Understanding the requirements for setting up a company in Vietnam is crucial; especially to those who are about to start a business here. Hence that reason, LSX Lawfirm will give details on the issue in this article.
Legal grounds
- 2020 Enterprise Law
- 2014 Investment Law
Business establishment subject
Firstly, one could only start a company when they are subject to the right to establish a business. Accordingly, all organizations and individuals have the right to establish and manage enterprises in Vietnam; except for the cases specified in Clause 2, Article 17 of the 2020 Enterprise Law.
In the case of foreigners, they could set up a business in Vietnam, as long as they do not fall into those specified cases.
Requirements on registered business line
Thus the provisions of the 2020 Enterprise Law and WTO Law, enterprises have the right to freely conduct business in industries that are not prohibited by law.
Prohibited business lines can be advertising, resource extraction, etc. In addition, some other industries will need government permission or have a Vietnamese joint venture partner.
Requirements on company’s name
Thirdly, the name of the enterprise must satisfy the provisions of Articles 38 – 42 of the Law on Enterprises. Accordingly, the enterprise name must be in Vietnamese, numbers, and symbols, consisting of 2 elements in order, type of business, and proper name.
Nonetheless, the name must not violate the prohibitions in the business naming as follow:
- Do not use the same name or cause confusion with other registered business names
- Names of state agencies, units of the people’s armed forces, names of political organizations or socio-political organizations may not be used to make the whole or part of the enterprise’s proper name; unless otherwise specified approval of that agency, unit or organization
- Do not use words and symbols that violate the historical, cultural, ethical and fine traditions of the nation to name the business.
Requirements on registered address
According to Article 43 of the Enterprise Law, the head office of an enterprise is the contact point of the enterprise. Thereby, State agencies contacting enterprises by official letter sent directly to the address of the head office. Enterprises need to ensure that the address is clear so that the official document is not lost; affecting the communication with state agencies.
Requirements on minimum capital requirement
Although there are no minimum capital requirements in Vietnam for most business lines; it must be able to cover the expenses of self-sustaining. In fact, depending on the field and project that the Foreign Investor invests in Vietnam; the licensing agency will consider the condition of financial capacity for approval to allow Foreign Investors to do business or not.
Hope the article “Requirements for setting up a company in Vietnam” is useful for you! If you have any questions, please contact Lawyer X for quick and best legal services: 0833102102.
Related questions
According to the provisions of Vietnamese law, Foreign Investors may choose to establish any type of business such as sole proprietorship, limited liability company, corporation shares, partnerships.
No, a Foreign Capital Company does not need a Legal Representative or a Director who is Vietnamese.
The two most common types of enterprises are limited liability companies and joint-stock companies.
Conclusion: So the above is Requirements for setting up a company in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
