Can foreigners establish an enterprise in Vietnam?

Foreigners are allowed to establish enterprises in Vietnam in case of meeting speicific conditions

Can foreigners establish an enterprise in Vietnam? 

Foreigners are allowed to establish enterprises in Vietnam but must meet the following conditions:

1. Subject conditions

- Full age of majority

- Full civil capacity

- Not subject to criminal prosecution

- Not currently serving a penalty

- Nationality of a WTO member country

2. Industry and business are not allowed to invest in Vietnam and business is restricted

According to Appendix 1 of Decree 31/2021/ND-CP For example

For example:

- Enterprises established by foreigners will not be allowed to provide services of sending workers to work abroad under contracts (labor supply);

- Foreigners are not allowed to provide inspection and certification services for means of transport.

3. Market access conditions for foreign investors

- compliance with commitment 318/WTO/CK corresponding to the scope of Vietnam's operations and business services;

- meet legal conditions (on charter capital ownership ratio of foreign investors in economic organizations; investment form; scope of investment activities...)

For example:

- Services packaging printing in other business services, with restrictions on charter capital ownership ratio and investment form, specifically:

• Charter capital ownership ratio of foreign investors in the organization economic: does not exceed 51%;

• Investment form: joint venture.

- Construction works in the construction services industry, with restrictions on subjects and scope of activities, specifically:

• Foreign investors: must be legal entities of a WTO member or a country ASEAN member;

• Scope of activities: construction of high-rise buildings, construction of civil engineering works, completion of installation, completion of high-rise buildings, other construction works.

4. Procedures For Establishing A Foreign Capital Company In Vietnam

There are 2 ways to open a foreign company in Vietnam:

4.1. Method 1: Establish a company with Vietnamese capital and then transfer;

- Step 1: Register to establish a company with 100% Vietnamese capital;

- Step 2: Carry out procedures for transferring capital to foreigners

4.2. Method 2: Establish a company with direct foreign capital from the beginning.

- Step 1: Carry out procedures to apply for an investment certificate for foreigners;

 - Step 2: Register to establish a company or business.

Note: An enterprise shall have at least one legal representative residing in Vietnam. Whenever this representative leaves Vietnam, he/she has to authorize another Vietnamese resident, in writing, to act as the legal representative.

For more information, please contact:

DRAGON LAW FIRM

Office: Room 6, Floor 14, VIMECO Building, Pham Hung Road, Trung Hoa Ward, Cau Giay District, Hanoi

Branch: No. 102 Lot 14, Le Hong Phong Road, Dang Lam Ward, Hai An District, Hai Phong City

Hotline: 1900.599.979

Mobile: 0983.019.109 / 0974.422.331 / 098.174.3559 (foreign clients)