In recent years, many foreign-owned companies have been established in Vietnam. The fee for establishing a company with 100 foreign capital is a matter of concern when establishing a company. Depending on many factors, the cost of establishing a 100% foreign-owned company can be different for each business project. Please refer to Viet My’s cheapest company establishment fee 100 foreign capital below this article.

1. What is a 100% foreign-owned company?

100 Foreign Capital Company is a company owned by the Foreign Investor and established in Vietnam by that Foreign Investor and will be self-managed and will be responsible for the results of the business investment. A foreign-invested company 100 was established in the categories of Joint Stock Company, Limited Liability Company, which has legal status in accordance with Vietnamese law, was established and started operations from the date of state grant of investment registration.

The legal capital of 100 Foreign Capital Company shall be at least = 30% of the invested capital. In special cases, the legal capital of 100 Foreign Capital Company may < 20 percent of the investment capital and must be approved by the Department of Planning and Investment.

2. Conditions for establishing a company with 100 foreign capital in Vietnam

• To establish a 100% foreign-invested company, you must have a specific and feasible investment project in Vietnam, and must also be approved by a competent authority.
• Foreign investors must prove their financial capacity to implement the project.
• Commitment to tax payment obligations, and compliance with legal regulations for Vietnam
• Company 100 foreign capital company commits to the obligations of using local labor, land obligations…
• Company A company with 100 foreign capital must complete company registration procedures according to Vietnamese law.

3. Cheapest company establishment fee 100 foreign capital in Viet My

In fact, the fee for establishing a 100% foreign capital company depends on many factors. Factors that determine the cost of establishing a 100% foreign-owned company include:

• Type of business of the company.
• Size of the company’s charter capital.
• Scale of the company’s business activities.
• Industry and field in which the company operates.
• Investor nationality.
• CPC industry code (WTO industry code).
• The investor’s status is an individual or a business.

Below are the costs of establishing a company with 100 foreign capital that Viet My Law offers for your reference:

• Occupations related to the service sector: 1,000 USD
• Professions related to commercial activities – Export and import: 1,700 USD
• Occupations related to the manufacturing sector: 2,500 USD
• Business line requires conditions: 3,000 USD
• Business projects with capital over 300 billion: Costs for establishing a company with foreign capital will be agreed upon.

The cost of establishing a company with 100 foreign capital will include payment fees to state agencies and other service costs for the company.

4. Process of establishing a company with 100 foreign capital

The process and procedures for establishing a company with 100 foreign capital will be carried out according to the provisions of the Investment Law 2020 and Decree 31/2021/ND-CP, accordingly this process includes the following basic steps:

4.1 Apply for investment decisions and policies

(Done in some cases where it is necessary to request a decision or investment policy)

When foreign investors come to Vietnam to invest in implementing business projects, they must apply for an Investment Registration Certificate. However, before applying for an Investment Registration Certificate, in some cases, foreign investors must register their investment policies under the authority of the Prime Minister or the Provincial People’s Committee.

Only the following projects require foreign investors to register investment policies at the provincial level:

• Projects that are allocated or leased land by the State without auction, bidding or transfer; Projects that require changing land use purposes;
• The project uses technologies on the List of technologies restricted from transfer according to Vietnamese law on technology transfer.

In cases where foreign investors’ investment projects are in the fields of telecommunications services with network infrastructure, shipping business, afforestation, journalism, publishing, and establishment of scientific organizations, science & technology, science & technology enterprises with 100% foreign capital. Accordingly, in case of establishing a company with 100 foreign capital that is related to the above issues, the investment policy must be registered with the Prime Minister according to the provisions of the Investment Law 2020.

4.2 Apply for Investment Registration Certificate

Dossier to apply for an investment registration certificate for a company with 100 foreign capital includes:

• Written request to carry out an investment project, including a commitment to take responsibility for all costs and risks if the project is not approved.
• Documents to prove the investor’s legal status.
• Documents to prove the investor’s financial capacity.
• Proposal on investment projects. In cases where construction law requires a pre-feasibility study report to be prepared, foreign investors may submit a pre-feasibility study report instead of the investment project proposal.
• In case the investment project does not request the State to allocate or lease land, or allow change of land use purpose, copies of land use rights papers or other documents will be submitted to determine land use rights. Use the location to carry out investment projects.
• Content explaining the technology to be used in the investment project for projects subject to appraisal and consultation on technology according to Vietnamese law on technology transfer.
• BCC contract for investment projects in this form.
• Other documents related to the investment project, conditions and capacity requirements of the investor according to legal regulations (if any).

