Can i open the company in vietnam?

Vietnam’s development has made remarkable progress for 30 years. Economic and political reforms began in 1986, which spurred rapid economic growth. At the same time, the legal and institutional framework of Vietnam has also improved significantly. That is also the reason why Vietnam has become a prominent point on investment maps of foreign consultants. So foreigners can open company in Vietnam to start business?

News: Setting Up A Foreign Owned Company In Vietnam

Yes! You can start a business in Vietnam as a foreigner, through direct or indirect investments.

Direct investment

When registering a company in Vietnam, foreigners need an investment registration certificate (IRC). The Department of Planning and Investment issues this certificate. It usually takes about a month to receive the certificate.

However, if no WTO agreements or local laws regulate foreign ownership in that business line, it will take longer to get the certificate. Your business will need ministry-level approval from one or more ministries.

After having investment registration certificate, Foreigners submit an application for registration of business establishment to the Department of Planning and Investment, apply for a enterprise registration certificate (ERC)

Indirect investment

Indirect investment, on the other hand, means Foreigners purchase shares of companies in Vietnam. Foreigners contribute capital of more than 50% .The indirect investment grants foreigners a position in company management, depending on the agreement between foreigners and the Vietnam company.

According to Clause 2, Article 26 of Investment Law 2020: “Foreign investors shall carry out procedures for registration of capital contribution, share purchase, and purchase of contributed capital portions of economic organizations before changing members or shareholders if they belong to a particular group. in the following cases:

a) The contribution of capital, purchase of shares, purchase of contributed capital increases the foreign investors’ ownership ratio in economic organizations engaged in conditional market access for foreign investors. outside;
b) The contribution of capital, purchase of shares, purchase of contributed capital results in foreign investors and economic organizations specified at Points a, b and c, Clause 1, Article 23 of this Law holding more than 50% of the capital. the charter of the economic organization in the following cases: increasing the rate of ownership of charter capital of foreign investors from less than or equal to 50% to over 50%; increase the rate of ownership of charter capital of foreign investors when foreign investors already own more than 50% of charter capital in economic organizations”.