{"id":2428,"date":"2023-10-24T08:15:29","date_gmt":"2023-10-24T08:15:29","guid":{"rendered":"https:\/\/gtax.vn\/english\/?p=2428"},"modified":"2023-11-07T04:20:43","modified_gmt":"2023-11-07T04:20:43","slug":"conditions-for-establishing-a-new-company-in-vietnam","status":"publish","type":"post","link":"https:\/\/gtax.vn\/english\/conditions-for-establishing-a-new-company-in-vietnam\/","title":{"rendered":"Conditions for establishing a new company in Vietnam"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2428\" class=\"elementor elementor-2428\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7b90e4b6 e-flex e-con-boxed e-con e-parent\" data-id=\"7b90e4b6\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5e3fc6cc elementor-widget elementor-widget-theme-post-title elementor-page-title elementor-widget-heading\" data-id=\"5e3fc6cc\" data-element_type=\"widget\" data-widget_type=\"theme-post-title.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Conditions for establishing a new company in Vietnam<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-71a59121 elementor-align-center elementor-widget elementor-widget-post-info\" data-id=\"71a59121\" data-element_type=\"widget\" data-widget_type=\"post-info.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<ul class=\"elementor-inline-items elementor-icon-list-items elementor-post-info\">\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-7f530f1 elementor-inline-item\" itemprop=\"datePublished\">\n\t\t\t\t\t\t<a href=\"https:\/\/gtax.vn\/english\/2023\/10\/24\/\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-date\">\n\t\t\t\t\t\t\t\t\t\tOctober 24, 2023\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<\/li>\n\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-6863c75 elementor-inline-item\" itemprop=\"author\">\n\t\t\t\t\t\t<a href=\"https:\/\/gtax.vn\/english\/author\/admin\/\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-author\">\n\t\t\t\t\t\t\t\t\t\tadmin\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fecf97e elementor-widget elementor-widget-text-editor\" data-id=\"fecf97e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><em>Although Vietnam is a very attractive investment destination for foreign investors, there is still a complicated legal process for establishing a new company. In this section, we will present the conditions for establishing a new foreign business in Vietnam.<\/em><\/p><h3><strong>Minimum capital requirements<\/strong><\/h3><p>For most industries and businesses, Vietnam does not require minimum capital. However, the registered capital will be assessed by the Department of Planning and Investment (DPI) as whether it is enough to cover the business\u2019s expenses until it generates enough revenue to cover expenses. It is possible to form a basic business services company with less than $10,000 in capital in some cases, but in most cases it will be at or above this threshold, depending on the nature of the business. enterprise.<\/p><p>However, it is best to verify whether your business requires a minimum capital investment, as some industries (business lines) do.<\/p><p>Examples include:<\/p><ul><li>Finance, Banking, Insurance and Fin-tech;<\/li><li>Language centers or Vocational schools;<\/li><li>Medical clinics.<\/li><\/ul><p>Note that the amount of registered capital selected and finally approved will be recorded on your Business Registration Certificate, which will likely be seen and known by the companies you do business with. Therefore, a higher amount of registered capital can in some cases have a positive impact for a company, in terms of how a business is perceived by the companies with which it deals. Changing the amount of registered capital after initial business registration requires a formal registration procedure to amend your company\u2019s documents.<\/p><h3><strong>Charter capital and total investment capital<\/strong><\/h3><p>Charter capital is the total value of capital and other assets that the company owner will contribute when establishing the company. The company\u2019s total investment capital can combine both charter capital and loan capital. The charter capital and total investment capital, including shareholder loans or third-party financing, as well as the company charter must be registered with Vietnamese licensing authorities.<\/p><p>Once approved, investors can increase or decrease charter capital with prior approval from the local licensing authority.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c19c77d elementor-widget elementor-widget-text-editor\" data-id=\"c19c77d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3><strong>Capital contribution schedules<\/strong><\/h3><p>According to Vietnamese law, investors must contribute capital within 90 days from the date of issuance recorded on the Business Registration Certificate, unless otherwise approved by the licensing agency.