Open Business in Vietnam: Establishing a Company
What do I have to do to start a company? What are the documents and procedures for applying for a business license? What should be noted? Let’s find detailed answers to the above problems through the following article about open business in Vietnam.
Guide to setting up a company – open business in Vietnam
When opening a company, you always need to prepare a lot of related issues, information, and procedures. However, because not everyone is knowledgeable about these procedures, many people ask the question of what to do to set up a company.
In fact, when setting up a company, you will definitely need to conduct business registration and apply for a license to open a company. However, before doing this procedure, you need:
Prepare capital and declare charter capital
Capital is an important issue when starting a business. In fact, because the field is very diverse, the company’s establishment capital will depend on the financial and economic capabilities or conditions of the business and the capital requirements of each industry when registering for business. However, businesses should prepare sufficient minimum capital because when opening a company, it needs a lot of spending.
Enterprises must declare charter capital when opening the company. Normally, enterprises can declare their own charter capital depending on their wishes as well as their financial capacity, because the law does not stipulate the charter capital of enterprises when establishing a company. Businesses should not declare too low charter capital when establishing a company, because it will affect a part of the company’s reputation in the eyes of customers or partners.
However, if an enterprise registers for a business that requires capital, for example, a business that requires legal capital or margin, it is necessary to register a minimum charter capital equal to the legal capital. , so the business registration can be carried out.
Choose the type of business
Enterprises must be based on the number of capital contributors, the amount of capital contributed, their own desires, etc., to choose for the company a suitable type of business, capable of helping the company develop strongly, and avoid the pitfalls. future risks. Currently, businesses can establish a company in the form of limited liability or share or partnership, private.
Choose a legal representative – open business in Vietnam
The legal representative is a person who plays an important role in the company, is an individual representing the enterprise to exercise the rights and obligations arising from the transaction of the enterprise and represents the enterprise as a plaintiff. , the defendant, the person with related interests and obligations before the Arbitrator, the Court, and other rights and obligations as prescribed by law. Therefore, businesses in Hanoi should choose a person who is qualified, capable, experienced, and can be trusted.
This position of legal representative can be taken by the business owner, director, general director, president, or manager. A business can have 1 or more representatives depending on the type of company and the representative can change after the company is established.
Choose a registered business line for open business in Vietnam
In order for the company to be able to carry out its activities, it must register the appropriate business lines related to its activities. Business code lookup must be performed to be able to register a business.
In addition, when choosing a business to register, businesses must note:
- If you choose a profession that does not require conditions, you can go into business immediately after establishing the company without having to prepare relevant conditions or apply for a business license.
- If you choose a profession that requires conditions, you must ensure the necessary requirements, then apply for a business license before you can start doing business.
Choose your company address
The company needs to have a business address to be allowed to conduct business registration. Do not use a fake address as a company address.
Businesses can use a private house with a certificate of ownership or rent an office to set up a company address. The company’s address must be in the territory of Vietnam, with house number, alley, district, district, city … clear and accurate. The address of the company must ensure the general regulations, and avoid placing the company address in an apartment complex or a dormitory for living purposes only.
Name the company upon incorporation
The company needs to have its own name and this proper name must be unique and must not be identical or similar to previously registered businesses. Enterprises are not allowed to use the names of functional agencies, or state management agencies to name the company.
Enterprises must prepare a full company name structure, including the type of company + proper name. The type will be one of the types mentioned in the type of business, while the proper name will be given by the business itself. To avoid duplication with other companies, businesses can use abbreviations or English names but must ensure that the company name will not cause confusion, without adding prefixes, suffixes, or missing symbols. culture in the name.
Guidance in preparing procedures and documents for business registration to establish a company
You prepare a company registration dossier, specific documents include:
- An application for a business registration license (incorporation).
- Company rules
- Identity card, passport, citizen identification card notarized copy for individuals and business registration certificate, establishment decision… for organizations.
- List of shareholders and members who own shares and will contribute capital to the company.
Enterprises bring documents to submit to the Business Registration Department at the Department of Planning and Investment. The Department of Planning and Investment will consider and issue a business registration license to the enterprise after 3-6 days if the application is valid.
You can read the previous article here: Economy in Vietnam: New Signals
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Q: What is the currency in Vietnam?
The currency in Vietnam is the Vietnamese dong (VND). The exchange rate as of February 2023 is around 23,000 VND to 1 USD.
Q: What are the main industries driving Vietnam’s economy?
Vietnam’s economy is driven by several key industries, including manufacturing, agriculture, and services.
Q: What is the current state of the economy in Vietnam?
Vietnam’s economy has been experiencing rapid growth in recent years, with a 7.11% growth rate in 2019 before being impacted by the COVID-19 pandemic in 2020.