Foreign direct investment (FDI) enterprise means an organization whose members or shareholders are foreign investors, established and operating in accordance with Vietnam’s laws that carry out business investment activities. Foreign investor means an individual holding a foreign nationality or an organization established under foreign laws and carrying out business investment activities in Vietnam.
Vietnam Top Business Opportunities: Vietnam has been developing strongly after joining the World Trade Organization since 2007, has already signed 12 bilateral and multilateral Free Trade Agreements, thanks to the expansion of relations and reform policies.
Local business compliance procedures: Investors in Vietnam can grab more business opportunities in Vietnamese market thanks to the current political and economic context in Vietnam. Properly managing the required local compliance procedures according to local laws and regulations will help to avoid the risks and also enhance your business advantage.
VIVA can support you identify the allowed cash-flows for a foreign investment company in Vietnam and required compliances for the important transactions such as: Oversea bank account of investors | Local investment bank account | Local current – payment bank accounts…
FORMS OF BUSINESS – INVESTMENT CASH-FLOWS – REQUIRED COMPLIANCES
The most common form of legal entities in Vietnam are:
- Limited liability company
- Joint stock company
- Incorporated partnership
- Representative office
The list of required business licenses that a foreign invested company shall be granted:
- Investment registration certificate (for foreign investors to invest in Vietnam directly).
- Enterprise registration certificate (for doing business in line with local business laws).
- Business license (for trading activities).
- Registration website for providing e-commerce service
- Other permits depending on the actual operation (Regarding environmental, fire protection, conditional industries).
The lawful cash-flows that foreign investors shall keep in mind:
- Oversea bank account of investors
- Local investment bank account
- Local current – payment bank accounts
- Capital contribution
- Loans
- Allowed transactions and required compliances
- Withdraw profits
REQUIRED COMPLIANCE PROCEDURES
- Manage required business records
- Manage employment relations
- Manage taxation
- Accounting – auditing
- Acquiring and selling
- Transformation
- Transferring shares
Read more:
- Internal audit plan
- Business records management
- Doing business in Vietnam – register a company
- Managing the required compliances for a company in Vietnam
- Enter Vietnam during the covid period – who can grant the entry visa
- Limited liability company (p1) – multi-member limited liability company
- Limited liability company (p2) – single-member limited liability company
- Capital contribution for establishment a company – what you need to know
- Account for payment, withdrawals capital of foreigners who invest directly in Vietnam – what you need to know
- Requirements for taking foreign loans applied to FDI companies – foreign loans subject to registration with the state bank
