11 May 05 KEY STEPS TO SET UP AN FDI COMPANY IN VIETNAM
Setting up a business in Vietnam, how to make it become easy and manage the potential risks? There are 05 key steps to set up FDI company in Vietnam:
01. SET UP FDI COMPANY – FIND A LAWFUL LOCATION FOR YOUR HEAD OFFICE
- Not all properties such as houses and office buildings can be used for office registration.
- There must be an official/ lawful rental contract.
TIP: there are many investors who could not apply for investment license due to improper rental contract, despite the initial fees had been paid for decoration, makeover, etc.
02. PREPARATION OF REQUIRED LEGAL PAPERS
- Make sure to have a checklist of required papers.
- Some papers from overseas should be legalized and translated.
- Some required papers are not standards and can be flexible.
- The governmental officer may value the ability of acceptance or rejection based on the submitted papers.
TIP: You should know the list and legal requirement of each paper and prepare everything right from the first time.
03. APPLY FOR THE INVESTMENT LICENSE AND ENTERPRISE REGISTRATION
- It might take months to obtain the licenses.
- Depending on your business type and method of application, you may have to obtain one or all of these licenses: Investment license,
- Business registration certificate, Business license.
- You should follow up and respond to any queries or questions from the officer.
- In necessary cases, you may be required to contact with other governmental departments for explanation and approval…
- In case the application got rejected, the applicant has to submit the revised application again!
TIP: The processing time may vary from 30 days to 6 months. Sometimes it depends on the right person and method that you seek for consultation.
04. INITIAL COMPLIANCE PROCEDURES AFTER OBTAINING THE LICENSES
- Registration for a legal stamp.
- Opening capital account, current account, pay up the capital.
- Initial tax declaration, labor declaration…
- And more than 05 other compliance tasks!
TIP: Fail to complete these tasks properly, your business could not be operated! Some investor ignored these step and had to face serious fines from the government.
05. PERIODICALLY LINE UP COMPLIANCE TASKS WITH LOCAL REGULATIONS
- Monthly, quarterly, annually tax tasks.
- Monthly, quarterly, annually labor tasks.
- Monthly, quarterly, annually for expat tasks.
- And more than 06 other compliance tasks.
TIP: Business owners should monitor the execution of compliance tasks with internal management system and internal audit procedures. Do things right from the beginning can help to avoid a long list of risks and optimize your compulsory payable amount.
Contacting a local consultant is highly recommended to set up FDI company as business owners can find one-stop solution for the above 05 steps with a reasonable cost and professional service.
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