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| Vietnam Company Set Up | |||||||
Vietnam company set up remains difficult despite an easing of licensing restrictions and bureaucracy. The following information will help you determine whether it will serve your business needs to undertake Vietnam company set up.
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Advantages of Vietnam Company Set Up
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| 1. | Investors undertake Vietnam company set up to legitimately tap opportunities in this emerging market.
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| 2. | Only one shareholder and director is required to undertake Vietnam company set up.
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| 3. | Vietnam's population of 82 million offers a ready market for investors considering Vietnam company set up.
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| 4. | Ongoing market reforms will continue to prefer entrepreneurs who undertake Vietnam company set up. In addition, Vietnam's accession to the World Trade Organisation (WTO) in early 2007 will further encourage investors to set up a company Vietnam. | ||||||
| 5. | There are no minimum capital requirements for Vietnam company set up. | ||||||
| 6. | Vietnamese companies recording tax losses can carry them forward for up to 5 years.
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| 7. | The country offers investors politically stable environment in which to do business following Vietnam company set up.
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| 8. | Foreign investors who complete Vietnam company set up can own 100% shares in the business in certain sectors.
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Disadvantages of Vietnam Company Set Up | |||||||
| 1. | Vietnam company set up requires the entity to be registered and regulated at provincial level, meaning tighter restrictions. | ||||||
| 2. | The corporate tax rate is 28%. However, preferential rates of 20%, 15% and 10% apply if the enterprise meets certain specific criteria. Preferential rates apply if the investment is made in one of the activities or in one of the locations identified by the Government to be eligible for preferences. The tax incentive period begins from the date that business operations commence, and its does not include the basic construction period.
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| 3. | To obtain a representative office licence in Vietnam, a foreign company must have been in operation for at least one year from its date of incorporation in its home country. | ||||||
| 4. | Foreign companies who undertake Vietnam company set up are currently prohibited from operating 100% foreign-owned entities for the distribution of imported and domestically-produced goods. | ||||||
| 5. | Foreign investors considering Vietnam company set up should note that all foreign-invested companies in the country must have their financial statements audited annually. | ||||||
| 6. | Investors undertaking Vietnam company set up experience complicated and poorly-enforced company law. | ||||||
| 7. | The World Bank and US-based Heritage Foundation have both ranked Vietnam as a difficult place to do business. (View the World Bank survey and the 2010 Index of Economic Freedom) | ||||||
Contact Us | |||||||
For more information on Vietnam company set up, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120. | |||||||
Back to Vietnam company formation page | |||||||
