Company registration fees in Vietnam will vary based on their type. Ensure your business’s success with AZTAX. Our experienced consultants will guide you through the Vietnam company registration process, collaborating with you to identify the most cost-effective solution tailored to your specific requirements.
1. Company registration fees in Vietnam for each type of company
The three main types of companies foreigners commonly register in Vietnam are Limited Liability Company (LLC), Joint Stock Company (JSC), and Representative Office. company registration fees in Vietnam.
1.1 Limited liability company (LLC)
A popular choice among foreigners seeking to establish a presence in Vietnam, a Limited Liability Company (LLC) is a distinct legal entity from its shareholders, recognized as such by Vietnamese law. This recognition has granted the LLC the ability to engage in legal activities such as entering contracts, owning assets, and more.
Timeline: The registration process for an LLC in Vietnam typically spans 4 to 6 weeks.
Registration Process for an LLC in Vietnam:
- Step 1: Choose a unique company name, ensuring it is not already in use by another business in Vietnam.
- Step 2: Prepare necessary documents, including personal identification of members, proof of address, and a comprehensive business plan.
- Step 3: Submit the required documents and obtain an Investment Registration Certificate (IRC) from the Department of Planning and Investment (DPI).
- Step 4: Submit the IRC to the business registration office to secure an Enterprise Registration Certificate (ERC).
- Step 5: Complete the tax registration process by submitting the ERC and required tax forms to the tax office.
- Step 6: Open a corporate bank account in the company’s name for financial management.
Experience company establishment service of AZTAX to minimize cost:
While the registration expenses for establishing an LLC in Vietnam can vary based on the industry of operation, the starting cost for LLC registration with AZTAX is approximately USD 2,500.
The comprehensive cost for registering an LLC in Vietnam with AZTAX covers the essential company incorporation charges, encompassing:
- Investment Registration Certificate (IRC)
- Business Registration Certificate (BRC)
For an LLC aiming to register in Vietnam, the presence of a resident director, office address, and necessary visas and permits is mandatory. AZTAX offers these as add-on services if the company does not already have them:
- Virtual Office (USD 600): AZTAX provides a virtual office address for company registration purposes.
- Work Permit & TRC Processing (USD 1,500 per person): Non-Vietnamese employees, including the Chief Representative, must obtain a work permit. The Temporary Residence Card (TRC), valid for two years, is processed in 2 weeks, while the work permit timeline is 4-6 weeks.
- Business Visa (USD 1,000 per person): This is applicable for legal representatives and employees sponsored by the company to come to Vietnam, with a validity of 3 months. The timeline for acquiring a business visa is 4 weeks.
1.2 Joint stock company (JSC)
Joint Stock Company (JSC) is a legal entity owned by at least three founders. It is frequently employed when foreign investors aim to collaborate with Vietnamese locals to comply with local ownership regulations in certain industries in Vietnam. JSCs offer flexibility in terms of management and control, enabling a wider range of potential investors and partners.
Timeline: The registration process for a JSC in Vietnam typically takes around 2-3 months.
Registration Process for a JSC in Vietnam:
- Step 1: Choose a Unique Company Name: Ensure the chosen name complies with Vietnamese regulations.
- Step 2: Obtain Approvals: Obtain approvals from relevant Vietnamese government agencies, including the Ministry of Planning and Investment and the Department of Planning and Investment. Additional approvals from specific industry-related agencies such as the Ministry of Industry and Trade, Ministry of Finance, Ministry of Construction, and Ministry of Natural Resources may be required.
- Step 3: Draft the Company’s Charter: Outline the company’s purpose, management structure, and capital requirements in the charter.
- Step 4: Submit Documents: Submit the company’s charter and approvals to the Department of Planning and Investment.
- Step 5:Obtain Business License: Acquire a business license from the Department of Planning and Investment, allowing the company to operate legally in Vietnam.
