Summary of Steps to Establish a Vietnamese-Owned Enterprise

Establishing a Vietnamese-owned enterprise is a process that requires numerous legal procedures. The following article will provide you with information about the necessary steps to establish a business in Vietnam. Generally, the business registration process includes preparing information and documents, submitting registration and public announcements, creating a company seal, and handling tax procedures. For detailed information on each step, please follow the article below by Zora.

What are the Requirements for Establishing a Vietnamese-Owned Enterprise?

Establishing a local enterprise/Vietnamese-owned enterprise requires business owners to comply with several basic conditions to ensure a smooth and legal process. Here are six conditions for establishing a company that business owners need to know.

Choosing the Appropriate Type of Business

First, selecting the type of business is an important step. Popular types include single-member limited liability companies (LLCs), multi-member LLCs, joint stock companies (JSCs). Each of these types has its own characteristics and legal requirements. Business owners need to carefully consider their scale, goals, and financial capabilities to choose the most suitable type.

Naming the Company

Next, the company name is a crucial factor. Note that the company name must not duplicate previously registered businesses and must comply with regulations on language, ethics, and customs. This not only helps avoid legal issues but also creates a positive impression with customers and business partners.

Business Address

The address of the company's headquarters is also an important condition. The address for business registration must be clear and not in an area prohibited by law. An apartment or residential building address cannot be used for business registration. The headquarters address is not only the place where business transactions are conducted but also where notifications from authorities are received. Therefore, choosing a legal and stable address will help the business operate smoothly and avoid unnecessary complications.

Charter Capital

The next important condition is the charter capital of the business. Ensuring sufficient charter capital will help the business operate effectively. For Vietnamese companies, current law does not require proof of charter capital when establishing a business. During the registration steps, businesses also do not need to prove their charter capital. Thus, the charter capital is self-registered by the business, and they are responsible for the accuracy of the declared content. Charter capital sometimes reflects the scale, capacity, and market position of the company. Customers and partners are more likely to trust and transact with a company that has significant charter capital.

Business Sector

Finally, the business sector chosen by the company must comply with legal regulations. Companies can engage in any business sector not prohibited by law. If the business sector has conditions, those conditions must be met as stipulated. For conditional business sectors, the company needs to obtain additional sub-licenses. Common conditional business sectors include retail in stores, insurance, banking, securities trading, postal and telecommunications services, educational services, etc.

Understanding these basic conditions will provide business owners with a comprehensive view and better preparation for establishing their company. Next, we will delve into the steps for business registration.

Steps to Establish a Business in Vietnam

After ensuring the basic conditions are met, you can proceed with the following steps to establish a business in Vietnam:

Prepare Complete Information About Your Company

Before submitting your business establishment documents, you need to prepare the following basic information:

• Your company name (including Vietnamese and English names, if any).
• Clear and accurate address of the headquarter.
• The business sectors of the company.
• Charter capital suitable for your type of business.
• Names, addresses, and ID Card or passport of owners and legal representative(s)
• Contact phone number and email of the company.

Prepare Business Establishment Documents

After gathering the necessary information, you need to prepare the following documents:

• Business Registration Application: There are various application forms depending on the legal form you choose.
• Valid Copies of ID Documents: For members/shareholders/private enterprise owners.
• Legal Representative's ID Documents: Valid copies as stipulated by law.
• Company Charter: For limited liability companies and joint stock companies.
• List of Members/Shareholders: For limited liability companies and joint stock companies.
• Power of Attorney: If an authorized person submits the documents on behalf of the business owner.

Ensure all documents are properly notarized/certified before submission.

Submit the application for business registration and public announcement

After preparing all the necessary documents, you can submit your application at:

• The Business Registration Office of the local Department of Planning and Investment.
• The online public service portal of the Ministry of Planning and Investment.

Here, the Business Registration Office will receive and assess your application. If the application is valid, they will issue the Business Registration Certificate for your company.

Create and Register the Company Seal

After completing the business registration, you need to create the company seal. You can choose from authorized seal registration centers.

Points to Note During Business Establishment in Vietnam

During the company establishment process, keep the following in mind:

• Business establishment documents must be fully and accurately prepared. Any errors or omissions may result in rejection.
• The headquarters location must be suitable for business activities, meet legal requirements, and be legally registrable.
• For certain specialized business sectors, additional conditions must be met. Research the relevant legal regulations thoroughly.
• If there are any changes to business information during operations, promptly register these changes with the business registration authority.

Comprehensive Business Establishment Services

If you prefer not to handle the complex procedures yourself, you can opt for comprehensive business establishment services. Here are some services offered:

• Advising on the appropriate legal form and company name.
• Preparing and submitting business establishment documents.
• Creating and registering the company seal.
• Completing tax and social insurance registration procedures.
• Supporting other legal procedures after the business is established.

As a leading provider of business establishment support in Vietnam, we actively assist business owners in systematically setting up their companies. Contact us now for a free consultation.