It is not easy to create a company in Viet Nam although registration procedures have been simplified by authorities. If you are not well-prepared, you cannot avoid problems when establishing and running business. Following are some basic steps to set up business in Vietnam that may help you.
Step 1: Information preparation
This step helps you reduce errors and lessen the time you spend on later registration process. There are some issues needed to consider before you set up company in Vietnam.
· Choose the type of business entity. According to the Law on Enterprises, there are four common types of business entities at present: private enterprises, joint stock companies, partnerships, limited liability companies (multi-member limited liability companies and single-member limited liability companies). This decision plays an important role in making or breaking your business ideas in practice. Therefore, try consulting experts before you make decision. The number of members (shareholders) varies according to the kind of business. Based on that number, company owners prepare notarized copies of IDs or visas.
· Choose the name for your company. The name should be short, easy to remember and pronounce. It is not allowed to resemble other companies’ names which are available. Learn more information about available companies’ names at “National business registration portal”.
In addition to type of business entity and company name, other issues you need to prepare carefully before you create a company in Viet Nam are: choosing the office place, determining authorized capital for your business, selecting a title for company’s representative in law and choosing a legal industry to register.
Step 2: Registration process
After having prepared all the information needed to set up company in Vietnam, you can initiate to compile documents in accordance with Article 20 of Government Decree No. 43/2010/ND-CP (15 April 2010) on enterprise registration. Then, submit those documents at local business registration office (Article 25 of Decree 43). Submission can be done by the representative in law or an authorized representative as long as you have a power of attorney. If your application files are approved, you will receive business registration certificate after 5 working days.
Step 3: Make a company seal
Making a company seal is one of important steps when you set up business in Vietnam. Bring a copy of business registration certificate to seal-maker agency to make a stamp for your company. Then, the stamp will be sent to local police to verify and return to your company. Remember to bring along business registration certificate (original) and ID when you come to police station to get the stamp.
Step 4: Post-registration procedures
There are still several procedures needed to complete after having business registration certificate if you want to create a company in Viet Nam successfully.
· Register tax reports not only at local tax office as the time required but also online through digital signature service in accordance with Law No. 21/2012/QH13 on amending and supplementing a number of articles of the law on tax administration.
· “Publish in the network of information on enterprises of the business registration body or a written or electronic newspaper” (Article 28 of Law on Enterprises)
· Submit reports and pay business license tax (form 01/MBAI enclosed with Circular No. 156/2013/TT-BTC dated 06 Nov 2013 of the Ministry of Finance).
· Lodge notification to apply VAT calculation methods (form 06/MBAI enclosed with Circular No. 156/2013/TT-BTC dated 06 Nov 2013 of the Ministry of Finance)
· Buy, create, self-printed invoices in accordance with Circular No. 39/2014/TT-BTC dated 01 June 2014.
If you have any questions, do not hesitate to contact our LHD Law Firm for new businesses.