Additional Requirements for Establishing a Company in Vietnam
Minimum Capital Requirements:
Vietnam’s business landscape offers flexibility in terms of capital requirements, as most sectors do not have specific minimum capital requirements. Instead, the Department of Planning and Investment will evaluate your company’s registered capital. This assessment ensures that your capital adequately covers business expenses until your company generates sufficient revenue. However, it’s important to note that certain sectors, such as finance, banking, insurance, fintech, language centers, vocational schools, and medical clinics, may have specific capital requirements. The registered capital amount will be prominently displayed on your Business Registration Certificate and can impact how your business is perceived by other companies.
Charter Capital and Total Investment Capital:
Charter Capital encompasses the total value of capital and assets provided by the owners during the company’s establishment. It is crucial to register both the charter capital and total investment capital, which includes any shareholder loans or external funding sources, with the local licensing authority. It’s worth mentioning that you can adjust the charter capital sum with advance approval from the local licensing authority, allowing flexibility as your business grows.
Capital Contribution Schedules:
Investors are required to make capital contributions within 90 days from the Foreign-Invested Enterprise (FIE) establishment date, unless otherwise approved by the licensing authority. Timely capital contributions are essential to keep your business operations on track.
Transferring Capital to the FIE:
Foreign investors must open a specialized foreign currency bank account in a legally licensed bank within Vietnam to facilitate the transfer of capital into the country. This special-purpose account ensures transparent tracking of capital flows in and out of Vietnam, enabling domestic payments and transactions.
Registered Address and Resident Director:
Having a legal address in Vietnam is a prerequisite for incorporating a company, especially for businesses that require a physical presence. In some cases, virtual office addresses may be suitable for service-based businesses. The Department of Planning and Investment may verify the address during the incorporation process. Additionally, every company must designate at least one Legal Representative with a residential address in Vietnam. If foreign nationals are involved in your company, they will need to obtain a work permit for Vietnam, which can be obtained during or after the incorporation process.