Fee for establishing a company in Vietnam

Streamline your business venture with competitive fees and efficient company establishment in Vietnam. With the continuous development of the market economy, many individuals aspire to establish companies, a trend that has been widely embraced in recent years. In this article, Viet An Law will summarize the fee for establishing a company in Vietnam. Unlock growth opportunities by leveraging our expertise in navigating the Vietnamese company formation process with transparent, cost-effective solutions.

Legal basis

• Circular 47/2019/TT-BTC stipulating the collection rate, mode of collection, payment, and management of fees for providing business information business registration fees, as amended and supplemented by Circular 74/2022/TT-BTC;
• Decree 139/2016/ND-CP on occupation fees, as amended and supplemented by Decree 22/2020/ND-CP and Decree 126/2020/ND-CP.

Fee for business registration

A certificate of enterprise registration (ERC) is a paper or electronic document recording information about business registration issued by the business registration agency to enterprises. An enterprise is granted an enterprise registration certificate upon fulfilling all the requirements prescribed by applicable laws.

According to Vietnamese law, the founders must register the business when establishing a company. Specifically, the business registration fee for issuing, reissuing, and changing the content of the ERC and the Certificate of Registration of Operation of Branches, Representative Offices, and Business Locations of an enterprise is VND 50,000/time. If an enterprise registers its business online, this fee will be waived.

Fee for publication of business registration contents

According to article 32 of the Law on Enterprise 2020, after an enterprise is granted the certificate of enterprise registration, it shall announce it on the National Enterprise Registration Portal and pay the fee as prescribed by law. Within 30 days from the date of publication, businesses must publish the business registration content on the National Information Portal.

According to Decree 01/2021/ND-CP businesses must pay business registration fees at the time of submitting documents to establish a company.

According to regulations in Circular 47/2019/TT-BTC, the business establishment registration fee is 100,000 VND/time.

Cost of engraving business seal

An enterprise seal is a special means enterprises use to stamp on their documents and papers. The seal reflects the legal status and affirms the legal value of the documents and papers on which it is stamped. The company’s transactions must be stamped to take effect, otherwise, they will be considered invalid.

According to Article 43 of the Law on Enterprise 2020 and implementation guidance documents, the enterprise shall decide the type, quantity, design, and content of its seal and the seals of its branches, representative offices, and other units.

Registering a seal is an important step in establishing a company. The fee for registering a seal is from 300,000 VND to 500,000 VND depending on the type of seal and the number of seals that need to be registered.

Fee for purchasing digital signature

A digital signature is information attached to data, which can be in the form of text, images, or videos, to identify the owner of the data. Digital signatures are an indispensable part of electronic invoices and authenticate that the electronic invoice is issued by which unit.

Cost depends on the provider and the number of years of service. Digital signatures with 03 years of use range from 2,000,000 VND to 3,000,000 VND.

Electronic invoices for enterprises

Electronic invoices are a common phrase for businesses today. Electronic invoices are a set of electronic data messages about the sale of goods and the provision of services, which are created, established, received, stored, and managed by electronic means. Electronic invoices are created, processed on the computer system of an organization that has been granted a tax code when selling goods, and services, and stored on the computers of the parties by the provisions of the law on electronic transactions.

From October 19^th, 2020, the Government issued Decree 123/2020/ND-CP, according to which, from July 1^st, 2023, when establishing a business, it is mandatory to use electronic invoices.

The cost of purchasing electronic invoice software ranges from 2,000,000 VND to 3,000,000 VND depending on the supplier.

Open a bank account and submit a bank account notification

Bank accounts play a crucial role in facilitating transactions between businesses, banks, and partners. Currently, almost all Tax Departments require businesses to pay taxes via electronic tax payment to minimize administrative procedure overload. While there is no legal mandate for businesses to open bank accounts, it remains an essential step for businesses.

Businesses must open a bank account for transactions and to pay taxes according to current mandatory regulations. The minimum balance requirements for maintaining a bank account vary depending on the chosen bank and the currency of the account (VND or USD). In general, businesses need to ensure the account balance is at least 1,000,000 VND ( for VND accounts) and from 50 to 100 USD (for USD accounts).

Licensing fee

A license fee (or license tax) is an amount of money that must be paid annually or when starting production or business based on the charter capital stated in the business registration certificate/investment capital stated in the certificate. Investment registration certificate (for organizations) or annual revenue (for business households and individuals).

In addition, according to Article 3 of Decree 139/2016/ND-CP on licensing fees, there are some cases of license fee exemption for newly established enterprises or small and medium-sized enterprises transitioning from household businesses. These exemptions include:

License fee exemption for the first year of establishment or commencement of production/business activities (from January 1 to December 31) for:

• Newly established organizations (issued with new tax codes and enterprise codes).
• During the exemption period, if an organization, household, individual, or group of individuals establishes branches, representative offices, or business locations, these branches, representative offices, and business locations are also exempt from the fee for the same period as the organization, household, individual, or group of individuals.
• Small and medium-sized enterprises converting from business households are exempt from license tax for 3 years from the date of issuance of the enterprise registration certificate.

Licensing fees for organizations involved in the production and business of goods and services include:

• The organizations with charter capital and investment capital over 10 billion dongs: 3,000,000 VND/year;
• The organizations with charter capital and investment capital under 10 billion dongs: 2,000,000 VND/year;
• The branches, representative offices, business locations, public service providers, and other business organizations: 1,000,000 VND/year.

The licensing fee rates for the organizations specified above are based on the charter capital written in the certificate of business registration or on the investment capital written in the certificate of investment registration in case there is no charter capital.

List of company establishment fees in 2024

Company establishment process

Step 1: Submit the business establishment documents to the Department of Planning and Investment

Step 2: Publish business information content

Step 3: Engrave the business seal

Step 4: Apply for relevant business licenses

Step 5: Post-establishment procedures.

Some new businesses established in 2024

• Truong Thanh Industrial Trading Production Joint Stock Company. Tax code: 3703221417
• Nam A Real Estate Investment and Trading Company Limited. Tax code: 3703220928
• Mta Catholic Scholarship Social Enterprise Company Limited. Tax code: 0318540737
• Giving Tree Consultant Vietnam Company Limited. Tax code: 0318540832
• Clapton Whale Company Limited. Tax code: 0202248109
• CVT Group Joint Stock Company. Tax code: 0110768468
• Ji-Mi Import Export Company Limited. Tax code: 0110768450
• Pda Agency Company Limited. Tax code: 0110768531
• Ebay Vietnam Company Limited. Tax code: 0110768355

Company establishment services of Viet An Law Firm

Clients will receive the following deliverables according to the legal service contract packages. The specific deliverable for each client will depend on the work agreement between the two parties. These are the common deliverables that clients receive after using the company establishment service at Viet An Law Firm:

• Certificate of business registration, which is also the tax code;
• Round company seal;
• Internal business records;
• Company charter;
• Instructions on post-establishment procedure: opening a bank account, ordering invoices; consulting on registration of digital signatures for online tax filing;
• Instructions on tax declaration procedures; submitting tax declarations, paying taxes, paying social insurance;
• Post-establishment services: bank account, tax file setup tax method registration, initial tax declaration, ordering VAT invoices;
• Support for tax declaration during operation;
• Full-package tax accounting services;
• Consulting on website development; logo, trademark registration, patent registration, business sub-licenses, and conditions to ensure business operations after business establishment.

This is the company establishment fee in 2024. If clients have any questions or require assistance with establishing a company in Vietnam, please do not hesitate to contact Viet An Law Film!