Fee to set up a company in Vietnam

Company establishment costs are the fees that company founders must pay to the state according to regulations and related costs to obtain an Enterprise Registration Certificate and complete company establishment procedures. These costs may be changed according to legal regulations at each time of promulgation. In the following article, Viet An Law will summarize regulations related to the fee to set up a company in Vietnam according to current regulations.

Legal basis

• Law on Investment 2020.
• Law on Enterprise 2020.
• Decree 01/2021/ND-CP on business registration.
• Circular 47/2019/TT-BTC regulates the rates, collection, payment, management, and use of fees for providing business information and business registration fees.

Forms of company establishment

According to the provisions of enterprise law, a newly established company can exist in the following forms:

• Joint stock company;
• Limited liability company (single-member or multiple-member);
• Partnerships;
• Private enterprise;

Fee to set up a company in Vietnam

Business registration fees are paid at the Department of Planning and Investment

• According to the provisions of Article 32 of 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.
• Form: Business founders pay fees directly using electronic payment service.
• Note: In case of registering to establish a business online, the business registering to establish a company will be exempted business establishment registration fee, accordingly, businesses only need to pay the fee for announcing the business registration content according to the regulations below.

Fee for publication of business registration contents

According to the provisions of the Law on Enterprise 2020, within 30 days, businesses must publish the business registration content on the National Business Information Portal.

The fee for announcing business registration content according to Circular 47/2019/TT-BTC is 100,000 VND.

Cost of engraving business seal

Currently, depending on each unit, there are different prices. The cost depends on the unit providing the seal engraving service and the type of seal required by the business. The price for a company round stamp ranges from 200,000 VND to 300,000 VND. Seal the title of Director, Chairman…. from 70,000 VND to 150,000 VND.

Cost of making company signs

Depending on the sign-making unit, there are different prices. On the market, prices fluctuate from 300,000 VND to 1,500,000 VND depending on the material and size of the sign.

Fee for purchasing digital signature (Token)

A digital signature is an encrypted USB format used instead of the signature and seal of the legal representative to sign declarations or other online operations to identify all operations as belonging to the business. Businesses contact digital signature providers such as Viettel, Vina, and Vinca… to purchase a Digital Signature device.

Cost depends on the provider and the number of years of service. Digital signatures with 03 years of use range from 1,500,000 VND to 2,000,000 VND.

Open a bank account and submit a bank account notification

Businesses must open a bank account for transactions and to pay taxes according to current mandatory regulations. The account opening procedure is free of charge. However, businesses need to ensure the account balance is at least 1,000,000 VND.

Declare and pay license fees

License fees are based on the company’s charter capital and divided into the following two levels:

• Charter capital from less than 10 billion, license fee is 2,000,000 VND/year.
• Charter capital is over 10 billion, license fee is 3,000,000 VND/year.

In addition, based on the time of company establishment, the tax payable by year is determined as follows:

• Businesses established in the first 6 months of the year: Pay the license fee for the whole year.
• Enterprises established in the last 6 months of the year (Established from July 1 to December 31) must pay 50% of the annual license fee for the first year (year of establishment).
• If the company has different business license dates and operating dates, please note that the license tax rate is calculated from the license date. Therefore, company have to pay attention and calculate accurately to pay the correct fee and tax collection time during the year.

Note:

• According to the provisions of Decree 22/2020/ND-CP amending and supplementing several articles of Decree 139/2016/ND-CP, enterprises in the first year of establishment are exempt from annual license fees in the first year of establishment.
• Under Article 16 of the Law on Support for Small and Medium Enterprises, 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.

Issuing electronic invoices – Value-added invoices

The electronic invoice is an invoice expressed in the form of electronic data created by organizations and individuals selling goods or providing services, recording information about selling goods and providing services, digitally and electronically signing according to regulations, including cases where invoices are created from a cash register with an electronic data transfer connection to the tax authority.

Dossier for setting up a company in Vietnam

Under the provisions of the Vietnam Enterprise Law guided by Decree 01/2021/ND-CP, documents to establish different types of companies include the following general documents:

• Application for business registration.
• Draft of the Company’s charter.
• List of shareholders/members;
• Copies of legal status documents of the individual/organization establishing the company, legal representative, authorized representative of founding shareholders (Copies of legal documents must be consular legalization);
• Investment registration certificate (if any).
• Power of Attorney for Viet An Law to carry out procedures (in case of using Viet An Law’s company establishment service).
• Other documents are specified according to each type of company and each special case.

Company establishment process

Step 1: Submit the business establishment documents

The owner applies to the Department of Planning and Investment where the business is headquartered.

Processing time: 03 working days. If the application is complete and valid, a business registration certificate will be issued according to regulations. In case of refusal, the business registration agency will clearly state the reason in the written response sent to the tax service enterprise.

Result: Enterprise registration certificate.

Step 2: Publish business information content

After being granted an Enterprise Registration Certificate, an enterprise must make a public announcement on the National Business Registration Portal within 30 days from the date of publication and must pay fees according to the provisions of law.

Step 3: Engrave the business seal

Enterprises decide on their seal and sign samples and manage them according to internal regulations.

Step 4: Apply for relevant business licenses

Step 5: Post-establishment procedures

Newly established businesses must make a company sign, open a bank account, declare license tax, buy digital signatures, and issue value-added invoices.

These are the post-establishment services that Viet An Law provides and businesses need to pay attention to fully implementing them before conducting business activities to meet the provisions of law. Viet An Law provides a consulting and support package for establishing a company that includes all of the above procedures and also provides services associated with business activities such as tax declaration, branding consulting, and consulting on company legal activities.

Customers who want to learn or need legal advice related to company establishment or company establishment costs, please contact Viet An Law Firm for the most specific instructions.