- Step 6: Open a Corporate Bank Account: Establish a corporate bank account to receive investment capital and managing company finances.
Total Cost with AZTAX:
The minimum cost for registering a JSC in Vietnam with AZTAX varies based on the industry due to diverse requirements and regulations. The approximate cost for JSC registration with AZTAX starts from USD 2,500.
Fixed Cost: The cost of registering a JSC in Vietnam with AZTAX encompasses the following authorities:
- Investment Registration Certificate (IRC)
- Business Registration Certificate (BRC)
For JSC registration in Vietnam, it is mandatory to have a resident director, office address, and visas & permits. AZTAX provides these as add-on services if not available:
- Virtual Office (USD 600): Use AZTAX’s business address as your registered business address.
- Work Permit & TRC Processing (USD 1,500 per person): Obtain work permits for non-Vietnamese employees, including the Chief Representative. TRC, valid for two years, is processed in 2 weeks, while the work permit timeline is 4-6 weeks.
- Business Visa (USD 1,000 per person): Applicable for legal representatives and employees coming to Vietnam under the company’s sponsorship, valid for 3 months. The processing timeline is 4 weeks.
1.3 Representative Office
The Representative Office (RO) is a distinct business entity in Vietnam enabling foreign companies to establish a presence in the country without undertaking commercial activities. It serves as a liaison between the parent company and the local market, with limitations on generating income or engaging in commercial transactions.
The primary objectives of a Representative Office are to promote the company’s products and services, conduct market research, and sustain relationships with current clients and suppliers.
Timeline: The registration process for the Representative Office (RO) in Vietnam typically takes 2-4 weeks.
Registration Process for a Representative Office in Vietnam: The process of registering a Representative Office in Vietnam involves obtaining necessary approvals and certifications from relevant government agencies. AZTAX assists at every step, from understanding requirements to completing registration and ensuring compliance with local regulations.
- Step 1: Choose a Business Name: Verify name availability with the Department of Planning and Investment (DPI).
- Step 2: Obtain an Investment Registration Certificate (IRC): Acquire IRC from the DPI.
- Step 3: Submit Required Documents to the DPI: Documents include IRC, office lease agreement, passport copies of the representative and the foreign company’s head, and a power of attorney.
- Step 4: Obtain a Business Registration Certificate (BRC): Acquire BRC from the DPI.
Total cost of starting a business in Vietnam with AZTAX:
The total cost of registering a Representative Office in Vietnam varies based on the industry and additional services required (e.g., tax and accounting services, virtual office). The approximate cost for registering a Representative Office with AZTAX is $2,500 USD.
Fixed Cost: The cost of registering a Representative Office in Vietnam with AZTAX includes company incorporation charges:
- RO license
- RO chop/seal registration
- Open a bank account for RO
Add-On Services: For a Representative Office in Vietnam, having office space and common services is mandatory for registration. AZTAX provides these as add-on services:
- Business Address: $100 per month (Virtual office service to meet business address requirements for company registration, with a minimum 6-month leasing term)
- Tax & Accounting Services: $1,500 (Includes Representative Office operational annual report – $1,000, submitted annually in January, and Bookkeeping – $150 per month, including internal accounting reports)
- Payroll Service: $150 per month (Includes monthly payroll calculation, PIT calculations, and annual PIT finalization)
AZTAX simplifies the company registration process by offering guidance, ensuring cost transparency, and managing the registration on behalf of clients, creating a smoother and less stressful experience.
2. Other company registration fees in Vietnam
Below are other company registration fees that foreign investors may pay when establishing a company in Vietnam:
|Corporate merchant account approval
|Corporate brokerage account approval
|Find local office premises for your staff
|building a business website
3. Post-establishment costs in Vietnam
Upon acquiring business licenses and establishing a bank account, your business achieves legal compliance. These outcomes are tangible results guaranteed by the consulting or law firm you engage for their services.
