Establishing a company is the first important step for entrepreneurs when entering the market. To achieve this, businesses must have a Business Registration Certificate and comply with all legal and accounting requirements. With many years of experience in consulting on establishing companies, Informly has supported thousands of entrepreneurs to successfully start their businesses each year. Our team of tax experts and certified accountants ensure a smooth and compliant company formation process. We are proud to provide the most professional, cost-effective and effective company establishment services across 63 provinces and cities nationwide.
Why do foreign owners hire company establishment services in Vietnam?
Establishing a company is more than just a legal formality – it’s the foundation of a successful business. Many entrepreneurs seek the support of a trusted law firm to ensure a smooth, compliant and cost-effective registration process. Here’s why working with a reputable law firm like Informly is essential:
Comprehensive Legal and Business Advisory Services: A reputable law firm provides more than just business registration. It offers in-depth legal counsel throughout the establishment and operation of the company, addressing potential challenges and ensuring compliance with all regulations. This proactive approach prevents legal complications that could arise after formation.
Ensuring Compliance and Avoiding Costly Risks: Failure to meet regulatory obligations can lead to serious consequences, such as tax penalties or even the suspension of the Enterprise Registration Number by authorities. With a team of experienced lawyers and certified accountants, Informly ensures businesses fulfill all legal and financial requirements, minimizing risks and allowing entrepreneurs to focus on growth.
Transparent and Fair Pricing – No Hidden Costs: Many service providers advertise company formation packages at seemingly low prices, only to exclude statutory fees, publication costs, and other mandatory expenses. This results in significantly higher-than-expected costs for businesses. Informly guarantees transparent pricing with all fees clearly outlined in the legal service contract—no hidden charges, no surprises.
Added Value with Free Legal Support: Beyond company formation, clients of Informly receive ongoing legal assistance in various business matters. This additional support helps entrepreneurs navigate regulatory changes, protect their interests, and resolve legal issues efficiently.
Professional Services at Competitive Rates: Engaging a specialized law firm ensures that businesses receive expert legal guidance at reasonable and cost-effective rates. Compared to general consulting firms that lack deep legal expertise, working with Informly means professional, efficient, and legally sound services tailored to each business’s needs.
==> See morre: Setup company in Vietnam
When should a company be established?
Regular demand for VAT invoices: If your customers regularly request VAT invoices to claim input tax, incorporation is a must. This is a strong indicator of a business operating at a level that requires formal accounting.
Contractual Requirements: When partners, suppliers, or customers prefer or require dealing with a legal entity, incorporation becomes crucial. It provides a level of legitimacy and trust, making business transactions smoother.
Formal Accounting and Compliance: If your business requires clear, structured, and compliant accounting practices for internal management, investor relations, or regulatory purposes, a company structure is the most suitable option. It provides a framework for financial reporting and transparency.
Liability Protection: A key advantage of incorporating is the separation of personal and business liabilities. A company structure offers a degree of protection for personal assets from business debts and lawsuits (though this isn’t absolute and depends on the specific legal structure and circumstances). This is especially important as the business grows and risks increase.
Raising Capital: If you plan to seek investment from venture capitalists, angel investors, or banks, they often prefer or require investing in a formally incorporated entity. A clear legal structure makes the investment process more straightforward.
Building Credibility and Brand Image: Operating as a company can enhance your business’s credibility and professional image, especially when dealing with larger clients or in competitive markets.
Long-Term Business Vision: If you envision your business growing significantly and operating for the long term, establishing a company early on can save time and effort later. It sets a solid foundation for future expansion.
Tax Advantages (Potentially): While you mentioned some tax benefits, it’s important to consult with a tax professional. The tax implications of incorporating can be complex and vary depending on the specific business, its location, and applicable regulations. While there might be some advantages like loss carry-forward, there are also additional compliance requirements. Don’t assume tax benefits without professional advice.
==> See more: Company registration in Vietnam
Requirements for Establishing
Forming a company is a simple process, as long as the following conditions are met:
- The founder must be at least 18 years old.
- There must be no legal restrictions preventing the individual from establishing a business entity
Additionally, businesses can be registered in any province or municipality without residency or permanent address requirements.
Except in specific regulated industries, there is no legal limit on the number of companies an individual can establish. If you are considering starting your own business, Informly is available to provide professional guidance and support throughout the process.
==> See more: Accounting services
Documents required to establish a company
At Informly, we frequently receive inquiries from clients regarding the documentation required for company formation in Vietnam. In accordance with the Vietnamese Law on Enterprises 2020 and Decree No. 01/2021/ND-CP on Enterprise Registration, the following documents and information must be prepared when applying for an enterprise registration certificate:
- Identification Documents: Notarized copies of the national identification card, citizen identification card or valid passport of the company’s founding members, shareholders and legal representatives. If the legal representative is appointed but is not a shareholder or member of the company, their identification documents must also be included.
- Company Information: Details such as the company’s proposed name, registered address, charter capital, and business activities. Providing this information enables Informly to offer tailored legal guidance and prepare the necessary registration documents on behalf of our clients.
