Set up a company in Vietnam for translation service

Translation activities play an important role in connecting information, promoting trade, and supporting civil and commercial transactions in the context of international integration. Therefore, more and more individuals and organizations wish to establish enterprises operating in this field to meet the increasing demand for translation. However, for a translation company to be legally recognized and operate lawfully, the business entity must comply with strict conditions regarding business lines, personnel, and professional responsibilities. With experience in consulting in the corporate field, through this article, Viet An Law will fully analyze and update the conditions to set up a company in Vietnam for translation service. The article helps clients clearly understand the legal basis and prepare dossiers correctly before going into operation.

Market access conditions for foreign investors

Translation and interpretation services (CPC 879) are currently not committed in Vietnam’s Schedule of Specific Commitments in Services within the WTO framework. However, within the framework of CPTPP commitments, Vietnam currently does not place any restrictions on this service group, so it can be understood that foreign investors from CPTPP member countries can access the translation business market in Vietnam.

However, the procedure for applying for an Investment Registration Certificate will require steps to seek opinions from relevant ministries and branches. In addition, foreign investors need to meet business conditions similar to domestic investors, especially conditions regarding translation personnel.

Conditions to set up a company in Vietnam for translation service

The translation service business is a business line without conditions under the Law on Investment 2020; however, to set up a company in Vietnam for translation service, the following requirements must still be met:

Standards and conditions of the translator

According to the provisions of Article 27 of Decree 23/2015/ND-CP, the translator needs to meet the following conditions:

• Having full civil act capacity according to the provisions of law.
• Degree conditions: have a bachelor’s degree in foreign language or higher or a university graduation degree or higher in a foreign language that needs to be translated.
• For uncommon languages where the translator does not have a bachelor’s degree in foreign language or university graduation degree as prescribed in this Clause, they must be fluent in the language to be translated. Common languages are understood as languages displayed on many papers and documents used in Vietnam, and many Vietnamese people can translate this language into Vietnamese or vice versa. Example: English, French, German, Russian, Chinese, Korean, Japanese, Spanish.

According to the guidance of Circular 01/2020/TT-BTP, an example of this regulation can be taken as follows:

Example: Mr. X has a Master’s degree in International Law in China, the study program is in Chinese, so Mr. X is qualified to translate Chinese. Mr. Y is a Bachelor of Economics in Japan but the study program is in English, so Mr. Y is qualified to translate English.

Also according to the guidance in the above circular, an uncommon language is a language that is rarely displayed on papers and documents used in Vietnam and few people can translate this language into Vietnamese or vice versa.

Conditions for certifying the translator’s signature

According to the provisions of Article 28 of Decree 23/2015/ND-CP, in private translation service business establishments, to legalize translations through authentication procedures, the translator must be recognized as a collaborator of the Justice Division according to the list of translation collaborators of the division approved by the Department of Justice based on the assessment of standards and conditions according to regulations. This list is posted publicly at the headquarters of the Justice Division to create favorable conditions for persons requesting authentication to contact the translator, and is reviewed annually regarding collaborator conditions and standards.

Conditions to become a collaborator of the Justice Division are prescribed as follows:

• Persons having sufficient standards and conditions of a translator listed above are eligible to be translation collaborators of the Justice Division nationwide.
• When compiling the list, translation collaborators must submit a dossier including information on full name ; date of birth; place of birth; identity card or citizen identity card or passport ; place of residence; documents proving language proficiency or commitment to fluency in uncommon languages.
• Must sign a translation collaborator contract with the Justice Division, in which the responsibilities of the translator for the content and quality of the translation are clearly defined.
• Must register a signature sample at the Justice Division by submitting a Request for signature sample registration and directly signing 03 (three) signature samples in the Request for signature sample registration before the Head of the Justice Division.
• In case of wanting to change the signature, the collaborator must have a written request to re-register the signature sample and sign 03 (three) signatures in the Request for signature sample registration.

