Setting up Foreign Company in Vietnam
There are quite a few terms being used when it comes to setting up foreign company in Vietnam. Very often, potential investors will just call them foreign company but the exact term is actually foreign investment company. However we call them, the most important factor is how each type of entity benefits you. Therefore, in selecting the type of company, you will need to consider your business nature and business model. Of course, this selection process will be influenced by your future plan as well.
Next, there are generally five different types of company set up, or foreign company set up in Vietnam. Moreover, each type has its own advantageous and procedures to operate. Since this is often the first step of an investor, we will briefly go through them here. If you do require more information, please do not hesitate to contact us here.
Foreign Company Types in Vietnam:
- Setting up a private company in Vietnam
- Setting up a partnership in Vietnam
- Setting up a multi member limited liability company in Vietnam
- Setting up a single memeber limited liability company in Vietnam
- Setting up a shareholding company in Vietnam
Setting Up a Private Company in Vietnam
A private company is an company owned by one individual who shall be liable for all activities of the enterprise to the extent of all his or her assets. Generally speaking, this is the often the type of “foreign company” many investors are interested in.
There are many benefits to setting up a private company in Vietnam. You get 100% control over the business operations and profits since ownership is completely yours. Interested to start one now? Contact us here.
Setting Up a Partnership in Vietnam
When it comes to setting up a partnership in Vietnam, you need to be clear about how partnership is defined here. In a partnership:
- There must be at least two members under one common business name.
- In addition to unlimited liability partners, the business may have limited liability partners too.
- Unlimited liability partners are liable to the extent of all their assets.
- Limited liability partners are only liable for the debts of company to the extent of their capital contribution.
Setting Up a Multi Member Limited Liability Company in Vietnam
Next, in a multi member limited liability company
- The number of members is limited to 50.
- A member may be an organization or an individual.
- A member is liable for the debts of company to the extent of their capital contribution.
SETTING UP A Single MEMBER LIMITED LIABILITY COMPANY IN VIETNAM
Whereas in a single member limited liability company, it is an enterprise owned by one organization or individual. Therefore, the company owner is liable for all debts and other property obligations of the company to the extent of the amount of the charter capital of the company.
Setting Up a Shareholding Company in Vietnam
Lastly, a shareholding company is an enterprise in which:
- The company’s charter capital is divided into equal portions called shares.
- Shareholders may be individuals or organisations.
- There is no maximum shareholders but the minimum is three.
- Shareholder’s liability is based on capital contribution.
In setting up a foreign company in Vietnam, the above types of company are available for your selection. Upon selecting the type of company (let us know if you need assistance in picking one), the typical application timeline is between 2-3 months. Depending on circumstances, we may be able to get the investment certificate for you earlier!
For more information about setting up company in Vietnam, please feel free to contact us.