How to set up businesses in Vietnam? It is a question that many foreigners ask for LSX Lawfirm. So, we will give you the answer according to this article: “Can foreigners set up businesses in Vietnam?”
Law on Enterprises 2020
Law on Investment 2020
Can foreigners set up businesses in Vietnam?
According to the provisions of Clause 1; Article 17 of the Law on Enterprises 2020; then all organizations and individuals have the right to establish and manage an enterprise in Vietnam.
At the same time; individuals with foreign nationality; who conduct business investment activities in Vietnam; as foreign investors according to Clause 19; Article 3; the Law on Investment 2020.
The license to establish a business in Vietnam is also confirmed; in the regulations on business investment policy; in Article 5 of the Investment Law 2020.
Thus; according to the above regulations; foreigners are allowed to establish businesses in Vietnam; when they fully satisfy the conditions under current law.
Conditions to be met when setting up businesses for foreigners in Vietnam
Foreigners establishing a company in Vietnam need to meet the following conditions:
- Firstly; must be a legal citizen; have full papers proving valid personal status; certified by the consulate.
- Secondly; must be able to prove financial capacity; investment ability by providing documents verifying financial capacity; such as bank account balance; savings book; fixed assets.
- Thirdly; the implementation of investment forms; the scope of activities as well as related procedures must satisfy the conditions; under the Investment Law; relevant legal documents; other conditions of international treaties to which Vietnam is a contracting party.
According to current regulations; investors can choose the following types of businesses:
Firstly; One-member limited liability company;
Secondly; Limited liability companies with two or more members;
Thirdly; Joint stock company; Partnerships, etc.
Finally; each type of business has its own advantages and disadvantages. Investors need to choose the appropriate type; based on the purpose and scale of investment.
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