Thus, in addition to meeting professional qualification regulations, for translators in translation business establishments to have the legality of translations recognized for papers, that personnel must be listed in the translation collaborator list of the Department of Justice where the enterprise is headquartered. If not on this list, a translator who meets the conditions is only allowed to translate papers and documents for personal purposes, and if requesting signature authentication on the translation, must present certain papers according to Clause 2 Article 31 of Decree 23/2015/ND-CP.

Conditions for translation service business in Vietnam

Scope of translation activities

Translators need to note some papers and documents that cannot be translated for translator signature authentication:

• Papers and documents that have been erased, corrected; added or removed content invalidly;
• Papers and documents that are damaged, old, or torn making the content unidentifiable;
• Papers and documents stamped “Secret” by competent agencies or organizations or not stamped “Secret” but clearly stating not allowed to translate;
• Papers and documents containing content contrary to law and social ethics ; propaganda, inciting war against the Socialist Republic of Vietnam ; distorting the history of the Vietnamese people; offending the honor, dignity, and reputation of individuals and organizations, violating citizens’ rights.
• Papers and documents issued, notarized, or certified by competent foreign agencies or organizations that have not been consularly legalized.

Procedures to set up a company in Vietnam for translation service

Steps to set up a company in Vietnam for translation service

Steps to set up a company in Vietnam for translation service

To set up a company in Vietnam for translation service, first of all, the customer must prepare a dossier to perform the “legal birth” procedure for the translation Company. Set up a company in Vietnam for translation service does not require specific conditions but only needs to meet the requirements according to regulations on enterprise establishment, so the dossier components are similar to establishing any other normal company.

Step 1: Prepare and submit dossier

Individuals and organizations prepare and submit the dossier as follows:

Dossier for implementing procedures:

• • Application for enterprise registration.
  • Company Charter (except for private enterprises).
  • List of founding members and shareholders.
  • Copies of documents of relevant individuals and organizations.
  • Investment Registration Certificate.

Authority for resolution:

• • Place of receiving dossier: Business Registration Office under the Department of Finance.
  • Form of submitting dossier: Individuals and organizations submit dossiers in one of the following forms:
    • Submit directly;
    • Submit via postal service.

Step 2: Pay fees

The applicant pays the fee for publishing enterprise information at the time of submitting the enterprise registration dossier. Fee level for publishing enterprise information: According to Circular No. 47/2019/TT-BTC, the fee level for publishing enterprise information is: 100,000 VND/time (This fee is refunded if the enterprise registration dossier is not approved).

Step 3: Business registration agency receives and processes dossier

The business registration agency receives and enters information into the National Enterprise Registration Information System when the following conditions are met:

• Having sufficient documents according to regulations;
• Name of the enterprise has been filled in the application for enterprise registration;
• Having the phone number of the person submitting the enterprise registration dossier;
• Having paid enough fees and charges according to regulations.

The business registration agency issues a receipt of the dossier and an appointment to return results to the applicant.

Step 4: Business registration agency notifies results

Case 1: Notice requesting amendment, supplementation of enterprise registration dossier

• Within 03 days from the date of receiving the dossier, the Business Registration Agency issues a written notice of content needing amendment or supplementation to the enterprise founder or enterprise if falling into one of the following cases:
  • Dossier is not valid;
  • Enterprise name requested for registration is not in accordance with regulations;
  • Information declared in the enterprise registration dossier is inconsistent.
• Content of amendment, supplementation: The provincial Business Registration Agency will record all requests for amendment and supplementation in the notice. Therefore, the enterprise can base on this notice to amend and supplement the dossier to comply with regulations.
• Time limit for amendment, supplementation: 60 days from the date the provincial Business Registration Agency issues the notice requesting amendment or supplementation of the dossier. If overdue and the enterprise does not submit the amended or supplemented dossier, the enterprise registration dossier is no longer valid. The provincial Business Registration Agency will cancel the registration dossier according to the process on the National Enterprise Registration Information System.

Case 2: Granting Enterprise Registration Certificate

The enterprise is granted the Enterprise Registration Certificate within 03 days from the date of receiving a valid dossier when meeting the following conditions:

• Business lines registered are not banned from business investment;
• Name of the enterprise is set correctly according to Articles 37, 38, 39, and 41 of the Law on Enterprises 2020;
• Having a valid enterprise registration dossier;
• Paying enough enterprise registration fees according to regulations of law on fees and charges.

