How to Register a Private Limited Company in Vietnam?

Judging on the impressive GDP growth, Vietnam is progressing at an exponential rate. The economic growth is stable after the 1997 financial crisis in Asia during. Now the growth has gone to 7% in 2017 and expected to rise even more during the coming years. This forecast opportunities for foreign investors and potential entrepreneur to establish their business.

Like most of other Asian countries, Vietnam also follows four different office formation. They are:

• Limited Liability Company (LLC)
• Joint-Stock Company
• Representative office
• Branch office

If you are an investor, you need to select one of these formation before registering a company. Here we will focus on the procedures needed to register for a Private Limited Company or LLC in Vietnam.

Before explaining the procedure, here are three facts about LLC in Vietnam:

• Private limited company needs at least a single founder
•  Private Limited Company do not have capability to issue shares. The particular company also cannot enlist in stock exchange.
• Corporate structure kept in simple form due to limited company operations

Let’s hop into the requirements needed for registering Private Limited Company in Vietnam.

1.      To start an LLC, make sure at least a single founder is available. The owner count goes up to 50 for such company. Keep in mind that Vietnam Private limited company policy does not allow shareholders.

2.      Determine business sectors such as manufacturing or trading. S & F consulting farm can consult you more about other LLC sectors available in Vietnam.

3.      Register the company by collecting an IRC (Investment Registration Certificate). You can collect the certificate from the Department of Planning and Investment.

4.      One you have the certificate in hand, collect Business Registration Certificate (BRC). It takes approximately one to two weeks to get this certificate.

5.      Next is to register for the taxation process. You need to pay an amount of $90/ year as a tax against your business license. You will get a duration of thirty days after collecting the BRC to register for the tax process.

6.      Once the taxation process is over, proceed for other paperwork. For instance, manufacturing company need to produce license for store and premises facilities. You need to arrange MOU and statement agreements. Surveyor from Department of Planning and Investment will investigate proper usage of premises.

7.      At this point you will need to show your capital required for the new company.

8.      One more stage need an inclusion, if it is a manufacturing business. You need product license to confirm its authenticity during manufacturing.

FAQ

Q- Can LLC comply with Stock Exchange?

A- No they cannot allow shareholders or attach with Stock Exchange.

Q- How many days required to collect BRC in Vietnam?

A- It generally takes 1 to 2 weeks.

Q- What paperwork needed for registering company physical address?

A- A Memorandum of Understanding (MOU), and a statement of agreement letter.