Condition to set up an import export company in Vietnam

Export and import are terms used to describe goods and services that are exchanged and traded between countries. Import and export is an important economic sector, contributing to the development of each country. Thanks to import and export, the process of supply and demand of goods and services in domestic and foreign markets in terms of quantity, quality, and time is improved. Therefore, Viet An Law provides regulations on the condition to set up an import export company in Vietnam via the following article.

Legal basis

• Law on Enterprise 2020;
• Decree 01/2021/ND-CPon business registration;
• Decree 69/2018/ND-CP guiding the Law on Foreign Trade Management.
• Circular 01/2021/TT-BKHDT guiding on business registration, amended and supplemented by Circular 02/2023/TT-BKHDT;

What is the import export business in Vietnam?

Import and export activities, also known as foreign trade, are economic activity that reflects the exchange of domestic goods and services and foreign goods and services across national borders. The main goal of import and export is to create a bridge between supply and demand trade between domestic and foreign markets.

The conditions for Import and export activities to arise, exist, and develop are the existence of commodity currency economic relations the existence of countries and territories, and the ability to link economically and integrate into the regional and international economy. Specifically, the concepts of export and import of goods are specified in Article 28 of the Commercial Law 2005 as follows:

• Exporting goods is when goods are taken out of Vietnamese territory or brought into a special area located in Vietnamese territory that is considered a separate customs area according to the provisions of law.
• Import of goods means goods brought into Vietnamese territory from foreign countries or from special areas located in Vietnamese territory that are considered separate customs areas according to the provisions of law.

Import and export business is a business that provides export and import services of goods and services. Import and export business has been and is a profession that brings many economic benefits and turnover and it represents the strength of national economies. In the context of global trade, in Vietnam, this industry is increasingly asserting its position and requires strict regulations in business registration and establishment of companies providing Import and export services.

The right to do import and export business under Vietnamese law

Article 7 of the Enterprise Law 2020 stipulates that import and export business is one of the rights of businesses, and this right is more specific in Article 3 of Decree 69/2018/ND-CP regulating the right to freedom of import export business. Accordingly, Vietnamese traders who are not economic organizations with foreign investment capital are allowed to do export and import business regardless of the business registration industry, except for goods on the list of prohibited or temporarily suspended exports and imports according to the provisions of law.

For economic organizations with foreign investment capital, branches of foreign traders in Vietnam, when conducting export and import activities, must implement Vietnam’s commitments in international treaties that Vietnam is a member country, the list of goods and roadmap are announced by the Ministry of Industry and Trade.

The condition to set up an import export company in Vietnam

Regarding subjects

Firstly, traders establishing Import and export companies are business individuals, households, or cooperatives that must have a Business Registration Certification.

Secondly, traders establishing foreign-invested Import and export companies and branches of foreign traders in Vietnam when conducting export and import activities must comply with Vietnam’s commitments in international treaties to which Vietnam is a member, List of goods and roadmap announced by the Ministry of Industry and Trade.

Import and export goods

The import and export goods that the company wants to register are not on the list of goods banned from export or import; the list of goods temporarily suspended from import and export; the list of goods that do not have the right to import or export in international treaties to which Vietnam is a member.

Regarding exported and imported goods on the list of exported and imported goods under license, according to the conditions in Appendix III of the Decree 69/2018/ND-CP, a license must be issued by a competent authority along with the enterprise establishment registration dossier according to the provisions of Clause 1, Article 4 of this Decree.

Regarding goods subject to quarantine, ensuring quality standards and food safety, they must be inspected and approved by competent authorities before import and export;

Regarding capital

In the case of establishing an Import and export company, the law does not set conditions on the minimum charter capital to ensure the company is established. Therefore, the amount of capital to establish a goods Import and export company is The quality of services depends entirely on the individual trader or business.

However, some industries have regulations on deposit capital as well as legal capital (for example, security, film production, and insurance…), and the minimum amount of charter capital must be equal to. In addition, the charter capital of Import and export companies is not tied to other types of capital.

Some other conditions

Some other conditions such as the company name comply with the general principles when establishing a company as prescribed in Articles 37, Article 38, Article 39, Article 40, Article 41 of the Enterprise Law 2020. Additionally, to comply with the above regulations, businesses should avoid naming their Import and export company in the following cases:

• Do not name the same or cause confusion with the name of a previously registered enterprise within the territory of Vietnam;
• Do not use words or symbols that violate the historical, cultural, ethical traditions and fine customs of the nation;
• Do not use phrases from state agencies to name your company.

In addition, the conditions for the headquarters of the Import and export company must also comply with Article 42 of the Enterprise Law 2020 and Article 6 of the Housing Law 2014:

• The head office of an Import and export company must be located on the territory of Vietnam, be the contact address of the enterprise, and be determined according to the administrative unit boundaries; include phone number, fax number, and email (if any).
• The address must clearly identify the house number, corner, alley, lane, and street or be a village, hamlet, commune, ward, town, district, town, provincial city, or province;
• Do not locate the company headquarters at an apartment or group house address.

Above is the necessary information related to the current regulations on condition to set up an import export company in Vietnam. If you have any difficulties during the procedures to establish an Import and export company, please contact Viet An Law Firm for detailed advice!