A business entity in Vietnam

A business entity in Vietnam

Formation of a business entity in Vietnam and business registration in Vietnam

http://www.vietnamlaws.com/pdf/LegalGuidetoInvestmentinVietNam.pdf

There are four types of business entity in Vietnam you can consider to choose for your investment in Vietnam. These types of business entity include liability limited company, Joint Stock Company, representative office and branch.

Hnlaw & Partners Law Firm would like to clarify about the pros and cons for the business entity and clarify about the business registration in Vietnam for liability limited company and Joint Stock Company as follows:

I. Entity formation:

  1. Liability Limited Company

Founders Liability is limited to the capital contributed to the company

  • Need at least one founder
  • Simple Corporate Structure
  • Can not issue shares or be listed on public stock exchange

2. Joint Stock Company

  • At least 3 founders
  • Requires a management board and inspection committee
  • Can issue different types of shares

3. Representative Office

  • No commercial activities or revenue in Vietnam allowed
  • Carry out supporting roles for the parent company such as:

+ Market research

+ Finding investment partners

+ Finding investment opportunities

+ Promoting parent companies

4. Branch

  • Allowed to carry out commercial activities and earn revenue
  • Parent company bears all the liability
  • Activities are limited to the activities of the parent company

II. Business Registration for Liability Limited Company and Joint Stock Company

http://www.hnlaw.vn/en/investing-in-vietnamese-companies%ef%bb%bf/
  1. Investment Registration

Necessary Documents prepared by the investor

  • A copy verifying legal status of the investor:

+ Passport; a copy of the certificate of establishment

  • Documents verifying financial status of the investor:
    + Financial statements of the last two years of the investor

+ Commitment of the parent company to provide financial support; commitment of a financial institutions to provide financial support; guarantee for investor’s financial capacity; description of investor’s financial capacity;

  • Documents about the legitimate places for investment: housing rental contract, the lease agreement or other documents certifying that the investor has the right to use the premises to execute the project shall be submitted;
  • The business cooperation contract (BCC) (if the project is executed under a BCC).

2. Business Registration

Necessary Documents prepared by the investor:

  • A copy verifying legal status of the investor:

+ Passport; a copy of the certificate of establishment

  • A copy of investment registration certificate

Other dossiers shall be prepared all by Hnlaw & Partners Law Firm. Please contact us as Hnlaw & Partners Law Firm at tuvan.hnlaw@gmail.com or call us at (+84)912918296.

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