Setting up a company in Vietnam

Opening an English Langugue Center in Vietnam

Opening an English Language Center is the best idea for foreigners who would like to start a business in Viet Nam. With the requirements of the integration of Viet Nam these days, English is now becoming the compulsory subject for students from the ages of 10, and all Vietnamese students are requested to obtain the Toeic or IELTS with the suitable level to be graduated from Universities or Colleges. Therefore, we would like to provide a basic guide for those who would like to establish an English Center in Viet Nam in this article.

- Decree No. 86/2018/ND-CP dated June 06, 2018;

- Decree No. 135/2018/ND-CP dated October 04, 2018;

- Decree No. 46/2017/ND-CP dated April 21, 2017;

- Circular No. 04/2020/TT-BGDDT dated March 18, 2020;

II. Process of setting up English Center in Vietnam

According to the Law of Viet Nam, licenses and certificates for setting up an English Language Center in Viet Nam are as following:

- Investment Registration Certificate (“IRC”);

- Enterprise Registration Certificate (‘ERC”);

- License to provide education;

Preparing to set up an English Language Center in Viet Nam:

1) Seeking the location for the English Language Center:

Foreign investors are required to have a place for the project and for the company/English Center. The information of the location is essential and important; the foreigner investors cannot submit the dossier for IRC or ERC without the information about the location. The investor may receive the land by leasing State or by the landlord of the properties.

The minimum average area for teaching is 2.5 m2 per student.

The basic documents requested for a place of the English Language Center:

- The certified copy of the Certificate of Ownership of land use right;

- The certified copy of the leasing contract between the landlord and the investor;

- If the landlord is the company, it is required to provide the business registration certificate;

2) Capital:

According to Article 35 of Decree No. 86/2018/ND-CP dated June 06, 2018,  the capital for the project of setting up short-term training institutions is at least 20 million VND per student, the total capital is exclusive of expenses incurred from land tenancy.

Therefore, foreign investors should have a plan for the capital investment in Viet Nam and it has to show in the bank balance statement. After the ERC is issued, the investor must transfer the money into the investment bank account opening in the bank in Vietnam within 90 days.

3) Preparing other documents for IRC and ERC:

For individuals, the investors have to prepare:

- The certified copies of Passports;

- The certified translation of Passports;

For Enterprise, the investor has to prepare;

- The investor’s financial statements for the last two years or commitment of a parent company to provide financial support; commitment of a financial institution to provide financial support or guarantee for the investor’s financial capacity or other document proving the investor’s financial capacity;

- The Business Registration Certificate of the investor (has to be legalized, translated, and notarized);

- The certified copies of the Passports of the Legal Representative in the company in Viet Nam

- The certified translation of Passports of the Legal Representative in the company in Viet Nam

4) Preparing other documents for the License for approving the Educational provision;

- The documents relating to the Director of Center: documents certifying working in the education sector for at least 3 years and more, a certified copy of a University Diploma in Foreign Languages

- Lists of teachers and staff of the Center:

- Programs, teaching plans, learning materials, lists of textbooks, and primary reference materials;

- Other relevant documents relating to the operation of the Center.

III . Steps to opening the English Language Center in Viet Nam

It takes 15 working days to obtain the IRC, 5 working days to obtain the ERC, and 20 working days to obtain the license for approving the Educational provision according to the Law of Viet Nam, but in reality, the duration usually takes more time than expected.

IV. Conclusion

Establishing an English Center in Viet Nam is now the potential area for doing business in Vietnam because demanding for learning English from students and workers. The investors should be guided and advised by the Law Firm to assist to set up a company in Viet Nam.


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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, Nha Trang, Hue, Quy Nhon ,etc.

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