to the endeavor; ( iii) The members' capital shares can only be transferred in accordance with the law.

ANT Lawyers is a law firm in Vietnam with international standards, recognized by IFLR1000 on Financial and Corporate practice. The firm provides a wide range of legal services, including M&A, corporate establishment, business advisory, tax advisory, dispute resolution for multinational and domestic clients.

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Setting up Company in Vietnam and Comply

 Setting up Company in Vietnam and Comply: Quick Tips for Foreigners

A foreigner moving to a country like Vietnam with business opportunities is attempting to start a business and seize the opportunity. After settling in, the entrepreneur might wonder, "How difficult it is to set up company in Vietnam or how challenging the business environment in Vietnam is for operating and doing business when dealing with administrative procedures from registering investment, setting up the company, complying with periodic reporting and tax declarations?"

As a spot with an ideal topographical position and copious work assets, and developing purchaser market, Vietnam is progressively growing emphatically, turning into a nation drawing in worldwide venture among Southeast Asia nations. Foreign investors must conduct research on Vietnam's policies, investment incentives, legal requirements, and the process and procedures for establishing a business in order to carry out effective investment activities. If international investors are considering investing in Vietnam, this will provide some quick advice on the fundamental factors they should take into account.

An individual or an organization established under foreign law could register investments and conduct business activities in Vietnam. Foreign investors are permitted to participate in any legal business, but in order to register an investment, they must meet certain industry requirements. There are a few areas in Vietnam where foreign investors cannot do business due to national security concerns or the state's monopoly.

An investor who wants to start a business in Vietnam must get a certificate of investment registration from an authorization agency, according to Vietnam law. The Investment Registration Certificate (IRC) will typically be issued within 15 days of receiving a valid dossier for an investment project. Be that as it may, it means a lot to work in the ideal opportunity for setting up the legitimate records for example application, monetary report, bank balance, individual archives and large numbers of such records require apostille, or authentication and legitimization and interpretation into Vietnamese prior to being submitted.

Except for conditional investments and business lines, Vietnam law does not mandate a minimum capital requirement for starting a business. Yet, financial backers are obliged to contribute capital as per the timetable expressed in the IRC and that the public authority has the privilege to demand the financial backer to make sense of the strategy agreeable to them in light of the proposed speculation capital. In the event that the financial backer can't contribute sufficient capital as per the serious time limit, the skilled authority might apply sanctions, including denial of the IRC or the financial backer needs to change the IRC to mirror the real commitment of venture. Once having the IRC, the financial backer then solicitation to get Endeavor Enlistment Endorsement (IRC) which requires 5 days from the date of accommodation of legitimate dossier for business foundation to finish the business setting up process.

Now that the company has established itself in Vietnam, it can officially sign a lease agreement, hire staff, and engage in business transactions to purchase or sell goods or services. The documents must be signed and sealed to be legally binding.

Then the question is how to have a seal?

When an organization was managed by the Public Security authority, it was more difficult to have a seal created for it after it was established. Legislators and business experts have been discussing the possibility of completely removing the seal from legal documents in Vietnam because the signature of the legal representative is the most crucial element. The law governing the issuance of seals has become less strict over time. However, in Vietnam, the seal is still very important because it shows the official notice, such as the decision by the business's legal representative to end a labor contract, along with the signature of the representative. or on the other hand a conspicuous endorsement of a substance to an exchange it enters to enlist a development organization for building a plant. Contingent upon the terms in the organization's contract, the financial backer has the privilege to make more than one seal to utilize. Before using, altering, destroying, or altering the number of seals, the company must send a notice to the business registration office where its head office is located for publication on the National Business Registration Portal. The day the notification process is completed and the seal sample is uploaded to the National Business Registration Portal for verification, the seal can be used.

During the activity of the business in the wake of being begun, the financial backer requirements to focus on charge commitments, which is vital in many purviews besides in charge paradise nations. However, Vietnam is not included on the exemption list. Every business is required to provide a tax declaration. Consistently, the business should pay various charges and expenses, for example, permit charges (in view of enlisted sanction capital); When a company earns a profit, it must pay Corporate Income Tax (CIT); announce and cover Worth Added Expense (Tank) for sold labor and products, for individual proclaim and settle Individual Annual Duty (PIT), or at times send out assessment and import charge, charge on lands.