The setup process is now approaching its final stages. To successfully register a company in Vietnam, there are additional essential expenses to ensure smooth operations. The specific costs depend on the nature of the business and its activities.
- Office Rental: In Vietnam, office rental costs start from 5,275,000 VND (USD 230) per month, with variations based on company size and location.
- Employee Salaries: The average salary in Vietnam is approximately 6,800,000 VND (USD 295) per month.
- Communication and Internet Expenses: High-speed internet (300 Mbps) in Vietnam costs 1,119,000 VND (USD 48.65) monthly.
4. Taxes that businesses must pay after establishing the business
Following successful registration, the company becomes liable for the Business License Tax. This annual fee is due in the first month of the fiscal year, applicable from the second year of operation. Within a 30-day grace period, a payment of $100-$200 is remitted to the State Treasury. Failure to meet this obligation may result in penalties or a tax code block.
As the company commences generating revenue and profit, additional taxes come into play, including Value Added Tax (VAT) ranging from 8-10%, Corporate Income Tax (CIT) at 20% on profits, Foreign Contractor Tax (FCT) ranging from 3-5%, among others.
For comprehensive insights into Vietnam’s business taxation landscape, refer to our detailed guide on [Vietnam Business Taxation](insert link to the guide). Understanding and managing these tax obligations is critical for businesses operating in Vietnam to ensure compliance and financial stability.
5. Minimum investment capital in Vietnam
How much does it cost to open a business in Vietnam is a question that interests many foreign investors. AZTAX answers that currently, according to the Enterprise Law 2020, there are no regulations on minimum capital when establishing a business. Conditions for contributing capital to establish a business depend on the economic capacity and operational purposes for which the business offers an appropriate capital level.
While a significant number of investors opt for a minimum capital investment of $10,000 USD, it’s noteworthy that successful registrations have been achieved with lesser amounts, such as $3,000-$4,000 or $5,000. This is particularly true for straightforward business models like consulting and IT services. Importantly, the size of the owner’s capital also influences the success and duration of the visa permitting their stay in Vietnam. Higher capital investment enhances the likelihood of securing a long-term stay permit, while smaller capital amounts may prompt scrutiny from the immigration office during the visa application process.
Note: The capital must be fully paid up within 90 days of obtaining the company license, as missing this deadline incurs substantial penalties for both the company and the investor.
6. Strategies for Minimizing Company Registration Costs in Vietnam
Starting a successful business in Vietnam requires careful planning and cost consideration. Key strategies to minimize registration costs include:
- Hire Using an Employer of Record (EOR): Utilize EOR services to minimize costs during company setup. EOR services provide an alternative to traditional company formation, enabling you to hire employees without establishing a local entity. The EOR company serves as a legal employer, handling payroll and taxes, allowing you to focus on your core business.
- Avoid Unnecessary Expenses: Be strategic about expenses, such as physical office space, by understanding your business objectives. Opt for virtual offices or co-working spaces instead.
- Register Your Company with AZTAX: Choosing the right options during the company registration process is crucial. Working with a professional service provider like AZTAX streamlines the process, ensuring efficiency and helping you select the best options for your specific needs. This will reduce costs and save maximum time for foreign investors. If you’re considering company registration in Vietnam, consult with an AZTAX professional today for expert assistance.
7. Conclusion about company registration fees in Vietnam
Company registration fees in Vietnam vary depending on factors such as the type of business entity, registered capital, and specific requirements of the industry. The cost typically encompasses charges for business registration, issuance of certificates, and related services. It’s essential to consult local authorities or the Department of Planning and Investment in the relevant province for accurate and up-to-date information on registration fees. Understanding these fees is crucial for businesses planning to establish a presence in Vietnam, ensuring transparency and compliance with regulatory processes.
Hopefully with the above content you can get a brief perspective on the types of establishment costs for each type of business. If you have any questions about the above content, you can contact us using the information below for specific advice.
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