Service of setting up a foreign capital/FDI company in Vietnam

How do foreigners set up FDI companies in Vietnam?

Depending on specific capital contribution conditions, investors can choose one of the following two ways to establish a foreign capital company:

➨ Method 1. Register for an investment certificate

In this way, investors will follow the process to register for an Investment Certificate in Vietnam. After obtaining the certificate, investors will carry out the procedures for registration of the establishment of the company.

Time to complete is from 40 – 55 days or it may take longer depending on registered business fields.

Having an investment certificate will facilitate investors when they participate in bidding for large projects and some big projects from the Government.

➨ Method 2. Contributing capital to a Vietnamese company

With this method, investors will proceed to establish a company with 100% Vietnamese capital. After that, investors contribute capital and buy shares to become shareholders of this company.

It takes 20 – 25 days from the date of submission to complete the process.

The establishment of a foreign-owned company in this way helps save costs, shorten time consuming and simplifies the accounting system, compared to method 1.

SERVICE OF SETTING UP AN FDI COMPANY BY CONTRIBUTING CAPITAL TO A VIETNAMESE COMPANY

Duration: 20 – 25 working days.

The process of starting a foreign company with Vietnamese capital then transferring is as follows:

1. Process to register a company with 100% Vietnamese capital: 5 days;
2. Capital conversion from Vietnamese shareholders to foreign shareholders: 15 – 20 days.

Choosing the service of establishing a foreign company in the form of transfer at Anpha Accounting, you only need to provide the following documents:

1. Information to be established: company name, address, business lines, charter capital…;
2. Notarized copy of ID card/CCCD/passport of Vietnamese to establish a company with 100% Vietnamese capital and capital contributors (2 copies);
3. If you are an individual investor: A notarized copy of the passport of the foreign investor to proceed for transferring capital from a Vietnamese shareholder to a foreign shareholder (3 copies);
4. If it is an investment organization: Notarized copy of consular legalized business registration certificate (2 copies).

Note:

Anpha supports free consultation and information about the expected establishment. Hence, to avoid unexpected arising, you just need to share with Anpha your industry, intended business goals, and Anpha will complete all procedures accurately and quickly on your behalf.

Service of setting up an FDI company by contributing capital to a Vietnamese company

Total cost: Nationwide 30,000,000 VND.

Duration: 40 – 45 working days.

The process of establishing a foreign-invested company as follows:

1. Investment registration (According to Vietnam’s 2014 Investment Law applicable to foreigners investing in Vietnam): 35 – 40 days;
2. Registration of establishment of a foreign-invested capital company: 5 days.

➨ The documents you need to prepare when setting up a company in Vietnam include:

1. Dossiers to apply for an investment certificate:
   • Notarized copy of passport for investors being foreign individuals;
   • Notarized copy of ID/CCCD/passport of Vietnamese people (if Vietnamese people contribute capital);
   • Documents verifying that the foreign investor’s bank account balance is higher than the invested capital;
   • Location lease contract to implement investment project;
   • Profile of capacity and experience of foreign investors.
2. Dossiers of establishment of a foreign capital company;
   • Notarized copy of the foreign investor’s operation license;
   • Authorization letter from foreign investor for representative;
   • Notarized copy of passport of the company representative;
   • Company rules.

Note:

Foreign documents must be consular legalized and translated into Vietnamese certified.

For wholesale and retail industries, after being licensed by the Department of Planning and Investment, they must register their business with the Department of Industry and Trade.

With the direct investment method, the enterprise will be granted an investment certificate by the Department of Planning and Investment – a prerequisite for the project to operate. That is why, investors are required to choose the form of direct investment in the two following cases:

• When planning to implement large projects or projects related to the state;
• When planning to use legal status in Vietnam to invest abroad.

Service of establishing an FDI company by applying for an investment certificate

There are different advantages and disadvantages for each method, details as follows:

In fact, not all foreign investors have Vietnamese acquaintances/relatives. Therefore, the condition “must have a Vietnamese person in the company’s name at the beginning of establishment” in the form of capital contribution to a Vietnamese company leads to low reliability and high risk.

 Read more: Accounting services.

Compare the pros and cons of direct investment and transfer method

1. Can foreigners set up a company in Vietnam?

Yes. Foreigners are allowed to conduct investment and business activities in Vietnam.

2. How much does setting up a company with 100% foreign capital in Anpha cost?

The expense of establishing a company directly with foreign capital at Anpha is 30,000,000 VND nationwide. Please contact us for free consulting support.

3. What are procedures for setting up a 100% foreign direct investment capital company?

When setting up a company with 100% foreign direct investment capital, you need to go through the investment registration procedure to be granted an investment certificate, then apply for an enterprise registration certificate. At each step you will need to prepare quite a few different types of documents, see details here.

4. What is the process of opening a foreign company?

To open a foreign company you have 2 ways:

• Direct investment with 100% foreign capital;
• Carry out the transfer with Vietnamese capital.

Among the types of company establishment, this type has complicated documents and procedures, you can refer here or contact Anpha for free consultation support at 0984 477 711 (Northern) – 0903 003 779 (Central) – 0938 268 123 (Southern).

5. Is it possible to open a foreign company by transferring capital to foreign investors?

Yes. If the enterprise is not required to establish a foreign company by direct investment, you can choose to establish a 100% Vietnamese capital company then transfer it to foreign investors.

Contact us at 0984 477 711 (Northern) – 0903 003 779 (Central) – 0938 268 123 (Southern) for assistance.

Common questions related to a FDI company establishment