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How to Set Up an FDI Company in Vietnam: A Step-by-Step Guide

How to Set Up an FDI Company in Vietnam: A Step-by-Step Guide

FDI Company in Vietnam

Vietnam is a popular destination for foreign investors looking to set up an FDI company. With a growing economy, favorable business environment, and low labor costs, Vietnam offers many opportunities for foreign businesses. However, setting up an FDI company in Vietnam can be a complex and time-consuming process. In this article, we’ll provide you with a step-by-step guide to setting up an FDI company in Vietnam.

Choose Your Investment Sector

The first step to setting up an FDI company in Vietnam is to choose the sector you want to invest in. Vietnam has many investment sectors that are open to foreign investors, including manufacturing, real estate, and services. You should research the sector you’re interested in and identify any restrictions or regulations that may apply.

Choose Your Business Structure

Once you’ve chosen your investment sector, you need to decide on the business structure for your FDI company. Foreign investors in Vietnam can choose from several business structures, including a single or multi-member limited liability company, joint stock company, partnership, joint venture, branch, or representative office of a foreign entity which is compliant with legislative requirements and conditions provided in Decree No. 07/2016 on guiding incorporation of branches and representative office of a foreign entity in Vietnam. You should consult with a local legal advisor to determine the best structure for your business.

Obtain an Investment Registration Certificate

Foreign investors in Vietnam are required to obtain an investment registration certificate from the competent relevant government authority. The process for obtaining the investment registration certificate can be time-consuming and entail you must provide certain further supporting documents required to legalize and then translate to Vietnam accordingly for a set of documents as required by officials and legislation, and you may need to provide detailed information about your business plan and financial projections. Not only the said things but you can also be required to explain some contents contained in the documents having been submitted to the competent relevant government authority.

In addition, for certain uncommitted business lines, it is likely the official shall be in consultancy with Vietnam’s relevant authorities before approval of your investment application. You should work with a local advisor to ensure that your investment registration certificate application is complete and accurate.

Register Your Business by Obtaining an Enterprise Registration Certificate

Once you’ve obtained your investment registration certificate, you need to register your business with the relevant government agencies for incorporation of an FDI company and will be granted an enterprise registration certificate for your business. This includes registering for tax and social insurance purposes, as well as obtaining any necessary business licenses (sub-licenses). Also, you need to make a corporate seal for doing business in Vietnam and will employ its local or foreign employees to work and assist you in your company’s daily business activities. You should work with a local advisor to ensure that your business registration is complete and compliant with local regulations.

Open Bank Accounts

To operate your FDI company in Vietnam, you need to open bank accounts in the country which can be a DICA account or an IICA account. You should choose a legally licensed reputable commercial bank with a strong presence in Vietnam, and ensure that your bank accounts are compliant with local regulations. You should also consider using online banking services to streamline your financial operations.

In conclusion, setting up an FDI company in Vietnam can be a complex and time-consuming process, but with the right approach and the help of local advisors, foreign investors can succeed in this dynamic and growing market.

Let you have further information, please contact us at www.ivlf-lawyer.com or finnnguyen@ivlf-lawyer.com

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(1) Comment

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