07 Oct WEBINAR EUROCHAM | INVESTMENT IN VIETNAM: MARKET ENTRY PROCEDURES(Last Updated On: December 4, 2021)
FORMS OF ENTERPRISES
The three most common forms of legal entities in Vietnam are:
- Limited liability company
- Joint-stock company
- Incorporated partnership
Other forms of business in Vietnam are:
- Foreign representative office
- Foreign branch office
- Business Cooperation Contract
- 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).
TAXES AND INCENTIVES
- Value-added tax
- Corporate income tax
- Personal income tax
- Foreign Contractor Tax
- Capital Assignment Profits Tax
- Natural Resources Tax
- Property Taxes
- Environment Protection Tax
- Import and Export Duties
- Social, Health and Unemployment Insurance Contributions
- Tax Audits and Penalties
- Other Taxes
TAX ITEMS RATES REMARK CIT standard 20% Tax incentives for some special industries:
exempt in 04 first years and 5% in next 9 years
VAT / 0% Export goods / services / Software businesses / 5% Essential goods / services / 10% All other goods / services PIT Tax Resident
May - 35 50% discount in economic zone Compulsory insurances On Employer 21,5% On the actual or standard salary Compulsory insurances On Employee 10,5% On the actual or standard salary Special Sales Tax / 0 - 75 Cigarettes/beer/karaoke/casinos.. etc. Social Security / 10.5 / 22 Employee / Employer Incomes from capital investment / 5% Profits from capital contributions to limited liability companies (including
single member limited liability companies)
Incomes from Transferring contributed capital / 20% According to the whole income tax table. Capital transfer earned by a non
/ 0.10% On the total amount of money, the non
resident receives from the transfer
of capital invested in organizations and individuals in Vietnam, whether the
transfer is made in Vietnam or overseas.
Business License Tax (VND) ≦ 2 billion 1 million Based on registered capital / year 2-5 billion 1.5 million 5-10 billion 2 million ≧ 10 billion 3 million
REQUIRED PAPERS FOR COMPANY REGISTRATION
There are a list of legal requirements:
- List of members, ID Cards/ Passports of the members who are individuals, incorporation certificate of members who are entities
- Bank balance certificate/ confirmation for financial ability
- Name of company in Vietnam (English, Vietnamese, Abbreviations)
- Lawful leasing contract of the office in Vietnam
- Business segment, forms of enterprises
- Passports of the chairman, experience profiles of the Investors or Board of Directors in regard to the business segment
- General process of business operation in Vietnam, including key activities, market, labor, asset, revenue,…
- Investment capital, percentage of shares of the members, certificates of bank account balance of the members
- Choose a suitable form of company, register your expected brand name.
- Allowed business scopes, HS codes, Tax incentives.
- Lawful Headquarter location and rental agreements.
- Required papers and info for business establishment.
- Expenses prior to establishment.
- Total budget and estimated timelines.
COMPANY REGISTRATION PROCEDURES
- Register for investment project at Department of Planning and Investment
- Register for establishment of enterprise at Department of Planning and Investment
- Register for business license in Ecommerce at Department of Industry and Trade
INITIAL SETTING UP PROCEDURES
- Taxation: Conduct procedures for the initial tax registration – Registering and conducting procedures for VAT Invoice
- Customs: Conduct procedures for the initial customs registration.
- Registering and conducting procedures for electronic declaration.
- Publishing the announcement of enterprise establishment in central or local newspapers
- Registering to carve seal at the Public Security Service
- Opening capital account, payment bank account and registration for tax procedures. Supporting for paying up capital procedures
- Capital contribution according in the ERC and IRC
- Investment in Vietnam: Market entry procedures
- Investment in Vietnam: Restructuring – Acquiring and Selling a company
- Investment in Vietnam: New Laws and Regulations
- Investment in Vietnam: Managing the required compliances for a company
- Investment in Vietnam: Managing the required compliances for an foreign employee