The cost of establishing a LLC (Limited Liability Company) is an important factor to consider when starting a business. This includes fees and costs associated with registering and forming a company, including filing, notary, taxes, and other administrative fees. Specific costs may vary depending on the location and size of the company. However, investing in establishing a limited liability company is necessary to ensure compliance with legal regulations and create a solid foundation for future business operations.

1. Expenses for establishing a limited liability company

Today, when individuals and business organizations want to establish a company in the form of a limited liability company, they need to pay attention to the costs of establishing a limited liability company such as: company registration fees. LLC; Fees for publication on the national electronic information portal on business registration of the Department of Planning and Investment; Seal engraving fees for businesses; digital signature registration fee for the company; Fees for opening and maintaining a bank account for a limited liability company or license fees to establish a limited liability company.

The actual amount of money that business entities have to pay to establish a limited liability company is not entirely the same. Because the fee will depend on whether you conduct the registration procedure to establish a limited liability company yourself or authorize organizations and individuals to conduct this service business outside.

In case the business entity registers its own business, customers only need to pay attention to state fees and fixed fees given by each supplier. State fees are mandatory fees that business organizations and individuals must pay when wanting to establish a business. These fees are specifically regulated in Circular No. 215 issued by the Politburo in 2016. The above costs are generally applicable to businesses registered nationwide.

If organizations and individuals do not carry out the procedures for establishing a company themselves but hire services to establish a limited liability company from the legal entity representing this procedure, customers need to pay additional service fees for this authorization. This is the obligatory expense that the business entity must pay to the State in accordance with the specific provisions of the circular when establishing a limited liability company. It is because in the year beyond the fixed state expenditure that this expenditure is often unclear, in particular, it will depend on each legal entity, on the quality of services and on the general basis of the market for business registration. In return, the time to do business registration procedures for your company will be significantly accelerated, and the possibility of documentation adoption will also be much more ensured by the experiences of these service business organizations.

2. Expenses for establishing a limited liability company that organizations and individuals must pay

2.1 Fees for establishing a limited liability company

The first cost to establish a limited liability company that a business entity must pay is the business registration fee, which is paid at the Department of Planning and Investment at the time the business entity does business. Submit application to establish a limited liability company according to the provisions of Decree 01/2021.

The registration fee for establishing a limited liability company is specified in Circular 47 issued by the Politburo in 2019 at 100,000 VND.

The entity establishing a limited liability company can choose one of two forms of fee payment: direct fee payment at the business registration office of the Department of Planning and Investment or electronic payment by fee transfer. into the account of the Business Registration Office of the Department of Planning and Investment.

This Business Registration Fee is mandatory for all individuals and organizations when they go directly to the Department of Planning and Investment to register to establish a business. In cases where organizations and individuals register to establish a business via an electronic information network, the business establishment registration fee is exempted.

Businesses need to note that in case they have submitted a request for registration to establish a limited liability company at the Department of Planning and Investment, it means they have paid the establishment fee but due to shortcomings and violations, the Department of Planning and Investment has not approved the application. If a Business Registration Certificate is issued, the fee amount previously paid by the enterprise will not be refunded to the enterprise.

2.2 Fee for publication of construction company registration content

The next cost for establishing a LLC that business organizations and individuals must pay is the cost of publishing the business registration content of the LLC.

According to the current regulations of the Enterprise Law 2020, the deadline for publishing the content of registration to establish a construction company is stipulated. That is, within a period of 30 days from the date the enterprise registers to establish a business, the enterprise must publish the content of its business registration on the National Business Registration Portal of Vietnam. Department of Planning and investment.

The cost that the construction company must pay for publishing the business registration content according to Circular 47 of the Politburo is 100,000 VND.

2.3 Cost of engraving corporate seal

The next cost for establishing a limited liability company that your business must pay is the cost of engraving the business seal. This cost is not regulated by law but is regulated by seal manufacturing facilities. Therefore, there are many prices on the market for engraving business seals.