Note: For investment projects that have been put into operation, the investor must submit documents according to the regulations above, in which the investment project proposal will be replaced by a status report on the implementation of the investment project. investment from the time of implementation until the time of applying for an investment registration certificate

The company submits an application for an investment registration certificate for a 100% foreign-owned company at the investment registration agency.

• If the company is headquartered in an industrial park, submit it to the Industrial Park Management Board.
• If the company is headquartered outside the industrial park, submit it to the Department of Foreign Economic Relations – Department of Planning and Investment at the provincial level.

Time for issuance of investment registration certificate for 100% foreign capital company.

• For investment projects that do not require a decision on investment policy: 15 – 20 working days from the date the agency receives complete documents
• For investment projects that require a decision on investment policy: 05 – 10 working days from the date of receiving the decision on investment policy.

4.3 Establish a 100% foreign-invested company

After obtaining the investment registration certificate, investors need to prepare documents to establish a company.

Documents to establish a limited liability company with 100 foreign capital:

• Application for business registration;
• Company rules;
• List of members;
• Copies of the following documents: Citizen identification card, ID card, passport or other legal personal identification documents of members if they are individuals;
• Company establishment decision, business registration certificate or other equivalent documents of the organization and accompanying authorization document; Citizen identification card, ID card, passport or other legal personal identification documents of the authorized representative if the member is an organization;
• For company members that are foreign organizations, a copy of the business registration certificate or equivalent document must be consularly legalized;
• Investment registration certificate for foreign investors according to the provisions of the Investment Law.

Documents for establishing a joint stock company with 100 foreign capital:

• Application for business registration;
• Company rules;
• List of founding shareholders and shareholders who are foreign investors (list of authorized representatives, if any);
• Copies of the following documents: Citizen identification card, identity card, passport or other legal personal identification documents of members if they are individuals;
• Company establishment decision, business registration certificate or other equivalent documents of the organization and accompanying authorization document; Citizen identification card, identity card, passport or other legal personal identification documents of the authorized representative if the member is an organization;
• For company members that are foreign organizations, a copy of the business registration certificate or equivalent document must be consularly legalized;
• Investment registration certificate for foreign investors according to the provisions of the Investment Law.

Agency submitting application for business registration certificate: Business registration agency – Provincial Department of Planning and Investment.

Time to issue a business registration certificate for a company with 100 foreign capital: 05 working days from the date of receiving all valid documents.

After the company has issued a certificate of enterprise registration, it must publicly announce the contents of enterprise registration on the National Portal of enterprise registration in accordance with the procedures and procedures and pay fees as prescribed.

5. Frequently asked questions about company establishment fee 100 foreign capital

5.1 Does a 100% foreign-owned company receive investment incentives from the state?

Have. However, companies with 100 foreign capital only enjoy the same investment incentives as businesses in Vietnam.

5.2 What is the difference between a 100% foreign-invested company and a foreign company?

Foreign companies are established according to the processes and procedures prescribed by foreign laws. A company with 100 foreign capital in Vietnam is a company established and operating in accordance with the laws of Vietnam.

5.3 What types of companies can foreign investors establish in Vietnam?

Depending on the number of foreign investors participating in establishing economic organizations and business management, foreign investors can establish the following types of companies in Vietnam: Partnership company; Co., Ltd; Joint stock company.

5.4 What is the capital ownership ratio of foreign investors?

The charter capital ownership ratio of foreign investors will not be restricted in economic organizations, except in cases where the economic organization is: a public company; listed companies; securities business organizations; securities investment funds; State-owned enterprises are equitized or converted to foreign ownership according to regulations.

5.5 Who can establish a company with 100 foreign capital?

Foreign individuals and organizations have the right to establish companies with 1 – 100% foreign capital in Vietnam.
Priority is given to individuals and organizations from countries participating in WTO commitments. Countries that are not WTO members will have to consult with ministries for investment purposes to establish 100% foreign-owned companies.

Above is the cheapest fee for establishing a company with 100 foreign capital in 2024 of Viet My. If you have difficulty establishing a 100% foreign-owned company in Vietnam or other related issues, please contact VIET MY LAW AND ACCOUNTING.