What should foreign investors pay attention to when they wish to establish a business organization in Vietnam?

What should foreign investors pay attention to when they wish to establish a business organization in Vietnam?

Despite the negative effects of Covid-19 on the economy, in recent years, Vietnam has been considered a "bright spot" in attracting investment capital from abroad. However, many foreign investors are yet to fully comprehend unacquainted markets such as Vietnam, especially regarding procedures for establishment of economic organizations. The following article will point out noteworthy matters to foreign investors wishing to set up businesses in Vietnam.

1. Conditions for foreign investors to establish business organizations in Vietnam

When foreign investors decide to establish business organizations in Vietnam, they shall satisfy the following requirements:

- Regarding nationality: Foreign investors must be nationals of WTO membering countries. Being a lawful citizen, having full proof documents of legal status for both individuals and organizations, and being verified by the consulate.

- Regarding financial conditions: Investors who want to establish a company need to prove their financial capacity and investment ability.

- Regarding the fields, sectors, and trades in which investment is permitted: Foreign businessmen may only establish business enterprises within the areas permitted by Vietnamese laws. For industries and fields that require business conditions, the appropriate conditions must be fully satisfied. All needed licenses must be obtained, such as investment registration certificate, business registration license, etc. After having fulfilled all requirements and needed steps, a business may then be established.

- Foreign investors must commit to conduct business without damaging the cultural values, fine customs, traditions, history... of Vietnam.

- Foreign investors must provide information about location of the projects, types of land use documents, and duly leased offices.

2. The process of establishing a business organization in Vietnam for foreign investors

To establish a foreign-invested business organization in Vietnam, it is necessary to follow a coherent order and prepare needed documents beforehand. Specifically, there are 5 steps to go through:

Step 1: Investors must prepare and complete enterprise information such as enterprise name, legal representative, operation address, type of enterprise, and charter capital prior to enterprise establishment.

Step 2: Foreign investors must prepare investment registration dossiers for foreign businessmen for submission at investment management agencies.

Step 3: Apply for business registration licenses and enterprise establishment.

Step 4: Publish business information and complete post-establishment procedures.

Step 5: Complete the conditions and apply for a business license.

Legal consulting services on the establishment of a business organization in Vietnam

HTC Vietnam Law Firm provides the following consultation on matters relating to the establishment of a business organization in Vietnam. Such services are as follows:

- Consulting and offering the solution to legal matters related to the establishment of business organizations in Vietnam;

- Consulting on contracts and signing contracts during the process of establishing business organizations in Vietnam;

- Performing as authorized representative to participate in dispute settlement related to the establishment of a business organization in Vietnam.

Service Quality Commitment

The following are HTC Vietnam Law Firm’s Principles of Operation: Conscientious - Effective - Reliable. HTC Vietnam Law Firm assures service quality, specifically as follows:

- Ensure that the work is carried out according to the agreed schedule, in accordance with the law, and in accordance with the code of ethics and Codes of Conduct of Vietnamese lawyers.

- Give priority to customers' interests, and make every effort to provide customers with the best quality of service.

- Respect the confidentiality of information that clients provided and information pertaining to the clients.

We are looking forward to a long-term cooperation.

Best Regards!

(Writer: Vũ Thị Thanh Nhà/184; 31/03/2022

Translator: Nguyễn Thị Liên)