How to Set up a Business in Vietnam in 2021

1. How to Set up a Business in Vietnam in 2021 in 2021 How to Set up a Business in Vietnam Connect with us for the latest business updates: Linkedin Twitter Facebook

2. How to Set up a Business in Vietnam in 2021 TABLE OF CONTENTS 1. If you are looking to start a business in Vietnam in 2021, you are in good company — Vietnam is one of the fastest-growing economies in the world, with 4.48% GDP growth in 2020. It’s little wonder then that Vietnam is incredibly popular for those wishing to start a business — the outlook is bright, and the local middle-class population is believed to be the fastest- growing in Southeast Asia. Common Legal Entities in Vietnam 2. Requirements for Starting a Business in Vietnam Favourably, there are no minimum or maximum capital requirements for setting up a business in Vietnam (with some exceptions), making its entry extremely accessible. You can also invest in your business using any currency for maximum flexibility. 3. Company Registration Steps in Vietnam It’s clear that Vietnam’s entrepreneurial appeal extends to its increasingly simple process for starting a business. However, as with any country, there are some hurdles, so let’s look at an overview of how you can start your own business in Vietnam during 2021. | 2 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

3. Most Common Business Legal Entities in Vietnam Generally speaking, there are two standard legal classifications for businesses in Vietnam: Limited Liability Company (LLC) 1. 1 to 50 founders/owners. 1 to 3 months of setup time. Cannot have shareholders. No specific requirement for initial capital as long as it is sufficient (real estate and education are the exceptions here). Joint Stock Company (JSC) 2. At least 3 owners but there is no limitation on the maximum number of owners. 1 to 3 months of setup time. No specific requirement for initial capital as long as it is sufficient (real estate and education are the exceptions here). VND 10 billion (US $434,000) initial capital is required if the company is publicly listed. | 3 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

4. how do you determine which form you need to submit to IRAS? Take a look But, Requirements for Starting a Business in Vietnam Capital Requirements for Starting a Business in Vietnam calculator. As mentioned, there are no minimum capital requirements for starting a business in Vietnam for most industries. Specifically speaking, however, the Vietnam Government requires a new business to have ‘sufficient capital’. This means you must have enough capital to cover your expenses until the business becomes self-sufficient. We find most businesses open with around VND 230 million (US $10,000). Still, we’ve also seen some smaller-scale businesses open with as little as VND 69 million (US $3,000). Either way, the Department of Planning and Investment will review your capital to ensure it is sufficient to get your particular business off the ground. This capital will be listed on your Business Certificate, and any change to your capital will require amendments to your company documents. The full list of sectors that do require capital requirements is as follows: Vocational schools Finance and Fin-tech Vocational schools Vocational schools Language centres Real estate companies Finance and Fin-tech Real estate companies Language centres Finance and FinTech Insurance Language centres Insurance Insurance Real estate companies Banking Banking Banking Foreign Ownership Requirements in Vietnam In fact, Vietnam does allow 100% foreign ownership of a business in the majority of industries. Significant exceptions are logistics, advertising, and tourism, for which you will need a Vietnamese Joint Venture Company. Generally speaking, foreign ownership regulations follow the World Trade Organisation (WTO) guidelines. However, there are some cases where some industries are neither covered by WTO guidelines nor by local laws — if this is the case, you will need approval for the ministry in charge of that industry. | 4 | Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021 Last Updated April 2021

5. Requirements for Starting a Business in Vietnam Resident Director Requirements in Vietnam Registering Your Business Address in Vietnam Vietnam requires all companies to have at least one director who is a local resident. While the director does not need to have residency at the time of incorporation, they will need to have a Vietnam residential address. All incorporated businesses operating in Vietnam are required to have a registered business address. While most service-based companies are allowed to have a virtual address, while most goods-based companies (e.g. retail, manufacturing, etc.) must have a physical location for their business address. Investment capital requirements for domestic investors; or 1. 2. If a director is also a founder/owner of the company, they are not required to obtain a work permit, but they will need to apply for a work permit exemption. If a director is not a Vietnam citizen, nor a company founder/owner, they will be required to obtain a Vietnam work permit. Investments that require special licenses. 3. Documentation Required for Business Registration in Vietnam Business plan Enterprise registration certificates, decisions of establishment Financial documents to establish the founder’s/owner’s financial capacity Enterprise registration application Corporate profile establishing the founder’s/owner’s professional experience Founding shareholders and members’ list Certified copies of enterprise registration Legal representatives’ current residency Investment registration certificate Passports, driver’s license, or other identification documents Power of attorney for representatives who perform the business registration Articles of Association Interested to Set Up a Company in Vietnam? Speak To Us Today Our company incorporation team can assist you with a seamless company set up process. | 5 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

6. How to Register a Company in Vietnam - Step by Step 1.Investment Registration Certificate 1. First of all, you will need to approach the Department of Planning and Investment to obtain an Investment Registration Certificate. This will usually take about a month to process and receive. In rare cases where a business is neither covered by WTO guidelines nor by local laws, you’ll need to go to the ministry in charge of that industry, which may make this process more involved in time and effort. 2. 2.Enterprise Registration Certificate Go to the Department of Planning and Investment, to obtain a Business Registration Certificate (BRC), also known as the Enterprise Registration Certificate (ERC). 3. 3. Tax Registration Your business licence certificate number also services as your company’s tax number for the Revenue Department of the Vietnamese Ministry of Finance. You will also receive a digital signature which will allow you to access the online portal to pay your taxes. 4.Capital Contribution 4. Once you have received your ERC, you will have 90 days to make your capital contribution. Be warned; if you do not meet this deadline, you may face fines. 5.Application for applicable Sub Licenses and Permits 5. Some industries, such as manufacturing, recruitment, or logistics, may require sub licenses or permits. Other sectors, such as distributors, may need to register their products. Again, this may add time (up to a few months) to the registration process. Related Read: 2021 Overview of General Tax Obligations and Deadlines in Vietnam | 6 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

7. Conclusion - Where to Next for Starting Your Business in Vietnam Vietnam is fast coming out from the shadows of their larger Southeast Asia siblings as a potential powerhouse economy, and smart entrepreneurs are starting to see it as a lucrative option for investment. While the Vietnamese Government is quickly making changes to make starting a business far simpler, we advise you to see professional guidance when looking to start your own business. Reference 1 Achmad Basjiruddin PT. NDT Instruments Indonesia Jln. Sirsak / Casamora Blok BB No. 01 Jagakarsa, Jakarta Selatan 12630 2 Achmad Basjiruddin PT. NDT Instruments Indonesia Jln. Sirsak / Casamora Blok BB No. 01 Jagakarsa, Jakarta Selatan 12630 With the right help, the incorporation process in Vietnam can be virtually seamless, saving you time, money, and headaches. We’ve made an effort to give you as much free information as possible in this short article, but if you have any questions about incorporating your company in Vietnam, ask us below. Contact Us Let us make starting a business in Vietnam easy. | 7 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

8. IN.CORP GLOBAL PTE LTD 30 Cecil Street, #19-08 Prudential Tower, Singapore 049712 Phone: +65 6320 1888 Fax: +65 6438 2436 Email: info@incorp.asia Website: incorp.asia OUR REGIONAL PRESENCE The information contained herein is intended for general information purposes only and shall not be regarded asprofessional advice. Readers are therefore advised that before acting on any matter arising from these notes, they should discuss their particular situation with the Firm. No liability can be accepted for any action taken as result of reading the notes without prior consultation with regard to all relevant factors. FOLLOW US ON: Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved.