The cost of establishing a foreign-invested company is an issue that most investors are concerned about when wishing to establish a foreign-invested company in Vietnam. To establish a foreign-invested company quickly and economically, investors can use services from reputable service providers. Please refer to Viet My’s cost of establishing a foreign-invested company in 2024 below.

1. What is a foreign invested company?

Pursuant to Clause 22, Article 3 of the Investment Law 2020, economic organizations with foreign investment capital are defined as economic organizations with foreign investors as members or shareholders. In addition, in Clause 21, Article 3 of the Investment Law 2020, economic organizations are defined as organizations established and operating under Vietnamese law, including enterprises, cooperatives, and cooperative unions. communes and other organizations carrying out business investment activities.

Thus, a foreign invested company is a type of economic organization established and operating under Vietnamese law in the form of enterprises, cooperatives, cooperative unions or other organizations. carry out business investment activities and have foreign investors as members or shareholders.

2. Conditions for establishing a foreign invested company in Vietnam

Subjects with the right to establish foreign-invested companies include organizations and individuals that are not prohibited from establishment according to the provisions of the Enterprise Law 2020;

Before establishing a foreign invested company, foreign investors need to have an investment project and carry out procedures to apply for an investment registration certificate according to the law.

In addition, foreign investors must meet the following conditions:

– Own an unlimited amount of charter capital, except in the following cases:

+ Capital ownership ratio of foreign investors in public companies, listed companies, securities business organizations and securities investment funds according to securities laws;

+ The capital ownership ratio of foreign investors in state-owned companies that are equitized or converted into other forms of ownership shall comply with regulations;

+ The capital ownership ratio of foreign investors not falling into the above two cases will comply with other relevant regulations and international treaties to which Vietnam is a member.

– Form of business investment, scope of operations, Vietnamese partners participating in investment activities and other conditions according to the provisions of international treaties to which Vietnam is a member.

3. Procedures for establishing a foreign-invested company in Vietnam

The process of establishing a foreign invested company will follow these steps:

Step 1: Procedures for applying for an Investment Registration Certificate for business investment projects in Vietnam
Step 2: Carry out procedures to apply for a Business Registration Certificate
Step 3: Carry out initial tax declaration procedures and make monthly/quarterly/annual tax reports

3.1 Documents for establishing a foreign-invested company

For individuals who are foreign investors:

• Certified copy of investor passport
• Document proving the capacity and financial capacity of the investor
• Document proving the right to use the real estate of the headquarters and the location where the project will be implemented (headquarter lease contract)

For economic organizations and foreign investors:

• Copy of the investor’s consularly legalized business license
• Certified copy of passport of investor representative
• Financial statements for the most recent 2 years of the investor
• Document proving the right to use the real estate of the headquarters and the location where the project will be implemented (headquarter lease contract).

3.2 Application dossier for issuance of business registration certificate

• Application for business registration.
• Company rules.
• List of all founding members/shareholders of the company and company shareholders who are foreign investors;
• Copies of the following personal documents: Citizen identification card/ID card, Passport or other legal personal identification documents of individual members of the company, of authorized representatives the rights of the organization to be a member;
• Decision on establishment;
• For members that are foreign organizations, a copy of the business registration certificate or other equivalent document that has been consularly legalized;
• Investment registration certificate for foreign investors has been issued.

3.3 Process of establishing a foreign-invested company in Vietnam

Step 1: Apply for Investment Registration Certificate

Foreign investors carry out procedures to apply for an Investment Registration Certificate at the investment registration agency: Management Board of the receiving industrial park, high-tech park or economic zone; export processing zones or Departments of Planning and Investment of provinces and centrally run cities.

Records include:

• Written request to proceed with the investment project;
• Proposal of investment project;
• Valid copy of identity card, citizen identification card or passport for foreign investors who are individuals; Certificate of company establishment or other equivalent document to confirm the legal status of foreign investors who are organizations;
• One of the following types of documents: Financial statements within the most recent 02 years of the foreign investor; commitment to financial support from the parent company; Commitment to financial support from financial institutions, guarantee of economic financial capacity of investors; Documents to explain the investor’s financial capacity;
• Proposal on land use needs; In case the project does not request the State to allocate land, lease land or allow change of land use purpose, a valid copy of the location lease agreement or other documents will be submitted to confirm the project. Foreign investors have the right to use that location to carry out investment projects;
• Explanation of technology use issues for the project (if any), including: name of technology, origin of technology, technology process diagram; Main technical parameters and current usage status of main machinery, equipment and technological lines;
• Other relevant documents and papers.

Step 2: Apply for a business registration certificate and engrave the legal seal

After being granted an investment registration certificate, the foreign investor carries out procedures to apply for a Business Registration Certificate and engrave the legal entity seal.

Resolution deadline:

– Processing time for issuance of Investment Registration Certificate is 15 working days from the date of receipt of valid documents.

– Processing time for issuance of Business Registration Certificate is 03 – 05 working days. The time for posting the company seal and the effective seal is 04 working days.

Step 3: Carry out initial tax declaration procedures and make monthly/quarterly/annual tax reports

4. The cost of establishing a foreign-invested company is economical

The cost of establishing a company depends on the business line in which the company or individual investor registers to do business. Below are the costs of establishing a foreign-invested company that Viet My Law offers for your reference:

• Occupations related to the service sector: 1,000 USD
• Professions related to commercial activities – Import and export: 1,700 USD
• Occupations related to the manufacturing sector: 2,500 USD
• Conditional business investment lines: 3,000 USD
• Business projects with capital over 300 billion: Costs for establishing a foreign-invested company will be agreed upon.

However, the cost of establishing a foreign-invested company will include fees paid to state agencies and service costs for the company.

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

– Get detailed advice on legal regulations on establishing foreign-invested companies;

– Check the accuracy of the documents and complete the documents;

– Prepare documents and only need to sign and stamp the documents;

– Viet My will submit applications and interact with state agencies on behalf of customers;

– Receive results as quickly as possible.

If you use Viet My’s foreign-invested company establishment service, you will receive implementation results at the most economical cost.

5. Frequently asked questions about the costs of establishing a foreign-invested company

5.1 What types of companies can foreign investors choose to establish?

Types of companies that foreign investors can choose to establish include: One-member LLC; LLC with 2-50 members; A joint stock company has 3 or more shareholders.

5.2 Forms of establishing foreign invested companies

It is possible to establish a foreign-invested company in the following forms: Establishing a company in Vietnam with 1- 100% foreign capital; Jointly contribute capital to establish a joint venture company with investors in Vietnam; Buying capital shares in Vietnamese companies; Carry out business investment according to BCC business cooperation contract.

5.3 Can foreign investors who want to contribute capital to a company contribute capital in cash?

Foreign investors who want to contribute capital to a company in Vietnam to conduct business investment activities are required to contribute capital in the form of bank transfer and cannot contribute capital in the form of cash.

5.4 Are foreign investors allowed to do business in industries that do not yet have market access?

Are not. Pursuant to Clause 6, Article 16 of the Enterprise Law 2020, foreign investors are not allowed to do business in industries without market access.

5.5 Can companies with foreign capital exercise import and export rights?

Companies with foreign capital are entitled to exercise import and export rights if they meet all prescribed conditions.

The above article is Viet My’s economical cost of establishing a foreign-invested company in 2024. In case you have difficulty preparing finances or have questions about issues related to company establishment costs, please contact VIET MY LAW AND ACCOUNTING immediately for further advice and further incentives!