Setting up a Company in Da Nang 2022
Da Nang is the socio-economic center of the Central and Highlands Regions and an important gateway connecting the South and the North. Da Nang is oriented to become the financial center of Vietnam and Asia by 2030. Therefore, there are large enterprises and banks opening in this city and create an ecosystem for enterprises, especially the foreign companies setting up a company in Da Nang.
From the eyes of the investors, Da Nang is seen as the potential area for young companies and manufactures to do a business in Viet Nam.In terms of infrastructure, Da Nang has the connection of all types of traffic including international Airport located in the city center, sea transportation, railway system and roads connecting the provinces. The easy and convenient transportation contributes to promote the regional economy of Da Nang. Moreover, Da Nang is also an educational center of Viet Nam. There are many big universities, colleges and schools in Da Nang. These educational creates the young, well-trained and qualified human resource to meet the labor needs of the foreign-invested enterprises in particular and enterprises in general.
In addition, Da Nang is also the entertainment center of the region. With the advantage of having the longest and most beautiful coastline in Vietnam and in the world, Da Nang is a tourist destination all people from the world. Connecting to Hoi An and My Son which are two world cultural heritages, Foreigner investors coming to Da Nang not only do a business, but also relax and enjoy their life.
Preparing for opening a business in Da Nang
Before setting up a company in Viet Nam, the foreign investors should prepare and study regulations and laws relating to establish, maintain, and develop a company, compulsory insurances and other financial obligations.
Firstly, The investors need to understand the lines of business that the company is predicted to do in Viet Nam. There are some business’s activities that the investors is prohibited to do and other areas need the conditionals to do. Foreign investors can contact DB Legal for checking your lines of business to make sure that they can invest in Viet Nam or not.
Secondly, after checking the business lines, investors need to find a suitable business location. The location of the project should be in accordance with business activities and regulations of law. Virtual office will not be accepted when applying for investment project registration as well as setting up a business in Vietnam. After the company is established, depending on the needs and agreement of the investor and the property owner, the parties can agree to convert to virtual office.
Thirdly, For the financial preparation for investing, when registering to implement a project and set up a business in Vietnam, investors must show the finance’s ability for the implementation of the project, specifically the amount of money investing must be equal to or less than the amount of money have in the account of any bank in the world. The investor must provide a copy of the bank balance showing that the money in the bank's account is equal to or higher than the registered investment capital in Vietnam.
Finally, preparing other documents related to the investor's identity such as passport, business registration certificate, enterprise charters. The foreign documents need to be legalized, translated and notarized before using in Viet Nam.
Steps for opening a business in Da Nang
There are two ways to establish a 100% foreign owned enterprise in Vietnam: direct investment and indirect investment.
Option 1, direct investment:
Foreign investors must have an Investment Registration Certificate and an Enterprise Registration Certificate in order to do business in Vietnam.
Step 1: Submit application for issuance of Investment Registration Certificate;
Step 2: Submit application for issuance of Certificate of Business Registration;
Option 2, indirect investment:
Foreign investors must have the Approval for the purchase and sale of shares or capitals for the foreign investors and a Certificate of Business Registration.
Step 1: Submit application for approval to buy and sell contributed capital and shares from Vietnamese investors to foreign investors.
Step 2: Submit application to change the name from Vietnamese owner to foreign owner in the business registration certificate.
The estimated time for 02 procedures is 20 working days, but the actual duration will normally take within 45 working days.
Things to do after establishing a company.
After the business is established, investors need to perform the following necessary tasks:
- Making corporate seal;
- Making a business signboard and hang it in front of the enterprise's headquarters;
- Buying tokenkeys;
- Declaring and paying business license tax;
- Opening a bank account for the business and register to pay taxes online;
- Registering the compulsory insurance’s code;
- Submit application for exemption/work permit for foreign investors;
DB Legal is a full legal service Law Firm in Da Nang, Viet Nam. Our Lawyers bring enormous legal experience for both local and foreign parties in Central Viet Nam, mainly areas in Da Nang, Hoi An, Hue and other provinces in Viet Nam.
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