Forms of Setting up company in Vietnam

 Forms of Setting up company in Vietnam

According the Vietnam Law on Enterprises, there are four common types of companies:

-Private enterprise

-Partnership

-Joint stock company

-Limited liability company

-Private enterprise is a business run by a single person who is responsible for all of its operations and owns all of its assets;

-Partnership is an organization in which (i) at least two partners co-own the business and operate jointly under a single name; There may be limited partners in addition to general partners; ii) A partnership's general partners must be individuals who are fully responsible for the partnership's obligations with their entire property: iii) Limited partners are only responsible for the partnership's debts up to the amount of their capital contribution;

-Joint stock company is an enterprise where i) Its contract capital is partitioned into equivalent bits known as shares; ( ii) Shareholders may be individuals or organizations; the base number of investors will be three and will not be confined to a specific most extreme number; ( iii) Its shareholders are only responsible for the debts and other property obligations of the company up to the value of their capital contribution; ( iv) Shareholders will be free to transfer their shares in accordance with the law;

-Limited liability company (also known as a single-member or multi-member limited liability company). A one-member limited liability company is an enterprise which is owned by one organization or individual (hereinafter referred to as the company owner); Within the company's charter capital, the owner is responsible for the company's debts and other property obligations. A business is a limited liability company if: i) Members may be individuals or organizations; The number of members in total cannot be more than fifty; ( ii) Individuals are answerable for obligations and other property liabilities of the undertaking inside how much capital that they have resolved to add to the endeavor; ( iii) The members' capital shares can only be transferred in accordance with the law.

ANT Lawyers is a law firm in Vietnam with international standards, recognized by IFLR1000 on Financial and Corporate practice. The firm provides a wide range of legal services, including M&A, corporate establishment, business advisory, tax advisory, dispute resolution for multinational and domestic clients.

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Vietnam is an attractive destination for startups

 According to Bloomberg, Vietnam is an attractive destination for startups in 2023

The international press reported that Vietnam's economy has been struggling domestically and internationally in 2023. However, there are still encouraging signs regarding the economy's potential for growth. In the meantime, Vietnam is also focusing on long-term economic growth to encourage startups to start businesses, invest, and do business in Vietnam.

As the boom period of reopening following COVID-19 comes to an end in 2023, the economy is returning to a long-term growth trajectory. Vietnam wants to spend 7% of GDP on infrastructure this year to support economic growth and ensure that FDI will continue to flow into the country for years to come.

In the future, Vietnam's economy is being strengthened by foreign direct investment. Vietnam is an ideal location for tourists and foreign investors to set up company in Vietnam due to its favorable business climate, stable political environment, sustainable macroeconomic development, abundant labor force, and low cost.

According to experts, the situation is very bad all over the world, but Vietnam has been recovering and getting back on track with its development. There will still be obstacles, such as the possibility of a recession and global protectionism, which reduces export demand. However, there will still be many advantages, and foreign investment, investment in human resources, and infrastructure, will drive growth in a variety of ways. In addition, the recovery of consumer and business confidence is expanding rapidly. Domestic demand has returned to normal.

According to Bloomberg, Vietnam is a desirable location for startups due to its abundance of skilled engineers, low labor costs, and rapidly expanding economy. By 2030, Vietnam wants to make Ho Chi Minh City a "magnet" for technology investments and a digital economy.

Vietnam is now a major hub for manufacturing and a crucial link in the global supply chain. As a result, increasing automation is crucial for economies and businesses. One of the primary drivers is the rapid improvement in labor productivity and digitization of the value chain. Vietnam's economy has great potential for rapid growth and digital transformation across all sectors.

Concerning the factors that ensure Vietnam's growth, there is a consensus. These elements incorporate speeding up primary and institutional changes, profoundly taking part in new-age economic alliances, improving unfamiliar speculation fascination, speeding up computerized financial change, and profound mixing into the worldwide store network.

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How Foreigners Can Easily Own a House in Vietnam?

 How Foreigners Can Easily Own a House in Vietnam?