The investment project reporting regime must also be fully adhered to by foreign investors in accordance with the law. These reports will be issued on a regular basis (monthly, quarterly, or annually) regarding topics such as: carried out venture capital, business speculation results, data on work, utilized unfamiliar laborers, investigates natural insurance… Agreeing with the execution of expense installment commitments and intermittently answering to guarantee ideal execution as endorsed will assist the organization with staying away from superfluous dangers, for example, managerial authorizations, business suspension, punishments that could affect the business.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or doing business in Vietnam.

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7 Fundamental steps to comply with Vietnam laws and set up a business

7 Fundamental steps to comply with Vietnam laws and set up a business

In terms of business activities, Vietnam's economy is becoming more diverse, and business regulations are also constantly being improved. As a result, foreign investors are free to select the appropriate business. Therefore, when foreign investors discover business opportunities, setting up a company in Vietnam there is always a topic of great interest.

7 fundamental steps to set up a business include:

-Set up a business in Vietnam

-Publish the contents of business registration

-The enterprise conducts stamp engraving

-Open a bank account in Vietnam

-Register the tax declaration form in Vietnam

-The enterprise needs to conduct labor registration in Vietnam

-Register for social insurance in Vietnam

1.The first step is to set up a business in Vietnam

The investor must first choose the kind of business they want to start and provide the name and expected information before they can proceed with this step. Consequently, the enterprise establishment dossier will be prepared in accordance with regulations and submitted to the Department of Planning and Investment, Business Registration Office, of the location where it is anticipated to be headquartered. The company will receive a certificate of registration after submitting a valid application, and the contents of the registration will be posted on the National Business Registration Portal.

2.The second step is to publish the contents of business registration

Subsequent to being conceded an endeavor enrollment endorsement, a venture should make a public declaration on the Public Business Enlistment Entry.

3. In the third step, the enterprise conducts stamp engraving

Enterprises can demand to make a seal from the seal-making specialist. As a result, the company is solely accountable for the use of its legal entity seal and actively chooses the seal's type, quantity, form, and content.

4. Fourth step is that to open a bank account in Vietnam

At the moment, businesses have the option of choosing a bank to open an account for them. To do so, the bank needs an application form, a sample of the bank's seal, the company's charter, and a certificate. Business enlistment and related archives are expected by various bank.

5. The fifth step is to register the tax declaration form in Vietnam

As a result, businesses register to use e-invoices and notify their tax authorities of this use. Undertakings need to contact the receipt provider to arrange the printing of significant worth added receipt books and should enlist self-printed solicitations with charge specialists.

6. In the sixth step, the enterprise needs to conduct labor registration in Vietnam.

Enterprises register with the Department of Labor, War Invalids and Social Affairs to proclaim the utilization of work. The employer must fill out the required form and register with the Labor Department within thirty days of the start of business. Additionally, Enterprises should keep in mind that the labor contract and the Labor Code govern the relationship between employers and employees.

7.Seventh step is to register for social insurance in Vietnam.

Enterprises register with the Social Insurance Agency to proclaim the utilization of work. The employer must fill out the required form and register with the Social Insurance Agency within thirty days of the start of business. Additionally, businesses should keep in mind that the labor contract and the Labor Code govern the relationship between employers and employees.

It tends to be seen that setting up a business expects organizations to complete a ton of techniques and follow various guidelines of duty, banking, work, protection… Consequently, other than finding out about legitimate guidelines and organizations can look for the help of expert counseling firm in Vietnam with mastery and involvement with the field of business foundation to carry out the cycle rapidly and really.

Finding the right colleague in Vietnam is likewise significant. In order to identify potential risks when working together, we recommend conducting background checks on key personnel, gathering publicly available information about the company and individual shareholders, whether corporate or individual. Working with a dependable accomplice can assist with accomplishing monetary advantages, setting aside time and cash in business.

ANT Lawyers, a Vietnam-based law firm, may provide assistance in setting up business in Vietnam. We help clients who need legal help get certificates for investment, business registration, or other licensing procedures. 

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Ryan Reynolds Hollywood actor invests in a technology company

 Ryan Reynolds Hollywood actor invests in a technology company

Nuvei is a company that gives installment administrations to sports wagering. It recently received investment from the well-known actor and investor Ryan Reynolds.

The business has operations in approximately 50 nations and was founded in Montreal, Canada, in 2003. Customers from the crypto and gaming industries can use its payment services. Reynolds joked about the CEO's low profile in comparison to other US tech executives, but he did not specify how much he invested.

Reynolds has previously invested in Aviation Gin and Mint Mobile, a low-cost mobile phone service, among other businesses.

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