Registering a Vietnamese company is an area absolutely packed full of challenges with foreign investors. At GBEE, Clients will be supported in establishing company in Vietnam, with a strong commitment from GBEE that GBEE shall prepare dossier for company registration and submit the dossiers on behalf of Clients. Due to over-complicated requirements from the government, GBEE ensure our company documentation is of the highest quality, always up-to-date and compliant with current regulations and legislation.
A popular way for foreign companies to retain 100 per cent foreign ownership in Vietnam is to open a representative office. These offices do not have a separate legal identity but are treated as an extension of the foreign company, which remains liable for their activities. As per stated in Vietnam laws, a representative office is not permitted to earn profits within Vietnam and the activities it may undertake in Vietnam are limited to marketing and/or promoting its foreign parent company products and services.
A Representative Office (unlike a Branch Office) generally does not engage in any taxable business activities (i.e., it does not derive any income from its activities in Vietnam) and also easier to set up rather than a foreign owned company. However, it is important to understand that legal requirement for setting up an entity in Vietnam is often difficult to discern, making the foreigners cannot apply for a representative office by themselves. As each situation is different, GBEE shall carefully review the business activities you are looking to do while in the Vietnam with you, and prepare the legal required documents that ensure your success in opening a representative office fast and properly
A wholly foreign-owned enterprise (WFOE) is a company established in Vietnam according to Vietnamese laws and wholly owned by one or more foreign investors. A WFOE can be either a limited liability company or a joint stock company meaning that the liability of the shareholders is limited to the assets they brought to the business. Unlike the simpler representative office setup which is subject to a number of limitations, a WFOE can make profits and issue local invoices in VND to its customers, which is crucial as invoices are the basis for obtaining tax deductions in Vietnam.
When applying to set up a foreign owned company, there are three distinct WFOE needs to concern on:
While all three structures share the same legal identity, they differ significantly in terms of setup procedures, costs and the range of commercial activities in which they are allowed to engage. That’s one of the main reasons leading foreigners to challenging barriers when submitting application and obtaining the business certificates by themselves. At GBEE, our expert teams who have qualified experience in dealing with service, trading and manufacturing company incorporation can assist you in achieving all compulsory certificates for your business in Vietnam within limited times and competitive prices.
A Joint Venture is a business arrangement in which the participants create a new business entity or official contractual relationship and share investment and operation expenses, management responsibilities, and profits and losses. In Vietnam, it is an entity comprised of two or more companies that associate to carry out a project and is encouraged by the Vietnamese authorities as this form of company can provide the local enterprises’ exposure to advanced technology and new management skills. In return, foreign investors can enjoy low labor costs, low production costs and a potentially large Vietnamese market share. Despite being a simple form of doing business in Vietnam, the process of finding matched local partner for venture also put a lot of pressures on foreign investors, excluding the fact that paper works are even more complicated. For further requirements regarding your joint venture in Vietnam, please let GBEE help you.