Currently, the cost of establishing a 100% foreign-owned company will be higher than the cost of establishing a domestic company. Because to establish a 100% foreign-owned enterprise, you need to prepare more documents and apply for more licenses. To know the exact cost of establishing a foreign company, we share below the current price list applied in Viet My. You can refer to the following article of Viet My to know the current price of opening a 100% foreign-owned company.

1. Cost of establishing a 100% foreign-owned company in Viet My

The cost of establishing a company depends on the registered business lines of individuals and investors. Below is the cost of establishing a 100% foreign-owned company that Viet My offers for your reference:

• Service sectors: 1,000 USD
• Trade activities – Import and export: 1,700 USD
• Manufacturing sectors: 2,500 USD
• Conditional investment and business sectors: 3,000 USD
• Business projects with capital of over 300 billion: The cost of establishing a 100% foreign-owned company will be negotiated.

However, the cost of establishing a 100% foreign-owned company will include the cost of submitting to state agencies as prescribed and service costs for the company.

When using Viet My’s 100% foreign-owned company establishment service, customers will receive the following benefits:

• Detailed advice on legal regulations for establishing a company with foreign investment capital.
• Check the accuracy of the documents and complete the 100% foreign-owned company establishment file.
• Just prepare the documents, sign the documents and stamp.
• Viet My submits the documents on behalf of customers and works with government agencies.
• Receive your results as soon as possible.

If customers use Viet My’s foreign-owned company establishment service, they will receive the results at the most economical cost.

2. Advantages and disadvantages of establishing a 100% foreign-owned company in 2024

Advantages of establishing a 100% foreign-owned company

• First of all, because foreign-owned companies are managed by foreign investors, their management methods are different from domestic companies and their economic efficiency is often high.
• Secondly, foreign-invested enterprises are entirely founded and developed by foreign investors, which can bring many advantages in technology, capital and attract a large number of domestic and foreign workers. Country.
• Thirdly, establishing a foreign-invested enterprise is in line with the current trend of international integration. Foreign investors can take advantage of extensive relationships.

Disadvantages of establishing a 100% foreign-owned company

Firstly, the difference in business culture between domestic companies hinders access to the Vietnamese market. Needless to say, differences in corporate culture can cause disagreements among investors.

Secondly, although Vietnamese law has expanded the scope of foreign investors, its scope is still limited, partly to protect domestic investors.

• Investment ratios may be limited in certain specific industries
• The investment registration process requires very complicated documents and procedures.

3. Conditions for establishing a 100% foreign-owned company in 2024

Investors must not only prepare the costs of establishing a 100% foreign-owned company but also meet the conditions prescribed by the Investment Law 2020. These conditions are often applied to foreign investors at the time of establishment. Economic organizations include:

Foreign investors establishing a 100% foreign-owned company must meet the requirements for market access of foreign investors. Specifically, the industries and occupations considered are those that restrict foreign investors such as industries and occupations that have not yet accessed the market, industries and occupations with conditional market access.

Foreign investors must implement an investment project, issue an Investment Registration Certificate and carry out adjustment procedures before establishing an economic organization. The only exception is newly established small and medium-sized enterprises. Innovative startup investment fund based on law to support small and medium enterprises.

4. Procedures for establishing a 100% foreign-owned company in 2024

With the current trend of economic development associated with joining the World Trade Organization, the establishment of foreign-invested enterprises is increasingly developing in Vietnam. A foreign-invested enterprise is a type of business organization with foreign investment capital. The procedures for establishing a 100% foreign-owned company must comply with the provisions of the Law on Enterprises, the Law on Investment and the obligations of the WTO. Learning about the procedures for establishing a 100% foreign-owned company is a necessity in the process of increasingly deep international economic integration and development. Below, Viet My would like to introduce the procedures and services for establishing a 100% foreign-owned company.

