Pre-Setting Business In Vietnam
Vietnam is becoming an attractive place for investment because of a stable political system, a dynamic economy, a golden population structure (with 60% their populations are in working age) and its potential market for many companies in the world....
However, there are some rules and restrictions in some cases, according to the law, then the foreigner should consider and understand before starting to set up a business in Viet Nam.
1. Forms of business:
Theo choice of investment vehicle will depend on situations for example: the size of the project, the aim of investment, etc.
The forms of business in Viet Nam that the foreign investors can consider: (i) investment in the establishment of a business organization: Limited – Liability Company, Joint-stock Company, Partnership; (ii) contributing capital, buying shares or buying capital contributions of business organization; (iii) investment under PPP contracts; (iv) investment under business cooperation contracts.
The foreign companies may apply to open Branches (is permitted to conduct commercial activities) and Representative Offices (is not permitted to make any business) in Vietnam.
2. Lines of Business:
There are conditional business lines and non-conditional business lines.
For conditional business lines in Vietnam, please contact us to request the list via email: firstname.lastname@example.org. Foreign investors can make investment in this conditional business lines if all conditions are fulfilled and the fulfillment of these conditions is maintained throughout the period of investment.
The foreign investors can engage in the non-conditional business lines in Vietnam.
Some taxes need to be paid by the investors when they have business activities in Vietnam:
- Corporate income tax;
- Various withholding tax:
- Capital assignment profit tax;
- Value added tax;
- Personal income tax of employees;
- Social insurance, unemployment insurance and health insurance contributions
Some taxes may be applied in the certain specific activities: special sale tax, export tax, environment protection tax.
4. Can the investors transfer their profit and capital out of Vietnam?
Yes, they can.
The capital and profit that can be transferred must be legal and before transferring, a company must pay all taxes and all financial obligation in Vietnam.
After obtaining the Certificate of Investment Registration and Certificate of Business Registration, the foreign individuals can apply for Visa ĐT that the duration is maximum 5 years. And, the foreigners can get residence card, buy commercial houses, etc.
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