BUSINESS REGISTRATION IN VIETNAM

Vietnam’s vibrant economy, characterized by its rapid growth and increasing integration into the global market, has made it a prime destination for entrepreneurs and foreign investors. Establishing a business in this Southeast Asian nation can be both exciting and challenging.  Business registration in Vietnam includes detailing the necessary steps, requirements, and considerations to ensure a successful venture.

The process of registering a Limited Liability Company (“LLC”) in Vietnam involves several key steps, primarily focused on obtaining necessary certificates and complying with local regulations. Below is the registration process:

COMPANY NAME RESERVATION

• Reserve a Company Name: The first step is to reserve a unique name for LLC with the Department of Planning and Investment (“DPI”). The name must not be identical to any existing businesses in Vietnam. This reservation is typically valid for 60 days.

PREPARE REQUIRED DOCUMENTS

Following documents will be ill needed to be prepared:

Investment Registration Certificate (“IRC”) application, which includes:

•  A copy of the company’s charter.
• A detailed description of the business operations.
• A list of shareholders and their respective shares.
• Proof of the registered address.
• A business plan outlining the investment project.
  
  

Enterprise Registration Certificate (“ERC”) application, which includes:

• A copy of the IRC.
• A copy of the company’s charter.
• A list of shareholders and their respective shares.
• A copy of the tax registration certificate.
• Bank account details.

SUBMIT APPLICATIONS

1. Submit the IRC Application: After preparing the documents, submit the application for the IRC to the DPI. This process may take approximately 3-4 weeks.
2. Submit the ERC Application: Once the IRC is approved, submit the ERC application to the DPI. This typically takes about 1 week.

OBTAIN BUSINESS LICENSE

After receiving the ERC, an application for a business license is to be submitted. This involves submitting additional documentation, including:

• A copy of the company’s charter.
• A copy of the ERC.
• A list of shareholders.
• Bank account details.

TAX REGISTRATION

Register the LLC with the local tax office to obtain a tax code. This involves submitting:

• A copy of the ERC.
• A copy of the business license.
• A copy of the company’s charter.

SEAL AND BANK ACCOUNT REGISTRATION

• Company Seal: Register the company seal with the DPI, which is required for official documentation.
• Open a Bank Account: Open a corporate bank account in Vietnam and deposit the required capital as stated in the IRC and ERC.

POST-REGISTRATION COMPLIANCE

After the registration process, ensure compliance with the following:

• Social Insurance Registration: Register for social insurance, health insurance, and unemployment insurance for employees.
• E-signature Registration: Obtain an e-signature for online tax payments.
• Business License Fee Declaration: Submit a declaration for the business license fee.

CONCLUSION

Registering a business in Vietnam offers numerous opportunities in a rapidly growing economy. The entire process of registering an LLC in Vietnam can take approximately 45 to 60 days, depending on the efficiency of document preparation and processing times at various government agencies.

With careful planning, compliance with local regulations, and a commitment to building strong relationships, ventures in Vietnam can thrive and contribute to the country’s economic landscape.