4.1 Dossier for establishing a 100% foreign-owned company

1. Business registration application
2. Company charter
3. List of members/shareholders
4. Copies of:

• • Citizen identification card or ID card or passport of individual members;
  • Incorporation charter, business registration certificate and authorization letter for organizations. Legal personal identification documents of authorized representatives of organizational members
  • Business registration certificate or equivalent documents must be consularized for organizational members
  • Investment registration certificate for foreign investors.

Please refer to the dossier for establishing a 100% foreign-owned company in the article on dossier for establishing a foreign-owned company of Viet My.

4.2 Procedures for establishing a foreign-invested company

Establishing a 100% foreign-invested company usually requires the following steps:

Step 1: Complete the procedures for applying for an investment registration certificate

Investors must submit an application for an investment registration certificate to the Ministry of Planning and Investment or the Management Committee of Industrial Parks, Export Processing Zones, Economic Zones and High-Tech Parks depending on the type of investment project.

The application must ensure that all documents and papers are complete as prescribed in Article 33 of the Investment Law 2020, including:

• A written request to implement the investment project.
• A certified copy of the document confirming the individual or organizational status of the investor.
• ID card, permanent residence card, passport, payment confirmation or equivalent documents.
• Investment project proposal including investor, investment project purpose, investment scope, investment capital, capital mobilization plan, etc.
• Copies of documents proving the financial situation of the investor such as annual accounts for the last 2 years, commitment to provide financial support to the parent company/finance company and financial guarantee. Document describing the source of capital and financial capacity of the investor.
• Proposal for land use needs.

In case the project does not require land allocation, land lease, or change of land use purpose, submit a copy of the land lease agreement or other documents proving the right to use the location to implement the project;

Explanation of the use of technology for projects in the group of projects using technology on the List of technologies prohibited from transfer according to the provisions of the law on technology transfer.

The investment registration agency shall issue an investment registration certificate to the investor within 15 days of receiving a valid dossier when the project meets the following conditions:

• Not in the prohibited business sector or profession according to the provisions of the law on investment and international treaties on investment;
• The location for implementing the investment project is determined based on a valid copy of the land use right certificate or a valid copy of the land lease contract at the location or other papers and documents determining the land use right to implement the investment project;
• Investment projects are in accordance with the state planning
• Meeting the conditions on investment rate per land area prescribed by the Provincial People’s Committee based on the actual conditions of the locality and approved by the Standing Committee of the Provincial People’s Council (if any), the number of employees (if any);
• Meet the market access conditions for foreign investors.

Note: In some cases, due to the nature of the project requiring an investment policy decision, the investor must submit a request for approval of the project investment policy to one of the competent authorities (Ministry of Planning and Investment). Before applying for an investment registration certificate, please contact the registration authority, which is the Provincial People’s Committee. Depending on the project, the authority to decide on the investment policy belongs to competent authorities such as the National Assembly, the Prime Minister, and the Provincial People’s Committee. The competent authority carries out the appraisal procedures. Documents and resolutions approving the investment policy according to the provisions of the Investment Law 2020.

Step 2: Complete the procedure for applying for a business registration certificate

Depending on the type of company registration, investors need to prepare different company registration documents. However, in general, the documents include:

• Business registration certificate according to the form of the Ministry of Planning and Investment in Circular No. 02/2019/TT-BKHĐT;
• List of members;
• Company charter;
• Copies of documents proving the membership status of individuals and organizations legalized by the consulate;
• Copy of the issued business registration certificate.

Step 3: Procedures after establishing a 100% foreign-owned company

After completing the company registration procedure, the company must take steps to ensure its activities after establishment.

• Publicly announce business registration information;
• Make a seal and announce the seal sample;
• Open a bank account
• Register a digital signature;
• Initial tax declaration;…

Above is information about the cost of establishing a 100% foreign-owned company, current regulations on establishing foreign companies and our services. If you need to learn more about the cost of establishing a company If you have any questions about a 100% foreign-owned company or need advice or support on this issue, please call our hotline or email VIET MY LAW AND ACCOUNTING.