Business formation services in Vietnam: What foreigners should know before getting started

Vietnam is emerging as an attractive destination for international investors and entrepreneurs, thanks to its stable business environment, young population, and impressive economic growth rate. However, to establish a business in Vietnam, foreigners need to clearly understand several legal and practical aspects to ensure a smooth and lawful startup process.

1. Are foreigners allowed to set up businesses in Vietnam?

Yes, they are. According to the current Investment Law and Enterprise Law, foreign individuals or organizations are permitted to establish companies in Vietnam in the form of foreign-invested enterprises (FDI companies). They may hold from 1% to 100% of the capital, depending on the registered business sector and Vietnam’s international commitments.

2. Common types of business entities

Foreigners typically choose one of the following business types:

• Limited Liability Company (LLC) with one or multiple members: Suitable for small and medium-sized enterprises.
• Joint-stock company (JSC): Commonly chosen by companies planning to raise capital or go public in the future.

3. Steps to establish a business for foreigners

The process of setting up an FDI company in Vietnam usually involves the following steps:

• Registering an investment project (only applicable for certain sectors or large-scale projects)
• Obtaining an Investment Registration Certificate (IRC)
• Obtaining an Enterprise Registration Certificate (ERC)
• Registering a company seal, tax code, bank account, and fulfilling initial tax obligations
• Obtaining additional licenses if operating in conditional sectors (e.g., education, logistics, e-commerce…)

See more: How to Establish a 100% Foreign-Owned Company in Vietnam

4. What is the minimum investment capital required?

Vietnam does not impose a fixed minimum capital requirement for all businesses. However, depending on the industry, scale of operations, and investment location, the licensing authority will assess the feasibility of the proposed capital. Some industries may require statutory capital (e.g., education, banking, real estate…).

5. Is a business address mandatory?

Yes. A legal business address is mandatory at the time of registration. Foreigners can choose a physical office, co-working space, or virtual office, depending on the business type and purpose—as long as the address is recognized by law.

See also: Top 7 Co-working Spaces in Ho Chi Minh City for Foreigners

6. Important legal considerations

• Not all business sectors allow 100% foreign ownership. For example, retail distribution, logistics, and advertising may require a local partner or be subject to specific conditions.
• Foreign documents must be legalized (e.g., passport, foreign business registration documents, etc.)
• Vietnamese is the official language. All documents must be properly translated and notarized.

7. Work with a professional consulting firm

Completing legal procedures on your own can be complicated and time-consuming, especially if you're unfamiliar with Vietnam's legal and administrative system. Partnering with a reputable business consulting firm will help you save time and costs, reduce risks, and ensure full legal compliance.
Establishing a business in Vietnam offers many opportunities but requires careful legal and operational preparation. Foreigners should understand the process, choose the appropriate business structure, and seek professional support to start smoothly.
If you're looking for a trusted partner to support your business journey in Vietnam, Zora Consulting is your ideal choice. With a team of experienced consultants, legal expertise, and deep market understanding, Zora is committed to delivering comprehensive, optimal, and effective solutions tailored for every foreign investor.