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Establish a company in Vietnam providing e-commerce trading platform services

Conditions for establishing a foreign-invested company providing e-commerce trading platform services

Nowadays, with the development of society, of the technological revolution in which exchanging, buying and selling, finding out all information of goods and services is very easy with one “click” through websites providing e-commerce services created by merchants business in those goods and services. Update with development trends in business, exchange, purchase, and sale, supply of goods and services, foreign investors are tending to invest in creating e-commerce service websites, specialist is an E-commerce Trading Platform. Foreign investors who want to establish a company providing e-commerce trading platform services in Vietnam must satisfy investment conditions under Vietnamese law.

Legal basis

  • WTO commitments;
  • Law on Investment 2020;
  • Decree No. 31/2021/ND-CP guiding the Law on Investment
  • Decree 52/2013/ND-CP on E-commerce and relevant guiding documents, as amended and supplemented by Decree 08/2018/ND-CP and Decree 85/2021/ND-CP;
  • Decree No. 09/2018/ND-CP guiding the Commercial Law on goods trading activities and activities directly related to the purchase and sale of goods of foreign-invested enterprises in Vietnam.

Investment conditions of foreign investors in the field of service provision of the e-commerce trading platform

The e-commerce service means a commercial activity whereby an e-commerce service provider establishes an e-commerce website to provide an environment for other traders, organizations, and individuals to conduct the commercial promotion, sale of goods, or provision of services.

An e-commerce trading platform is an e-commerce website that allows traders, organizations, and individuals who are not website owners to conduct part or the whole process of buying and selling goods and services on it.

At the table of commitments when Vietnam joined the WTO, it did not commit to providing services for e-commerce trading platforms.

However, e-commerce services are commercial activities with conditions under the provisions of the Law on Investment 2014.

Business conditions for e-commerce trading platforms are detailed in Decree No. 52/2013/ND-CP and Decree No. 09/2018/ND-CP.

Conditions on the ownership rate of the charter capital of foreign investors in economic organizations

Foreign investors are allowed to establish companies providing e-commerce trading platforms with 100% foreign investment capital.

Conditions in the form of investment

Foreign investors invest and business in online video game services can be carried out in the following forms:

  • Establishing a 100% foreign-invested economic organization;
  • Establishment of a joint venture economic organization with foreign investment capital and Vietnamese investment capital.
  • Forms of contributing the capital, purchase of shares, or capital contribution into a Vietnamese economic organization;

Conditions for business licenses according to specialized laws

After being granted an Investment Registration Certificate and an Enterprise Registration Certificate, a foreign investor business services who performs to be issued a business license in accordance with Decree No. 09/2018/ND-CP and register for establishing an e-commerce trading platform website according to the provisions of Decree No. 52/2013/ND-CP and relevant guiding and amendment documents.

  • Issuance of business license for e-commerce services: E-commerce trading platform at the Department of Industry and Trade.

Investors must satisfy the following conditions for granting an e-commerce service business license:

  • Satisfy conditions on the market access in international treaties to which Vietnam is a member;
  • Having a financial plan to carry out the activities requested for a business license;
  • No more overdue tax debt in case it has been established in Vietnam for 01 year or more.

The investor must make a report explaining the above conditions and the business plan: Description of content and method of conducting business activities; present business and market development plans; demand on labor; assess the impact and socio-economic efficiency of the business plan; Financial plan: Report on business results on the basis of audited financial statements of the latest year in case it has been established in Vietnam for 01 year or more; explanation of capital, capital sources and capital mobilization plans; enclosed with financial documents;

  • Register to set up a website providing an e-commerce trading platform with the E-commerce Department of the Ministry of Industry and Trade.

Investors interested in registering to set up a website to provide an e-commerce trading platform can refer to our article related to the E-commerce trading platform.

Above are some conditions and attention that foreign investors establishing companies in providing services of e-commerce trading platforms need to pay attention to learn and implement.

Customers wishing to learn the laws and regulations related to the establishment of a foreign-invested company providing e-commerce trading floor services in Vietnam as well as issues related to foreign investment and enterprise in Vietnam, please contact Viet An Law Firm for more details!

Establish a company in Vietnam providing e-commerce trading platform services by Viet An Law Firm services

  • Consulting the capital contribution ratio of foreign investors in Vietnam;
  • Consulting on choosing the right type of a company for investors: limited liability company or joint stock company, head office address, capital, business lines, opening a capital transfer account, timeline for contributing the capital;
  • Consulting on conditions, guiding investors to prepare necessary documents to establish a foreign-invested company;
  • Consulting, and drafting the dossier of establishing companies for investors;
  • Representing investors to work with Vietnamese competent state agencies in the process of establishing enterprises for investors (Apply for Investment Registration Certificate, Enterprise Registration Certificate, make the legal entity seal, seal sample announcement, procedures after the company establishment, tax and accounting consulting services, transfer profits abroad, labor – insurance, issues related to intellectual property rights…;
  • Comprehensive consulting on activities arising in the process of performing business in Vietnam for investors.

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