Because making an overseas property investment is a significant decision, it is recommended that the investors consult with real estate dispute lawyers in Vietnam for assistance in determining the developer's eligibility, construction permits, and other project-related legal documents. To ensure the protection of rights, reduce risks, and ensure compliance, it is essential to review the transaction documents in relation to the deposit agreement, sales agreement, and any other agreements the developer might propose.

On November 25th, 2014, the National Assembly of the Socialist Republic of Vietnam has approved the Housing Act 2014. The fact that a foreigner can buy a house in Vietnam is one of the most notable new changes.

Houses can be owned by foreign organizations and individuals in Vietnam:

-Overseas organizations and individuals putting resources into lodging development under projects in Vietnam as per the arrangements of the Housing Law and related authoritative archives;

-In Vietnam, businesses with foreign investment capital are operating, as are foreign investment funds, foreign bank branches, branch or representative offices of foreign businesses, and foreign investment funds.

-Foreign citizens are allowed to enter Vietnam.

What are forms of ownership housing foreigner in Vietnam?

-investment in the construction of housing in Vietnam as part of the project, in accordance with the Housing Law and related legislation;

-Apartments and single-family homes are included in the investment projects of housing construction. Commercial housing can be purchased, leased, donated, or passed down. (With the exception of housing projects aimed at safeguarding Vietnam's national defense and security, as mandated by the Government of Vietnam).

What are conditions, rights and obligations of foreigner when buy house in Vietnam?

For people or associations putting resources into lodging development under a project in Vietnam while seeking to possess houses in Vietnam they should fulfill the accompanying circumstances:

-Have an investment certificate

- Have housing developments constructed within the project in accordance with housing law.

When looking to buy a house in Vietnam, foreign businesses with foreign investment capital, branch or representative offices of foreign businesses, foreign investment funds, and foreign bank branches must meet the following conditions:

-Have investment certificates or documents relating with the license to operate in Vietnam gave by the skillful State offices of Vietnam.

Foreign individuals buying a house in Vietnam

-Allowed entry into Vietnam, but do not entitled to diplomatic and consular privileges and immunity.

Foreign businesses with foreign investment capital, branch or representative offices of foreign businesses, foreign investment funds, and foreign bank branches in Vietnam, as well as individual foreign buyers of homes in Vietnam, are eligible to own homes in Vietnam when:

-Rent, buy, donate, inherit, or own no more than 30% of an apartment building's units; Foreigners are not permitted to buy, lease, donate, inherit, or own more than two hundred fifty individual houses, including villas and semi-detached houses, in areas with a population equivalent to that of ward-level administrative;

-In accordance with the terms of the contract of sale, lease, donation, or inheritance, foreign individuals are entitled to own a home for a maximum of 50 years from the date of issuance of the certificate of ownership, which may be extended as required by the government. The certificate must also specify the period of ownership of the property;

-In the case of foreign individuals married to a citizen of Vietnam or hitched to a Vietnam resident got an outside country, they can possess the houses for a long and stable term. Additionally, like Vietnamese citizens, they enjoy owner rights;

Foreign organizations shall have the right to own a house in accordance with the contract of sale, lease, donation, or inheritance, but not longer than the period outlined in the certificate of ownership, which may include an extended period. The time it takes to own a house starts on the date the certificate of ownership is received and is listed on the certificate.

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7 Fundamental steps to comply with Vietnam laws and set up a business

 7 Fundamental steps to comply with Vietnam laws and set up a business

In terms of business activities, Vietnam's economy is becoming more diverse, and business regulations are also constantly being improved. As a result, foreign investors are free to select the appropriate business. Therefore, when foreign investors discover business opportunities, setting up a company in Vietnam there is always a topic of great interest.