<\/p><h3><strong>Transferring capital to the FIE<\/strong><\/h3><p>To transfer capital into Vietnam, after setting up the\u00a0100% Foreign-Owned Enterprise, foreign investors must open a capital bank account in a legally licensed bank. A capital bank account is a special purpose foreign currency account designed to enable tracking of the movement of capital flows in and out of the country. The account also allows money to be transferred to current accounts to make in- country payments and other current transactions.<\/p><h3><strong>Company registered address<\/strong><\/h3><p>A business requires a legal address in Vietnam to incorporate a company in the country. Most businesses require that it have its own physical location, such as an office or building leased or acquired, particularly for manufacturing, distribution and trading, retail services, restaurants and entertainment venues, and more.<\/p><p>A virtual office address may be used for certain service-based businesses however, such as business or personal consulting companies or similar virtual services firms.<\/p><p>When registering a company, a company submits documents which serve as proof of the address that will be used as the location for the business to operate in once the incorporation is completed. This address may be checked during the incorporation process by The Department of Planning and Investment.<\/p><h3><strong>Company legal representative<\/strong><\/h3><p>A company is required to have at least one Legal Representative. The Legal Representative of a Vietnam-based company can hold a Company President, Director, or General Director position, depending on the company organization structure.<\/p><p>A qualifying legal representative requires a residential address in Vietnam. The residency status of the Legal Representative\u00a0is preferable but should not be a qualifying requirement during the incorporation process; their residency status may be addressed separately. \u00a0<\/p><p>Further, foreign nationals involved with the company will require a work permit for Vietnam which they may apply for during or after the incorporation process.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-21d3373 e-flex e-con-boxed e-con e-parent\" data-id=\"21d3373\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-3e1ed2c e-flex e-con-boxed e-con e-child\" data-id=\"3e1ed2c\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-212edec e-flex e-con-boxed e-con e-child\" data-id=\"212edec\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-08eeda2 elementor-grid-3 elementor-grid-tablet-2 elementor-grid-mobile-1 elementor-posts--thumbnail-top elementor-widget elementor-widget-posts\" data-id=\"08eeda2\" data-element_type=\"widget\" data-settings=\"{&quot;classic_columns&quot;:&quot;3&quot;,&quot;classic_columns_tablet&quot;:&quot;2&quot;,&quot;classic_columns_mobile&quot;:&quot;1&quot;,&quot;classic_row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:35,&quot;sizes&quot;:[]},&quot;classic_row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;classic_row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"posts.classic\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-posts-container elementor-posts elementor-posts--skin-classic elementor-grid\">\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-3580 post type-post status-publish format-standard has-post-thumbnail hentry category-tax-accounting\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/gtax.vn\/english\/personal-income-tax-tax-years-finalisations\/\" >\n\t\t\t<div class=\"elementor-post__thumbnail\"><img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"453\" src=\"https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/income-tax-in-vietnam-768x453.png\" class=\"attachment-medium_large size-medium_large wp-image-3582\" alt=\"Personal income tax is the portion of your income through business, wages, salaries, inheritance, interest or dividends that will be given to the government\" srcset=\"https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/income-tax-in-vietnam-768x453.png 768w, https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/income-tax-in-vietnam-300x177.png 300w, https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/income-tax-in-vietnam-1024x603.png 1024w, https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/income-tax-in-vietnam.png 1081w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t<\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/gtax.vn\/english\/personal-income-tax-tax-years-finalisations\/\" >\n\t\t\t\tPersonal Income Tax: tax years &#038; finalisations\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\tNovember 21, 2023\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t<p>\u00a0 \u00a0Individuals in Vietnam are subject to Personal Income Tax (PIT) based on their tax residence status. Employment income is generally subject to various progressive tax rates, while other income<\/p>\n\t\t<\/div>\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/gtax.vn\/english\/personal-income-tax-tax-years-finalisations\/\" aria-label=\"Read more about Personal Income Tax: tax years &#038; finalisations\" >\n\t\t\tRead More \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-3153 post type-post status-publish format-standard has-post-thumbnail hentry category-business-setup\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/gtax.vn\/english\/setting-up-a-home-office-how-much-does-it-cost\/\" >\n\t\t\t<div class=\"elementor-post__thumbnail\"><img decoding=\"async\" width=\"768\" height=\"512\" src=\"https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Setting-up-a-home-office--768x512.jpg\" class=\"attachment-medium_large size-medium_large wp-image-3155\" alt=\"Setting up a home office can come with some costs and challenges\" srcset=\"https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Setting-up-a-home-office--768x512.jpg 768w, https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Setting-up-a-home-office--300x200.jpg 300w, https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Setting-up-a-home-office--1024x682.jpg 1024w, https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Setting-up-a-home-office--1536x1023.jpg 1536w, https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Setting-up-a-home-office-.jpg 1920w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t<\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/gtax.vn\/english\/setting-up-a-home-office-how-much-does-it-cost\/\" >\n\t\t\t\tSetting up a home office: How much does it cost?\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\tNovember 2, 2023\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t<p>Setting up a home office can come with some costs and challenges, especially if the space is small or shared with others. Creating a home office by remodeling an existing<\/p>\n\t\t<\/div>\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/gtax.vn\/english\/setting-up-a-home-office-how-much-does-it-cost\/\" aria-label=\"Read more about Setting up a home office: How much does it cost?\" >\n\t\t\tRead More \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-3432 post type-post status-publish format-standard has-post-thumbnail hentry category-tax-accounting\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/gtax.vn\/english\/details-of-personal-income-tax-of-foreigners-in-vietnam\/\" >\n\t\t\t<div class=\"elementor-post__thumbnail\"><img decoding=\"async\" width=\"728\" height=\"400\" src=\"https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Gtax-Personal-income-tax-pit.jpg\" class=\"attachment-medium_large size-medium_large wp-image-3434\" alt=\"Personal income tax(PIT) rates in Vietnam for foreigners only depend on income, amount earned and time of income. However, both residents and non-residents may be required to pay income tax, it&#039;s just that the tax rates will be different.\" srcset=\"https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Gtax-Personal-income-tax-pit.jpg 728w, https:\/\/gtax.vn\/english\/wp-content\/uploads\/2023\/11\/Gtax-Personal-income-tax-pit-300x165.jpg 300w\" sizes=\"(max-width: 728px) 100vw, 728px\" \/><\/div>\n\t\t<\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/gtax.vn\/english\/details-of-personal-income-tax-of-foreigners-in-vietnam\/\" >\n\t\t\t\tDetails of personal income tax of foreigners in Vietnam\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\tNovember 10, 2023\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t<p>Individuals in Vietnam are subject to Personal Income Tax (PIT) in Vietnam, based on their tax residency status. But how is tax calculated and is all income calculated at a<\/p>\n\t\t<\/div>\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/gtax.vn\/english\/details-of-personal-income-tax-of-foreigners-in-vietnam\/\" aria-label=\"Read more about Details of personal income tax of foreigners in Vietnam\" >\n\t\t\tRead More \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Although Vietnam is a very attractive investment destination for foreign investors, there is still a complicated legal process for establishing a new company. In this section, we will present the conditions for establishing a new foreign business in Vietnam. Minimum capital requirements For most industries and businesses, Vietnam does not require minimum capital. However, the &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/gtax.vn\/english\/details-of-personal-income-tax-of-foreigners-in-vietnam\/\"> <span class=\"screen-reader-text\">Details of personal income tax of foreigners in Vietnam<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":1,"featured_media":517,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[6],"tags":[],"class_list":["post-2428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-setup"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.8 - 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In this section, we will present the conditions for establishing a new foreign business in Vietnam. Minimum capital requirements For most industries and businesses, Vietnam does not require minimum capital. 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