Starting a business in Vietnam holds immense promise, but navigating the intricacies demands strategic planning and meticulous execution. In this guide, we delve into the key aspects of establishing your enterprise, ensuring you're well-equipped to overcome challenges and seize opportunities. So, what doess dissolving a limited company mean? ACC Group will address your question.
1. INVESTMENT OF CAPITAL IN VIETNAM
This is the biggest expense item to start a business in Vietnam. It is the initial investment in the business that must be made before the business can become self-sufficient. Some companies have specific requirements for the amount of capital to be injected into the business (by law). However, the vast majority of companies do not specify a minimum quantity. During the registration process, investors must make a decision and commit to implementation. This investment capital must be put into business within 90 days from the date of issuance of the business license.
Most investors choose to start a business in Vietnam with a minimum investment of 10,000 USD. In fact, companies with less capital (as little as 3,000 USD to 4,000 USD or 5,000 USD) have been successfully registered, especially for simple businesses like consulting, IT, etc. The size of the owner's capital will also affect the success (or duration) of the business. visa allows him to stay in Vietnam. The higher the capital, the greater the chance of obtaining a long-term residence permit, while the smaller the capital, the higher the likelihood that immigration authorities will refuse to grant a visa.
Note, capital will be released immediately after approval from the company (within 90 days), failure to comply with this deadline will result in heavy penalties for the company and investors.
2. BUSINESS ADDRESS (USING VIRTUAL OFFICE) FOR COMPANY REGISTRATION IN VIETNAM
Virtual offices are accepted for business registration in most major cities in Vietnam such as Ho Chi Minh City or Hanoi. Other cities/provinces may not be as flexible. The price of renting a virtual office depends on the location and quality of the building. This number ranges from $400 to $800 per year. For a Grade A office building downtown (if you need it to brand your business), costs can range from $1,000 to $1,900 per year.
Virtual office services involve the use of an address for business registration, with the business name displayed on-site. It does not include the use of space or rooms on site and is subject to an additional fee.
3. Hire a permanent manager in Vietnam
During the registration process, a company must appoint a resident administrator. If the investor is not in the country at the time of registration, he must authorize or hire someone. You can save on this cost by asking friends/relatives in Vietnam (Vietnamese or non-Vietnamese) to take on this position. This resident director is the legal representative of the company, not necessarily a shareholder of the company. This cost can be zero (if you use your own arrangement) or between $250 and $450 per month if you hire someone for a candidate role.
4. MANAGEMENT FEE FOR BUSINESS REGISTRATION IN VIETNAM
This includes the cost of document preparation (notarization of documents, legalization), state fees and service fees paid to the facilitator or agency that will help you complete the registration process. That's between $100 and $200 (one-time fee).
5. CONSULTING FEES/SERVICE REGISTRATION OF COMPANY IN VIETNAM
Even for a native Vietnamese, starting your own business is difficult. The documents required to register a business are complex and require a thorough understanding of business laws and regulations. Depending on the nature of the business, the investment proposal or the business plan that forms the basis of the business registration application will require different terms and interpretations. Unless you are a qualified business consultant or lawyer, this job requires a lot of time and effort. Our recommendation is to seek professional help. The service fees of different consulting firms/attorneys can range from $900 to $2,500 for a standard, unconditional business registration. For businesses with difficult/conditional conditions (such as recruitment services, logistics, tourism, etc.) that require additional licenses (compared to normal licenses), the fee will be higher and the time will be longer. .
Different consulting firms have different ways of tailoring their services, which will largely include opening a bank account and initial tax registration as well as obtaining two business licenses (IRC and BRC).
Remember that the cheapest option is not necessarily the best. You need to strike a balance between cost and quality. We've seen a lot of cases where service went wrong, customers chose the lowest cost service and ended up being left out and not providing accurate information, resulting in hefty fines or damages. economic.
6. TAX ON BUSINESS IN VIETNAM
After successful registration, the business must pay license tax. This license tax is an annual fee payable in the first month of the fiscal year (applicable from the 2nd year of operation). During the 30-day grace period, amounts between $100 and $200 will be deposited in the state treasury. Failure to pay this tax will result in a penalty or tax code lockout.
When the company starts to have income and profit, it will have to pay additional taxes like VAT (8-10%), CIT (20% on profit), FCT (3-5%), etc. Learn more about corporate tax in Vietnam
7. IMPLEMENT AN ACCOUNTING SYSTEM FOR YOUR COMPANY IN VIETNAM
Once a company is registered, it is responsible for submitting periodic reports to the government. This can be a monthly or quarterly report.
These reports adhere to specific templates, are written in Vietnamese and closely follow accounting documents. Therefore, you must configure the system so that these reports can be submitted on time. Accounting system configuration includes registering e-signature tokens, e-invoicing, and the company's accounting software. Businesses that plan to hire full-time employees should also sign up for a Social Security account and software.
At VNBG, we include this configuration step in our Accounting and Payroll service, which will be provided to customers immediately after completing company registration (or before). Our customers are always aware of the hidden costs of working with us. There are no hidden fees or surprise costs.
Q&A
Q1: What is the Minimum Investment Required to Start a Business in Vietnam?
A: While some industries may have specific capital requirements outlined by law, many do not specify a minimum. However, a popular choice is to start with a minimum investment of $10,000. Success stories exist with even lower amounts, particularly for simpler ventures like consulting or IT.
Q2: Are There Penalties for Delayed Capital Injection?
A: Yes, there are. The capital must be injected into the business within 90 days from the date of business license issuance. Failure to meet this deadline incurs heavy penalties for both the company and investors.
Q3: What are the Costs Associated with Setting Up a Company?
A: The costs include:
- Business Address (Using Virtual Office)
- Hiring a Permanent Manager in Vietnam
- Management Fee for Business Registration
- Consulting Fees/Service Registration of Company
- Tax on Business in Vietnam
- Implementing an Accounting System for Your Company
Q4: Can I Use a Virtual Office for Business Registration?
A: Yes, virtual offices are widely accepted for business registration in major cities like Ho Chi Minh and Hanoi. The cost varies depending on location and quality, ranging from $400 to $800 annually.
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