7 fundamental steps to set up a business include:

-Set up a business in Vietnam

-Publish the contents of business registration

-The enterprise conducts stamp engraving

-Open a bank account in Vietnam

-Register the tax declaration form in Vietnam

-The enterprise needs to conduct labor registration in Vietnam

-Register for social insurance in Vietnam

1.The first step is to set up a business in Vietnam

The investor must first choose the kind of business they want to start and provide the name and expected information before they can proceed with this step. Consequently, the enterprise establishment dossier will be prepared in accordance with regulations and submitted to the Department of Planning and Investment, Business Registration Office, of the location where it is anticipated to be headquartered. The company will receive a certificate of registration after submitting a valid application, and the contents of the registration will be posted on the National Business Registration Portal.

2.The second step is to publish the contents of business registration

Subsequent to being conceded an endeavor enrollment endorsement, a venture should make a public declaration on the Public Business Enlistment Entry.

3. In the third step, the enterprise conducts stamp engraving

Enterprises can demand to make a seal from the seal-making specialist. As a result, the company is solely accountable for the use of its legal entity seal and actively chooses the seal's type, quantity, form, and content.

4. Fourth step is that to open a bank account in Vietnam

At the moment, businesses have the option of choosing a bank to open an account for them. To do so, the bank needs an application form, a sample of the bank's seal, the company's charter, and a certificate. Business enlistment and related archives are expected by various bank.

5. The fifth step is to register the tax declaration form in Vietnam

As a result, businesses register to use e-invoices and notify their tax authorities of this use. Undertakings need to contact the receipt provider to arrange the printing of significant worth added receipt books and should enlist self-printed solicitations with charge specialists.

6. In the sixth step, the enterprise needs to conduct labor registration in Vietnam.

Enterprises register with the Department of Labor, War Invalids and Social Affairs to proclaim the utilization of work. The employer must fill out the required form and register with the Labor Department within thirty days of the start of business. Additionally, Enterprises should keep in mind that the labor contract and the Labor Code govern the relationship between employers and employees.

7.Seventh step is to register for social insurance in Vietnam.

Enterprises register with the Social Insurance Agency to proclaim the utilization of work. The employer must fill out the required form and register with the Social Insurance Agency within thirty days of the start of business. Additionally, businesses should keep in mind that the labor contract and the Labor Code govern the relationship between employers and employees.

It tends to be seen that setting up a business expects organizations to complete a ton of techniques and follow various guidelines of duty, banking, work, protection… Consequently, other than finding out about legitimate guidelines and organizations can look for the help of expert counseling firm in Vietnam with mastery and involvement with the field of business foundation to carry out the cycle rapidly and really.

Finding the right colleague in Vietnam is likewise significant. In order to identify potential risks when working together, we recommend conducting background checks on key personnel, gathering publicly available information about the company and individual shareholders, whether corporate or individual. Working with a dependable accomplice can assist with accomplishing monetary advantages, setting aside time and cash in business.

ANT Lawyers, a Vietnam-based law firm, may provide assistance in setting up business in Vietnam. We help clients who need legal help get certificates for investment, business registration, or other licensing procedures.

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What Are the Benefit of setting up business in Vietnam?

 What Are the Benefit of setting up business in Vietnam?

Vietnam has a coastline that is more than 3,000 kilometers long, and it is situated in a significant region of Southeast Asia. Vietnam's diverse geography includes mountainous, highland, and coastal areas that are suitable for general economic zones, making it an ideal location for the growth of the tourism and trade sectors. Investors can benefit from incentives for land finance, import and export taxes, and corporate income tax when setting up business in Vietnam.

Tax incentives for businesses: The corporate tax rate (CIT) in Vietnam has been gradually decreasing over the past few years. In the 2004-2008 period, CIT was 28%, in the 2009-2013 period it was 25%, from 2014 to 2015, 22% and from January 1, 2016 up to this point, 20%. In addition, the provision of high corporate income tax incentives for a number of essential fields that need to be encouraged for investment has contributed to the attraction of investment, the encouragement of business, the creation of favorable conditions for enterprises to increase accumulation, the increase in investment in the economy, and the promotion of growth, thereby encouraging investors to start businesses in Vietnam.

