Authorized Representative of the Company Under New Law on Enterprises

 In order to raise the standard of business environment in Vietnam, Law on Enterprises 2015 reduced many administrative procedures of establishing and running a business, including the representative authorization of the member or shareholder of the company.One of the distinguished amendments: authorized representative of the member or shareholder which is legal entity is not required to inform the licensing authority (i.e. Department of Planning and Investment).Law on Enterprises 2015 provides that the appointment of an authorized...

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Conditions of Setting up Import and Export Company in Vietnam

     Before Vietnam joined World Trading Organization (WTO), distribution and import, export activities conducted by foreign owned entities are strictly regulated by Vietnam government. As such, foreigners could only conduct the import of goods through the Vietnam agents.Since 2007, Vietnam has become an official member of WTO and it had to commit a route to open local market to foreign companies and traders, including foreign distributors. Within 02 years from the date of accession to WTO, regulations with services and trading activities...

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Which Form of Investment - Branch or Company?

  Foreign entities can set-up company or branch offices in Vietnam to carry out business activities.There are several main different aspects between opening a branch office or establishing a foreign owned company in Vietnam.ConditionsPermits for establishment of Vietnam-based branches of foreign enterprise shall each have a valid term of five years.Foreign enterprise must choose between establishing a 100% foreign capital enterprise or forming a joint-venture with domestic investor or company.CertificateThe Branch office needs to apply...

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How to Establish Company in Vietnam?

       Foreign investors may invest in the form of 100% capital to establish company in Vietnam, being limited liability company, joint stock company, partnership company.Foreign investors that invest in Vietnam for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted investment registration certificates. Investment certificates shall concurrently be business registration certificates.  Company...

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How to Set up Trading Company in Vietnam

 Investment in setting up trading company in Vietnam is considered as investment in conditional investment areas.Once an underdeveloped country, in the last two decades Vietnam has shown an incredible growth in the world economic scene, especially in the criteria of investment attraction. For a foreign company that is interested in expanding the business in a new country or region, Vietnam is a promising destination. In order to start a company or specifically a trading company in Vietnam, foreign investor should comprehensively...

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10 Questions to Ask Before Setting up Company in Vietnam

       Foreigners are encouraged to make investment in Vietnam through direct investment by Setting up company in Vietnam.However there are restrictions in some cases in regard to investment capital, investment area, special licenses required. The investor is suggested to consult with a law firms in Vietnam for advice and service offering.Before setting up business in Vietnam, ask yourself the following questions:1. Which business should I invest in Vietnam?There are non-conditional investment areas and conditional...

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What Important Step-by-Step Guide to Establish Company in Vietnam?

 When foreign investors invest in Vietnam, they could establish company in Vietnam. Foreign investors have the right to choose the appropriate forms of enterprise such as a limited liability company, joint stock company, etc. with specific steps are as follows:Step 1: Register the investment projectInvestors submit an investment project registration file to the Business Registration office of the province or city or the management board of an industrial zone, an export processing zone or a high-tech zone for the approval of an investment...

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How a Foreign Company Apply for Certificate of Origin in Vietnam?

     Vietnam has growing fast due to the opening policy of the government, and has been signing a number of free trade agreements with ASEAN, China, Korea, Japan, India, Australia, New Zealand, Chile, Russia, Belarus… with effectiveness. The expecting Europe Vietnam Free Trade Agreement has been signed but not yet effective at this moment. Having said that, Vietnam has become a destination for foreign investors to set up company and factory in Vietnam to undertake manufacturing for export and enjoy tax preference because...

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How to Set up Foreign Owned Company in IT and Computer Related Service?

      Information technology and computer related service have played an extremely important role in life as well as in business activities on global scale. The industrial revolution 4.0 has comprised of many technologies and IT and computer service take a big part of such. The laws of Vietnam and the international commitments to which Vietnam is a party have no restrictions on foreign investors in terms of both the form of investment and the proportion of capital contribution in business in this field. Further, Vietnam...

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What Rights Shareholder Holds in Joint Stock Company?

  Shareholders are individual or organization that owns at least one share of the joint-stock company and also are owner of the joint-stock company. Along with these roles, their interests are tied to business operations although they may not directly manage the day-to-day company affairs. In order to implement governance, the powers and responsibilities of each interest group such as shareholders, the board of directors, managerial personnel, etc. should be assigned based on the statutory principles and procedures.According to the...

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How to Set Up Company in Hanoi?

    The Law on investment 2021 has a lot of investment incentive policies in economic sectors in Vietnam for foreign investors.Foreign investors that invest in Vietnam in general and Hanoi in particular for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted Investment Registration Certificates (“IRC”) and Enterprise Registration Certificate (“ERC”). Company with 100% foreign capital has founded and operated from...

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Differences Between Limited Liability Company and Joint Stock Company

 How to distinguish a Limited Liability Company and a Joint Stock Company?”Vietnam Law allows the establishment of a company in Vietnam in various forms. It is an important step in investment process.Investors could choose different forms depending on the needs and capacity on the ability to raise capital and sharing the risk in business as well as the management and operating costs. Each form will have its own organizational structure, operating mechanism, rights and obligations specified under Law on Enterprise 2014.Currently, Limited...

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