CAN FOREIGN INDIVIDUALS ESTABLISH A COMPANY IN VIETNAM? WHAT ARE THE CONDITIONS?
QUESTION
Dear TLK Law Firm, I have questions and hope to hear from you as follows: I am a Thai citizen and planning to invest in establishing a company in Vietnam. However, I need to clearly understand the provisions of Vietnamese law on whether foreign individuals can establish companies in Vietnam and what conditions are required when established. Looking forward to your company's answer. Thank you!
RELATED ARTICLES
1. What types of periodic reports must be submitted by foreign companies?
2. What industries can foreign-invested enterprises operate in?
3. What are the benefits of foreign-invested enterprises?
Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Investment Law No. 61/2020/QH14 passed by the National Assembly on June 17, 2020;
2. Decree No. 31/2021/ND-CP issued by the Government on March 26, 2021 detailing and guiding the implementation of a number of articles of the Investment Law;
3. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
In the trend of global economic integration and policies to attract investment activities, domestic and foreign investment activities are being promoted and growing. One of the big issues that arise when foreign individuals participate in the Vietnamese market is whether they are allowed to establish a company in Vietnam and what are the conditions to be met if established? This is a question that many customers send to TLK Law Firm.
Therefore, through this article, we will answer your questions about "Can foreign individuals establish a company in Vietnam?" What are the conditions to establish a company in Vietnam? ”
Photo 1. Can foreign individuals establish a company in Vietnam? What are conditions?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO CONDITIONS FOR FOREIGN INDIVIDUALS TO ESTABLISH A COMPANY IN VIETNAM
1. Are foreign individuals considered foreign investors?
Pursuant to the Investment Law 2020, foreign investors are individuals with foreign nationality or organizations established under foreign laws conducting business investment activities in Vietnam. In addition, an economic organization is an organization established and operating under the provisions of Vietnamese law, including enterprises, cooperatives, cooperative unions and other organizations carrying out economic investment activities.
Thus, foreigners who make investments and meet legal regulations are allowed to establish economic organizations.
2. Conditions for foreign individuals to establish companies in Vietnam
Pursuant to the Investment Law 2020, foreigners to establish a company in Vietnam need to carry out procedures to apply for an investment certificate and meet the following conditions:
(1) Market access for foreign investors includes:
- Charter capital ownership ratio of foreign investors in economic organizations;
- Investment form;
- Scope of investment activities;
- Capacity of investors; partners participating in investment activities;
- Other conditions as prescribed in laws, resolutions of the National Assembly, ordinances, resolutions of the Standing Committee of the National Assembly, decrees of the Government and international treaties to which the Socialist Republic of Vietnam is a party. member.
(2) Must have an investment project and carry out procedures for granting and adjusting the Investment Registration Certificate, except for establishing innovative small and medium-sized startups and innovative startup investment funds according to regulations. provisions of law on support for small and medium-sized enterprises.
Thus, foreign individuals are allowed to establish companies in Vietnam when they meet the conditions of market access, investment projects, and investment registration certificate according to the provisions of Vietnamese law.
3. Market access cases for foreign individuals when opening a company in Vietnam
Pursuant to the Investment Law 2020, foreign individuals when opening a company in Vietnam need to meet market access conditions and market access includes the following cases:
(1) Foreign individuals are not allowed to open companies in Vietnam for industries and professions that do not have market access;
(2) When a foreign individual opens a company in Vietnam operating in a business line that limits market access for foreign investors, he or she must meet the conditions prescribed by the Investment Law 2020;
(3) For the remaining business lines, foreign investors are subject to market access conditions as prescribed for domestic investors.
Thus, foreign individuals when establishing companies in Vietnam have the above conditions to access the market according to the provisions of Vietnamese law.
=> See more: Can a foreign company establish a subsidiary in Vietnam? What are conditions?
Photo 2. Can foreign individuals establish a company in Vietnam? What are conditions?_Hotline: 0972118764
II. SUMMARY OF ANSWER SECTION: CAN FOREIGN INDIVIDUALS ESTABLISH A COMPANY IN VIETNAM? WHAT ARE CONDITIONS?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Foreign individuals are allowed to establish companies in Vietnam according to the provisions of the Investment Law 2020 when meeting the following conditions:
1. Investment certificate has been granted;
2. Market access conditions have been met;
3. Must have an investment project, and carry out procedures for granting and adjusting the investment registration certificate (except for the establishment of innovative small and medium-sized start-up enterprises and creative start-up investment funds according to the provisions of law on supporting small and medium-sized enterprises).
III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time when the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the best legal service provider on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.
IV. SOME QUESTIONS RELATED TO CONDITIONS FOR FOREIGN INDIVIDUALS TO ESTABLISH A COMPANY IN VIETNAM
Question 1: When can foreign investors open companies in Vietnam?
Reply:
Pursuant to the Investment Law 2020, from the date a foreigner is issued a business registration certificate or other document of equivalent value by a competent state agency, the company established by the foreign investor is Investors carry out investment projects according to the provisions of the investment registration certificate.
Question 2: How are investment forms in Vietnam regulated?
Reply:
Pursuant to the Investment Law 2020, types of investment in Vietnam include the following forms:
(1) Investment in establishing economic organizations;
(2) Investing in capital contribution, purchasing shares, purchasing capital contributions;
(3) Implement investment projects;
(4) Investment in the form of BCC contract;
(5) New forms of investment and types of economic organizations according to Government regulations.
Thus, when participating in investment activities in Vietnam, individuals and organizations can choose the above forms according to the provisions of Vietnamese law.
Question 3: How are foreign investment activities regulated?
Reply:
Pursuant to the Investment Law 2020, for each type of investment, foreign investors must meet the conditions and carry out procedures according to the provisions of law when investing in establishing other economic organizations, investing contributing capital, buying shares, buying capital contributions from other economic organizations and invest in the form of BCC contracts if that economic organization falls into one of the following cases:
(1) Foreign investors are holding more than 50% of the charter capital or the majority of partners are foreign individuals for economic organizations that are partnerships;
(2) Economic organization specified in the Investment Law 2020 holding more than 50% of charter capital;
(3) Foreign investors and economic organizations specified in the Investment Law 2020 holding more than 50% of charter capital.
Thus, foreigners participating in economic investment in Vietnam need to clearly understand and properly carry out investment-related activities according to the provisions of Vietnamese law.
Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
Thank you very much!
Administrative Procedures Department - TLK Law Firm
WORK PERFORMED BY TLK LAW FIRM
1. Advise customers on all legal issues related to social life, individuals, organizations, businesses and investors.
2. Providing to customers, representing all legal services related to social life, individuals, organizations, businesses and investors.
INCENTIVES
1. Support customers in connecting and promoting trade during operations.
2. % discount on service fee when customers use the service for the second time.
3. Free legal advice on corporate law for one year (if you are an organization or business).
4. Care and free legal advice on tax and accounting laws for businesses within one year (if you are an organization or business).
5. Provide an internal business management system (if Customer is an organization or business).
LATEST PROMOTION POLICY HERE
We are always ready to be a dedicated companion and a solid legal fulcrum for our customers.
We wish our customers good health and prosperous development!
In case you need advice or use the service, please contact us with the information below:
TLK LAW FIRM
- Tel: +(84) 243 2011 747 Hotline: 097 211 8764
- Email: info@tlklawfirm.vn Website: tlklawfirm.vn
