A foreign-invested company is a type of investment in Vietnam that has tended to grow strongly in recent years. When establishing a company with foreign capital, investors need to plan and prepare carefully in all aspects. In which, the cost of establishing a company with 100% foreign capital is the top concern. So about the matter “Fees for establishing a foreign-invested enterprise in Vietnam” Let’s find out with LSX in the article below.
Legal grounds
- Investment Law 2020
- Enterprise Law 2020
Conditions for establishing an enterprise with foreign capital investment
Investors, in addition to preparing the cost of setting up a company with 100% foreign capital, must meet the conditions specified in the Law on Investment 2020. These conditions usually apply to foreign investors. when establishing companies, economic organizations, including:
+ Foreign investors establishing economic organizations must meet the conditions for market access for foreign investors.
Specifically, it is necessary to consider industries that are restricted to foreign investors, including: industries and occupations that have not yet had access to the market and industries and occupations with conditional market access.
Before establishing an economic organization, a foreign investor must have an investment project and carry out the procedures for granting and adjusting the Investment Registration Certificate, except in the case of setting up a small business and have just started a creative start-up and a creative startup investment fund in accordance with the law on supporting small and medium enterprises
Documents to prepare when setting up a foreign-invested enterprise
Many customers have questions when using the service as well as finding out the costs of establishing a foreign-invested company, they need to prepare the following documents:
• Legal passport in accordance with the law of the foreign investor if the foreign investor is an individual
• The company’s lawful business license, together with the audited and certified two-year financial statements of the company, has been consularly legalized in the case of institutional investors.
• Agreement/contract on office lease, address for the company’s head office.
• Certificate of competent bank about the balance in the bank account of the individual investing in Vietnam.
Thus, customers only need to prepare the above documents, and for the issues of documents and procedures as well as the cost of establishing a foreign-invested company, we will advise and guide you specifically. row.
Steps to establish a foreign-invested enterprise
Before going to look at the current cost of setting up a foreign-invested company, we must also understand the general issues when setting up this type of company. The process and time to carry out procedures for establishing a company with foreign capital today will be carried out in the order of steps to establish a company as follows:
Step 1: Carrying out procedures to apply for an investment certificate to a competent state agency, the time to carry out this procedure lasts from 30 to 45 working days.
Step 2: Apply for a license to carry out business registration and establishment procedures for companies and businesses, the time to carry out this procedure is usually 3-5 days.
Step 3: Announce to the state agency about the content of business registration on the national portal, this procedure usually takes 1 day.
Step 4: Engrave the seal, and carry out procedures to apply for a seal sample; This procedure usually takes 3 working days.
Step 5: Apply for a tax code with the state agency, the time to carry out this procedure is usually 5-7 working days.
Step 6: Open a bank account for a foreign-invested company within 1 working day
Step 7: Carry out procedures to declare license tax, the time to carry out this procedure is usually 5-10 working days.
Dossier of establishment of a foreign-invested company
In order to set up a business with 100% foreign investment in Vietnam, in addition to the costs of setting up a company, investors also need to pay attention to obtaining an investment certificate before proceeding with the investment. carry out procedures related to business establishment activities in the usual order.
Dossier of application for investment registration certificate
When conducting business projects manufactured in Vietnam by investors from abroad, it is necessary to carry out the procedures prescribed by law to be granted an investment registration certificate in accordance with regulations.
Dossier for carrying out investment registration procedures includes:
A written request from a competent authority to grant an investment license to a foreigner, made according to the form issued by the State.
Detailed proposal on the project intending to invest in Vietnam.
Legal proof from documents of competent authorities about the financial ability of foreigners.
People’s identity card or passport of the investor in case the foreign businessman is an individual or relevant legal documents such as decision on establishment, license to carry out business registration…
=> The agency when submitting the application for this procedure is the Investment Registration Authority.