Tax incentives for imports and exports: Regulations have been added to the 2016 Import and Export Tax Law to exempt high-tech businesses, science-tech businesses, and science-tech organizations from paying import taxes on raw materials, materials, and components that cannot be produced domestically within five years of the start of production. There are also import and export tax incentives being applied such as:

(i)Goods imported for foreign processing are exempt from import tax, and products exported and returned to foreign parties are exempt from export tax;

(ii)The tax payment deadline can be extended to 275 days from the date of filing the customs declaration for goods that are imported for the purpose of processing and are exempt from tax, goods that are temporarily imported for re-export, and goods that are raw materials and supplies used in the production of exported goods; Taxes on goods temporarily imported for re-export may be paid 15 days after the expiration date;

(iii)The creation of fixed assets for investment projects in areas of special investment encouragement, investment promotion fields, and locality with difficult socio-economic conditions is exempt from import tax on goods.

Incentives on land finance: The general land rent can be reduced from 1.5 percent to 1 percent for foreign investors investing in Vietnam. Furthermore, the State likewise specifies the utilization of the land cost change coefficient in deciding the land cost to compute the land lease, consequently, making Vietnam progressively turning into a good objective to draw in unfamiliar speculation and company foundation in Southeast Asia.

In the spirit of the state ensuring the rights of the investors' ownership, investment capital, and other interests of foreign organizations and individuals, creating favorable conditions, and simplifying procedures for such organizations and individuals to invest in Vietnam, the development of a transparent and consistent investment legal system is also increasingly becoming a useful tool to promote inflows of foreign direct investment into Vietnam.

The international public considers Vietnam's foreign investment law to be more open and appealing than those of some of the countries in the region. For instance, the law allows for 100% foreign capital ownership, administrative procedures are simplified, and there is no discrimination between Vietnamese and foreign-invested businesses. The law has been changing to see investment and business as matters between businesses and investors, with investors having full authority to make decisions about everything from investment projects to the company's formation and operations, and the government only guiding, creating an open legal environment with favorable mechanisms and procedures, supervising, and enforcing the law.

ANT Lawyers - a law office in Vietnam will continuously circle back to experts for legitimate update on issues pertinent to venture enrollment or business setting-up in Vietnam.

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Ryan Reynolds Hollywood actor invests in a technology company

 Ryan Reynolds Hollywood actor invests in a technology company

Nuvei is a company that gives installment administrations to sports wagering. It recently received investment from the well-known actor and investor Ryan Reynolds.

The business has operations in approximately 50 nations and was founded in Montreal, Canada, in 2003. Customers from the crypto and gaming industries can use its payment services. Reynolds joked about the CEO's low profile in comparison to other US tech executives, but he did not specify how much he invested.

Reynolds has previously invested in Aviation Gin and Mint Mobile, a low-cost mobile phone service, among other businesses

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Tips for Foreigners to Follow When Setting up Company in Vietnam

 Tips for Foreigners to Follow When Setting up Company  in Vietnam

For an outsider to a nation like Vietnam which open doors profit for business, it is endeavoring to make a business to work and grab the opportunity. After settling in, the entrepreneur might wonder, "How difficult it is to set up company in Vietnam or how challenging the business environment is for operating and doing business in Vietnam when dealing with administrative procedures from registering investment, setting up the company, complying with periodic reporting and tax declarations?" If you are reading this and feel like this, you are not alone. After the first eagerness feeling of potential business to generate, the entrepreneur might wonder "How difficult it is to set up company in Vietnam."

As a spot with an ideal topographical position and copious work assets, and developing shopper market, Vietnam is progressively growing unequivocally, turning into a nation drawing in worldwide speculation among Southeast Asia nations. Foreign investors must conduct research on Vietnam's policies, investment incentives, legal requirements, and the process and procedures for establishing a business in order to carry out effective investment activities. If international investors are considering investing in Vietnam, this will provide some quick advice on the fundamental factors they should take into account.