- Office-Related Documents: Documents verifying the company’s head office, including lease agreements, loan contracts, ownership certificates, or any other legally recognized proof of the right to use the premises. While these documents do not need to be submitted during the registration process, they should be retained by the company for potential inspection during its operation.
By leveraging the information provided by our clients, Informly offers comprehensive legal assistance, ensuring compliance with all necessary procedures for company establishment. Additionally, we provide guidance on post-registration requirements and regulatory obligations to facilitate smooth business operations.
Procedures for Establishing a Company in Vietnam
For foreign investors, the first step in setting up a business in Vietnam is obtaining an Investment Registration Certificate (IRC). Please refer to the attached link to our website for further details.
To ensure a smooth company establishment process and compliance with legal requirements, the following steps should be followed:
Step 1: Prepare all necessary documents for company registration, including investment and business-related paperwork as required by law.
Step 2: Submit the company establishment documents to the relevant authorities and pay the required disclosure fees.
Step 3: Upon approval, the Enterprise Registration Certificate (ERC) will be issued, officially recognizing the company’s legal existence.
Step 4: Engrave the company’s official seal in accordance with Vietnamese regulations.
Step 5: Provide customers with guidance on necessary post-establishment procedures, including tax registration and compliance matters.
Step 6: Offer legal advisory services and support for tax declarations and compliance matters as requested by customers.
Step 7: Obtain additional operational licenses or permits required for the company’s specific business activities.
==> See more: Bookkeeping in Vietnam
Basic taxes that companies must pay in Vietnam
- License fee:
- Under VND 10 billion: VND 2 million/year.
- From VND 10 billion and above: VND 3 million/year.
- Value added tax (VAT): Calculated based on the difference between the company’s output and input.
- Corporate income tax (CIT): 20% of the company’s profit.
- Import-export tax: Applied when there are import-export activities.
- Resource tax: Applied when using natural resources.
- Special consumption tax: Applied to conditional business lines.
Post-Establishment Procedures for Businesses
Once a business receives its Enterprise Registration Certificate, it must complete several mandatory steps in accordance with the Law on Enterprises 2020:
- Open a corporate bank account.
- Register a digital signature for electronic tax filing and online tax reporting.
- Declare and pay the business license fee.
- Create and display company signage at the head office.
- Obtain an electronic signature for tax-related transactions.
- Request the issuance of electronic invoices.
To simplify these processes, businesses can rely on Informly for expert guidance on company registration, tax compliance, and accounting matters.
==> See more: Representative office in Vietnam
Reasons why customers should choose to use Informly’s company establishment service
- Professional & experienced – A team of experts with deep knowledge of law and business procedures.
- Fast & comprehensive – Processing all documents and licenses, helping customers save time.
- Reasonable and transparent costs – No hidden costs, ensuring optimal budget.
- Legal compliance – Ensuring businesses operate legally, avoiding legal risks.
- Long-term support – Tax, accounting, and legal consulting after establishment helps businesses operate effectively.
FQA?
Question 1: Can I choose the date displayed on the Business Registration Certificate?
According to current regulations, enterprises cannot proactively choose the date displayed on the Business Registration Certificate. The date on the Certificate will be the date the Business Registration Office under the Department of Planning and Investment reviews the application and issues the Certificate.
However, enterprises can estimate this date based on the processing time of the Business Registration Office. Normally, this time is about 3-5 working days from the date of submission of valid application.
Note:
The choice of the date of submission may affect the date of issuance of the Certificate, but there is no guarantee that the date you want will be printed on the Certificate.
If you have special requests regarding the date of establishment, you can contact the Business Registration Office for support.
Question 2: Where to submit the application for company establishment?
- For individual business households: Submit to the People’s Committee of the district where the business household is headquartered.
- For companies: Submit to the Business Registration Office – Department of Planning and Investment where the enterprise is headquartered.
Question 3: Does establishing a company require permanent residence?
Establishing a company does not require the founder to reside permanently in the locality where the company is headquartered. Enterprises can be established in any province or city across the country.
Question 4: How much capital is needed to establish a company?
The current Enterprise Law does not stipulate a minimum charter capital when establishing a company. Enterprises decide and are responsible for their charter capital.
However, some industries have statutory capital requirements. In this case, enterprises need to meet the statutory capital regulations of that industry.
Question 5: Can an apartment building be registered as a company’s headquarters?
According to current regulations, apartment buildings and collective houses are not eligible to register as the company’s head office.
Question 6: Basic taxes that must be declared and paid after establishing a company
- Business license fee: Pay annually.
- Value added tax (VAT): If there is business activity.
- Corporate income tax (CIT): If there is profit.
Question 7: If a company has no revenue or expenses, does it need to declare and pay taxes?
Even if there is no revenue or expenses, the company must still declare taxes and submit reports according to regulations. Specifically:
- VAT declaration: Submit VAT declaration on time, even if there are no input or output invoices.
- Invoice usage report: Declare even if VAT invoices have not been issued.
- Year-end financial reporting: Prepare and submit year-end financial reports, even if there is no business activity.
If you have any questions or concerns regarding legal issues or necessary procedures to establish a company, please contact Informly by phone at 090 739 2969.