Dossier of establishment of a foreign-invested enterprise
In addition to the cost of establishing a foreign-invested company, many people pay attention to the documents to carry out the procedures. An individual investment enterprise needs to prepare a dossier consisting of the following components:
+ The company’s charter depends on the type of company registered for establishment.
+ Documents required for company registration.
+ Copies of the following documents:
+ Certificate of registration to carry out business establishment procedures or other relevant legal documents of the organization, or can proceed to use Passport, in addition, there must be a power of attorney or personal certifications. Other lawful investment of the person represented under the authorization of the members investing in Vietnam is an organization.
+ Passport or other legal personal identification of the participating members as individuals.
For foreign investors, according to current regulations, an investment registration certificate is required.
In case the member is a foreign organization, an additional copy of the certificate of registration of enterprise establishment or the corresponding legal document is required and must be legalized from the consulate.
List of members participating in the establishment of the company.
The time to process the procedure lasts from 3 to 5 working days from the time of receiving the complete and valid dossier.
The agency for individuals and organizations to submit dossiers is the business registration agency.
Fees for establishing a foreign-invested enterprise in Vietnam
The cost of establishing a company depends on the industry that the company or individual investor conducts business registration. Below is the cost of establishing a company with foreign investment for your reference:
• Industry related to the service sector: 1,000 USD
• Industries related to trade – Import-Export: 1,700 USD
• Industry related to manufacturing: 2,500 USD
• Conditional business lines: 3,000 USD
• Business projects with capital over 300 billion: The cost of establishing a foreign-invested company will be negotiable.
=> The cost of establishing a foreign-invested company will include closing costs for state agencies and service costs for the company.
Services of LSX
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, LSX’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all brand information of client LSX will be 100% confidential.
Please contact us immediately if you have any questions about “Fees for establishing a foreign-invested enterprise in Vietnam”
Contact LSX
Finally, hopefully the information in the article will provide helpful information for readers and help you solve the problem “Fees for establishing a foreign-invested enterprise in Vietnam” At the same time, LSX Law firm always has leading lawyers and legal consultants who will help you in legal matters of life. If you have any need, please get in touch with us via hotline: +84846175333 or Email: [email protected]
Please see more
- Establish a foreign-invested enterprise in Vietnam
- Dissolution of foreign-invested enterprises in Vietnam
- Proving separate property before marriage under Vietnam law
Frequently asked questions
a. Conditions on nationality of founders / investors
Vietnamese law only allows foreign individuals/organizations/companies to register their commercial presence in Vietnam when foreign traders have the nationality of WTO members.
b. Conditions on location of project implementation, location of company headquarters
Foreigners will not be able to register a company with the following objectives: outsourcing production if the project location is located in office buildings or in small residential houses; and export processing companies, when renting the company’s headquarters, must rent a project implementation location outside the industrial park.
c. Conditions on the financial capacity of investors
Foreign investors must declare information about the investment capital of the investment project and the charter capital of the foreign capital company in proportion to their financial capacity.
Experienced in consulting the establishment of foreign companies, Lawyer Quoc Bao found that the limited company type would be more suitable for foreign investors, because:
Joint stock companies are always considered to be able to raise capital quickly under the Enterprise Law 2020, but for foreign investors, this advantage is almost worthless because:
The main method of raising capital of foreign capital companies, especially those whose owners are foreign legal entities, are often used to apply for short-term loans, medium-term foreign loans. and long-term from the parent company.
For this loan source, the State Bank will consider and approve it based on the amount of mobilized capital specified in the Investment Registration Certificate. Therefore, the fact that foreign-owned companies operate under the model of a joint stock company or a limited company is basically the same, there is no difference.
+ Direct investment forms.
+ Invest in the establishment of economic organizations.
+ Contract investment
+ Business development investment.
+ Investment in the form of Capital contribution, share purchase and merger and acquisition of Vietnamese companies
+ Indirect investment to establish foreign-invested companies
Conclusion: So the above is Fees for establishing a foreign-invested enterprise in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
