Establishment of a 100% Canadian-owned company in Vietnam

Investment cooperation between Vietnam and Canada is opening up extremely bright prospects. With the entry into force of the CPTPP Agreement, the two countries have created a solid foundation to strengthen trade and investment exchanges. Canada, with its modern industry and advanced technology, especially in the fields of clean energy and information technology, offers attractive cooperation opportunities for Vietnam. Meanwhile, Vietnam, with its abundant human resources, large consumer market and investment opening policy, promises to be an attractive investment destination for Canadian businesses. The combination of the strengths of the two sides will create many opportunities for win-win cooperation, contributing to promoting economic growth and sustainable development for both countries. Viet An Law would like to guide you through the procedures for establishing a 100% Canadian-owned company in Vietnam through the article below.

The impact of the CPTPP Agreement on the establishment of a 100% Canadian-owned company in Vietnam

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has created a new wave for foreign investors, including Canada, who want to invest in Vietnam. In particular, the establishment of a 100% foreign-owned company in Vietnam has become more favorable.

Positive impacts of CPTPP in Vietnam

• Attractive investment environment:
  • Removing barriers: The CPTPP has eliminated most tariff and non-tariff barriers, facilitating the circulation of goods, services, and investments among member countries.
  • Investment protection: This agreement provides a solid legal framework to protect the interests of foreign investors, minimizing investment risks.
  • Market expansion: Vietnam is a large and rapidly growing market, and the CPTPP makes it easier for Canadian businesses to access this market.
• Simple administrative procedures:
  • Administrative procedure reform: To take advantage of the opportunity from the CPTPP, Vietnam has stepped up administrative procedure reform, creating favorable conditions for foreign investors, including Canada, including the establishment of companies.
  • Fast application processing time: Company establishment procedures have been shortened, the application processing time has been significantly shortened.
• Support from the government:
  • Preferential policies: The Vietnamese government has issued many attractive investment incentives to attract foreign investors, especially high-tech enterprises and invest in priority sectors.
  • Information support: State agencies have strengthened the provision of information and advice to investors on the investment environment, administrative procedures and support policies.

Opportunities for Canadian businesses

• Access to high-quality labor: Vietnam has a young, dynamic workforce and competitive labor costs.
• Global supply chain development: Canadian businesses can leverage Vietnam as a manufacturing and export hub to serve the Asian market.
• Participation in key industries: Vietnam is focusing on developing industries such as processing, assembly, electronics, and automobiles, and Canadian businesses can participate in these industries.

The process of establishing a 100% Canadian-owned company in Vietnam

Step 1: Apply for an investment certificate;

Step 2: Register to establish a 100% Canadian-owned company in Vietnam;

Step 3: Proceed to engrave the legal entity’s seal when it has a tax identification number;

Step 4: Open an investment capital account and contribute capital;

Step 5: After completing the capital contribution procedure, business activities can be carried out. Note that it may be necessary to apply for sub-licenses for conditional business investment lines

Apply for an investment certificate to establish a 100% Canadian-owned company in Vietnam

Dossier of application for an investment certificate

• Written request for implementation of the investment project;
• An investment project proposal includes the following contents: the investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, investment schedule, labor demand, proposal for investment incentives, impact assessment, etc socio-economic efficiency of the project;
• Dossier proving the company’s head office: Lease contract, Notarized copy of real estate documents of the lessor: Land use right certificate, Construction permit; if the lessor is a company: It is necessary to provide a copy of the enterprise registration certificate with the function of real estate business;
• Confirmation of account balance corresponding to the capital intended to establish an FDI company is consular legalized and notarized

Depending on whether the investor is an individual or a legal entity, it will be necessary to provide the following additional documents:

Place of application: Department of Planning and Investment where the head office is expected to be located.

Processing order: Within 15 days from the date of receipt of a complete and valid dossier, the Department of Planning and Investment will issue an Investment Registration Certificate to the foreign investor. In case of refusal, the Department of Planning and Investment will reply in writing and clearly state the reason.

Registration of establishment of a 100% Canadian-owned company in Vietnam

Application for a Canadian-owned enterprise registration certificate

• Application for enterprise registration;
• Charter of the enterprise;
• List of members of a limited liability company with two or more members or a list of general partners;
• A notarized copy of the identity card or valid passport of the individual member; a notarized copy of the enterprise registration certificate of the member being an organization; a notarized copy of the valid identity card or passport of the legal representative of that organization;
• The Canadian Investor’s Investment Registration Certificate has been completed above.

Place of application: Department of Planning and Investment where the enterprise is headquartered.

Duration: 03 – 06 working days.

Engraving the legal entity seal after having a tax identification number

After the business has a tax identification number, engraving the legal entity seal is an important step to complete the establishment procedure. The legal entity seal is an official identification sign of the business, used in transactions and legal documents.

Open an account with 100% Canadian investment capital in Vietnam and contribute capital

Preparation of dossiers for opening investment capital accounts includes:

• Enterprise establishment license or investment registration certificate.
• Investor’s identity document (passport, visa).
• Documents proving the legal origin of the investment capital.

Place to apply: Submit the application at the selected bank.

The bank will conduct the appraisal of the dossier and open an investment capital account for the investor.

After having an investment capital account, the company with Thai capital contributed capital. Note that enterprises need to fully contribute the registered capital within 90 days from the date of issuance of the business registration certificate.

• Money transfer: Investors transfer money from an overseas account to an investment capital account opened in Vietnam.
• Confirmation: The bank will confirm the transfer of capital contribution.

If you need to support the procedures for Canadian investors to establish a company with 100% investment capital in Vietnam, please contact Viet An Law for the fastest and most detailed support!