Step 5: Publish enterprise registration content

The business registration agency publishes enterprise registration content on the National Enterprise Registration Portal. According to the provisions of Article 32 of the Law on Enterprises, the published content includes:

• Business Registration Certificate;
• Business lines;
• List of founding shareholders; list of shareholders being foreign investors for joint-stock companies (if any). The time limit for public announcement of information about the enterprise is 30 days from the date of publication.

Step 6: Procedures enterprises perform after establishment

• Engrave seal: Currently, the management and use of the seal will be decided by the enterprise itself. Therefore, the enterprise has the right to decide the seal sample and engrave it at a seal engraving establishment.
• Hang signboard at the company headquarters address.
• Register digital signature (as requested by the enterprise).
• Register bank account.
• Register tax declaration: The enterprise proceeds to log in to the electronic tax system with the account issued by the Tax Authority to proceed with registering necessary declarations.
• Register and notify the use of electronic invoices.

Some famous translation companies in Vietnam

HACO Translation Joint Stock Company

HACO Translation Joint Stock Company is one of the long-standing translation units, providing services in multiple fields such as legal, technical, financial, and event interpretation. With ISO standard processes and a team of professional translators, HACO always ensures accurate and confidential translation quality. Address: No. 2/25 Tho Thap, Dich Vong Ward, Cau Giay District, Hanoi.

Expertrans Global Joint Stock Company

Expertrans Global Joint Stock Company is a leading brand in the field of translation and BPO solutions in Vietnam, providing services in more than 120 languages for domestic and foreign customers. With a team of experienced translators, the company serves many large projects in technology, finance, legal, and manufacturing. Address: 3rd Floor, HUD3 Tower, No. 121–123 To Hieu, Ha Dong District, Hanoi.

Translation Number 1 Company

Translation Number 1 Company specializes in translating personal documents, study abroad documents, legal papers, contracts, and many specialized documents. The company stands out for its fast processing speed, urgent notarized translation, and wide network of collaborators. Address: No. 565 Minh Khai, Vinh Tuy Ward, Hai Ba Trung District, Hanoi.

A2Z Translation Company

A2Z Translation Company is a brand with a wide branch system, providing notarized translation services, multi-language translation, and conference interpretation in many fields. The company is known for reasonable costs and professional working processes, suitable for both individuals and businesses. Address: No. 12/26 Phan Van Tri, Dong Da District, Hanoi.

Phuong Dong Translation Co., Ltd

Phuong Dong Translation Co., Ltd provides high-quality translation services for more than 50 languages, especially strong in legal, medical, technical, and economic fields. With strict quality control standards and a team of deeply specialized translators, the company is chosen by many businesses. Address: 5th Floor, No. 379 Doi Can, Lieu Giai Ward, Ba Dinh District, Hanoi.

What is the minimum charter capital to set up a company in Vietnam for translation service?

According to regulations on conditions to set up a company in Vietnam for translation service, currently, the law only prescribes conditions for translators and judicial collaborators without regulations on minimum charter capital. Therefore, the business owner can decide the charter capital level according to their needs, conditions, and capabilities.

In reality, businesses often register capital from 3 billion VND to optimize benefits. This is a golden number helping to improve the capacity profile when bidding and eligible to apply for a Temporary Residence Card (DT3) with a term of 3 years for foreign investors.

Does opening an Online translation company (using AI/Machine Learning) require an e-commerce exchange license?

Based on Decree 52/2013/ND-CP (amended by Decree 85/2021/ND-CP), legal obligations depend on the operating model. If the website only provides services of the owner themselves, the enterprise performs the notification procedure. In case of allowing third parties to participate in business, the enterprise is required to Register the e-commerce trading floor with the Ministry of Industry and Trade.

For any difficulties or questions related to conditions to set up a company in Vietnam for translation service, please contact Viet An Law Firm for the fastest advice and support!