A person with far off ethnicity or an association laid out under unfamiliar regulation could enlist speculation and direct business exercises in Vietnam. Unfamiliar financial backers are allowed to take part in any legitimate business, nonetheless, there are a few explicit enterprises that financial backers should meet the expected circumstances to have the option to enroll speculation. There are a few areas in Vietnam where foreign investors cannot do business due to national security concerns or the state's monopoly.

An investor who wants to start a business in Vietnam must get a certificate of investment registration from an authorization agency, according to Vietnam law. The Investment Registration Certificate (IRC) will typically be issued within 15 days of receiving a valid dossier for an investment project. However, it is essential to allocate sufficient time for the preparation of the necessary documents, such as the application, financial report, bank balance, and personal documents. Before being submitted, many of these documents require apostille, also known as notarization, legalization, and translation into Vietnamese.  

Vietnam regulation doesn't need a base money to set up a business, with the exception of restrictive venture or business lines. In any case, financial backers are obliged to contribute capital as per the timetable expressed in the IRC and that the public authority has the privilege to demand the financial backer to make sense of the marketable strategy agreeable to them in view of the proposed speculation capital. On the off chance that the financial backer can't contribute sufficient capital as per the serious time limit, the equipped authority might apply sanctions, including denial of the IRC or the financial backer needs to change the IRC to mirror the real commitment of venture. After receiving the IRC, the investor must then submit a request for an Enterprise Registration Certificate (IRC), which must be obtained within five days of the date of submission of a valid dossier in order for the business establishment to complete its establishment.

Now that the company has established itself in Vietnam, it can officially sign a lease agreement, hire staff, and engage in business transactions to purchase or sell goods or services. The documents must be signed and sealed to be legally binding. The next issue is how to obtain a seal. When an organization was managed by the Public Security authority, it was more difficult to have a seal created for it after it was established. Legislators and business experts have been discussing the possibility of completely removing the seal from legal documents in Vietnam because the signature of the legal representative is the most crucial element. Throughout the time, the once severe regulation overseeing the seal issuance has been relax. However, in Vietnam, the seal is still very important because it shows the official notice, such as the decision by the business's legal representative to end a labor contract, along with the signature of the representative. or an unmistakable endorsement of a company's participation in a transaction to hire a factory construction company. The investor has the right to use multiple seals, subject to the terms of the company charter. The venture should send a notification to the business enlistment office where its administrative center is situated for distribution on the Public Business Enrollment Entryway prior to utilizing, modifying, obliterating, or changing the quantity of seals. The seal can be utilized beginning the day the warning system has been done and the seal test has been transferred on the Public Business Enlistment Entrance for confirmation reason.

In most jurisdictions, with the exception of tax haven nations, the investor is required to pay close attention to their tax obligations during the business's initial operation. However, Vietnam is not included on the exemption list. Every business is required to provide a tax declaration. Consistently, the business should pay various duties and expenses, for example, permit charges (in light of enlisted sanction capital); Corporate Personal Duty (CIT) when the organization creates gain; declare and pay Value Added Tax (VAT) on behalf of an individual on goods or services sold. declare and pay Personal Income Tax (PIT), or, in some instances, export and import tax, and land tax.

The investment project reporting regime must also be fully adhered to by foreign investors in accordance with the law. These reports will be issued on a regular basis (monthly, quarterly, or annually) regarding topics such as: compliance with tax payment obligations and periodic reporting to ensure timely implementation as prescribed will help the company avoid unnecessary risks such as administrative sanctions, business suspension, and penalties that could impact the business. implemented investment capital, business investment results, information on labor, employed foreign workers, and reports on environmental protection.

ANT Lawyers, the leading law firm in Vietnam, provides nationwide comprehensive legal services. The firm is made up of lawyers and attorneys who specialize in a variety of areas, such as investment law, labor law, corporate law, and other areas, and it provides clients with legal advice and representation. In addition to providing services that are professional and ethical, the company is committed to providing each client with the best possible solutions. ANT Lawyers Law Firm is a trusted partner for individuals and businesses in Vietnam.

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