Establishment of Vietnam Company
Establishment of Vietnam Company
Advantages of Establishing a Company in Vietnam
- Tax Incentives: Foreigners establishing companies in Vietnam can enjoy lower corporate income tax rates, with some industries even eligible for tax exemptions or reductions. (Note: As of 2024, the effective tax rate for large multinational corporations is increasing to 15%. Please refer to the latest regulations for details.)
- Emerging Market: Vietnam is considered a Southeast Asian emerging market with a rapidly growing economy and a large consumer market, offering significant business opportunities.
- Access to Regional Markets: Vietnam’s location in Southeast Asia makes it an ideal springboard for accessing the entire regional market and facilitates trade and collaboration with other countries.
- Diverse Business Structures: Foreign investors can choose from various business structures, such as 100% foreign-owned companies or joint ventures, offering flexibility based on their needs.
- Abundant Human Resources: Vietnam possesses a large young and educated workforce, allowing companies to easily find suitable talent to support business development.
- Cost-Effectiveness: Compared to other Asian countries, Vietnam’s labor costs are relatively low, helping reduce business operating costs.
Our Services
- Company Registration Fees
- Company Name Check (Vietnamese translation required)
- Application for Investment Registration Certificate (IRC)
- Application for Enterprise Registration Certificate (ERC)
- Agent Fees and First-Year Government License Fees
- Company Seal Production
- Initial Accounting Policy Registration
- Digital Signature Setup
- Electronic Tax Invoice Registration
- Bank Account Opening (International Banks)
Requirements for Establishing a Company in Vietnam
- At least one shareholder/legal representative
- At least one local director; more than one director is allowed, with no nationality restrictions.
- 100% foreign ownership is permitted.
- Registered address required.
- Registered capital (recommended): $500,000 USD
Required Documents
- Articles of Association
- 3-5 proposed company names (English)
- Passports of shareholders/legal representatives and directors
- Notarized copies of the investor’s business registration certificate and registration certificate
- Bank reference letter from the investor’s bank (account balance)
- Financial audit reports for the last two years / last year’s financial audit report
- Address of the investor’s factory or trading headquarters in Vietnam (lease agreement, notarized by a local Vietnamese notary office)
Vietnam Tax Rates
Corporate Income Tax:
The general tax rate is 20% for foreign invested enterprises, domestic enterprises, branches of foreign enterprises, and foreign contractors not governed by the Foreign Investment Law. The preferential tax rate is 17%.
Value Added Tax (VAT):
VAT rates are 5% and 8% (standard rate) depending on the type of goods and services. Export of processed manufactured products and services is VAT-exempt.
Stamp Duty:
- Capital less than 20 billion VND (approximately $100,000 USD): 1 million VND (approximately $50 USD)
- Registered capital between 20-50 billion VND (approximately $100,000- $250,000 USD): 1.5 million VND (approximately $75 USD)
- Capital between 50-100 billion VND (approximately $250,000-$500,000 USD): 2 million VND (approximately $100 USD)
- Capital over 100 billion VND (approximately $500,000 USD): 3 million VND (approximately $150 USD)
Newly established businesses that complete tax registration and obtain a tax ID in the first half of the year will be taxed on the full year’s stamp duty; those obtaining it in the second half will pay 50%.
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