The integrated economy is increasingly developing, leading to many foreign companies establishing companies in Vietnam. However, establishing a company profile is very complicated and costly. To answer questions from clients, Viet An Law provides an article about the fee for set up a foreign company in Vietnam below.
Pursuant to the Investment Law, a company with foreign investment capital is a company established by a foreign investor to carry out investment activities in Vietnam or a Vietnamese company whose shares are purchased by a foreign investor.
Current law stipulates that economic organizations with 100% capital of foreign investors or joint venture economic organizations between domestic investors and foreign investors establish foreign invested companies under types of limited liability companies, joint stock companies, and partnerships according to the provisions of the Enterprise Law.
In addition to the provisions of law that apply generally, in accordance with international commitments to which Vietnam is a member and to facilitate investment management, laws on enterprises and investment apply specifically. For foreign investment in conditional investment fields, regulations in establishing joint stock companies and private enterprises, investment procedures, investment project dossiers and locations of registration procedure.
Pursuant to Article 32 of Decree 01/2021/ND-CP, companies must pay registration fees at the time of submitting company establishment documents. According to Circular 47/2019/TT-BTC, the fees and charges companies must pay include:
This is the initial fee that must be paid at the time of submitting the company registration application and is paid directly to the Business Registration Office (where the business registration application is submitted).
Note: In case of registering to establish a business online, client will not need to pay the business establishment registration fee, but only need to pay the fee for publishing the business registration content.
In addition, the company will have to pay license fees every year after its establishment. License fees are based on the company’s charter capital and are divided into the following two levels:
Procedures for establishing a company with foreign investment from 1% to 100% of capital contributed by foreign investors immediately upon establishment are carried out according to the following steps:
Step 1: Prepare documents for the Investment Registration Certificate
Step 2: Submit an application for the Investment Registration Certificate
Step 3: Issue Investment Registration Certificate
Within 15 days from the date of receiving complete documents, the investment registration agency shall issue an Investment Registration Certificate. In case of refusal, the investor must be notified in writing and clearly state the reason.
Step 4: Prepare documents and submit an application for Business Registration Certificate
Step 5: Publish the content of the business registration information
Step 6: Engrave the company seal
Step 7: Issue a business license or operating license
Step 8: Open a foreign direct investment capital account
Step 9: The foreign invested company carries out the following procedures for establishing the company.
Step 1: Establish a company with Vietnamese capital
Foreign investors can only contribute capital to buy shares when there is a Vietnamese company. In case the company establishment procedures have not yet been completed, the Vietnamese partner must proceed with establishing a company with 100% Vietnamese capital.
Step 2: Prepare documents to register to purchase capital contributions and shares from foreign investors.
Step 3: Submit an application to register to purchase capital contributions and shares from foreign investors.
Step 4: Foreign investors contribute capital, buy shares, capital contributions, and Vietnamese enterprises.
Step 5: Change the Enterprise Registration Certificate.
Step 6: Issue the Business License as required.
Foreigners directly investing in establishing foreign invested companies in Vietnam need to prepare:
The advantages of procedures for foreign investors to contribute capital and purchase shares in Vietnamese companies compared to establishing a foreign invested company where foreign investors contribute capital from the beginning are as follows:
Clients who need advice on the fee for set up a foreign company in Vietnam, please contact Viet An Company for the best support.
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