The cost now depends on the unit providing the seal engraving service. They will give the cost of performing the work based on the type of seal the business requires the engraving unit to make. Currently, the price for the company’s round stamp will range from 250,000 VND to 350,000 VND. The title stamp of the Director and President of the company will range from 70,000 VND to 150,000 VND.

2.4 Fee for purchasing digital signature (Token)

The next cost of establishing a limited liability company that customers need to pay attention to is the cost of purchasing digital signatures for their company.

A digital signature is a form of electronic signature, created by transforming a data message through the use of an asymmetric cryptographic system.

It can also be understood that a digital signature is an encrypted USB format used instead of the signature and seal of the legal representative of the construction company to sign declarations or other operations on the internet system to Identify all operations as belonging to the business.

To buy digital signatures, your business can contact  digital signature service providers such as Viettel, Newca, FPT, BKav…. to purchase a Digital Signature device from them.

The cost of providing digital signatures also depends on the digital signature provider and the duration of the business’s digital signature service. A digital signature with a validity period of 03 years has a cost ranging from 2,000,000 VND to 3,000,000 VND.

2.5 Fee for opening a bank account

When in operation, your LLC must open a bank account for transactions and to pay taxes according to current mandatory regulations. Thus, the next cost to establish a limited liability company that the business must pay is the fee for opening a bank account.

Normally, businesses will not be charged a fee when opening an account at a bank. However, to maintain the account, businesses need to pay a certain fee. The average payment is about 1,000,000 VND.

2.6 Costs for notifying the company’s bank account information

After successfully opening a bank account, within 10 days, businesses must notify their account information. Therefore, the next cost to establish a LLC that the company must pay is the cost of notifying account information.

This notification procedure is currently carried out at the Business Registration Office. If the business does this notification itself, there will be no fee, but in case the business hires units to perform the above activity on its behalf, it will have to pay a service fee to the service provider. The service fee at market price ranges from  500,000 VND  to 1,000,000 VND.

2.7 License fees

Currently, “License Tax” has been replaced by “License Fee”.

The license fee will depend on the charter capital of the LLC at the time of submitting the business registration application. Accordingly, the license fee for companies with charter capital of over 10 billion VND is 3,000,000 VND, for companies with charter capital of 10 billion VND or less, the fee is 2,000,000 VND. License fees are paid annually.

2.8 Cost of issuing electronic invoices – Value-added invoices

The final cost of establishing a limited liability company that the company must pay is the cost of issuing electronic invoices – value-added invoices.

Invoice is an accounting document prepared by an organization or individual selling goods or providing services to record information about the sale of goods or provision of services by the organization or individual according to the provisions of accounting law.

An electronic invoice is an invoice expressed in the form of electronic data issued by an organization or individual selling goods or providing services to record information about selling goods, providing services, digitally signing, or electronically signing. electronically according to regulations, including cases where invoices are created from a cash register with an electronic data transfer connection to the tax authority.

The cost that the company will have to pay depends on the choice of the business: the business invests in the infrastructure to serve this work or uses an external electronic invoice service.

3. Subjects are exempted from fees and charges for establishing a limited liability company

According to the provisions of Article 5 of Decree 47/2019/ND-CP on subjects exempt from company registration fees, fees for announcing business registration contents include the following:

– Enterprises that add or change information due to changes in administrative boundaries are exempt from business establishment registration fees and fees for publishing business registration contents.

– Register for dissolution of companies, enterprises, or temporary suspension of business; Termination of operations of representative offices, branches, and business locations that are exempt from business registration fees.

– Enterprises that register to establish a company electronically will be exempt from business registration fees.

– State agencies requesting to provide company information to serve state management are free to provide business information.

– Small and medium-sized enterprises converted from business households will be exempted from business establishment registration fees and fees for providing information about the business for the first time.

4. Frequently asked questions related to the cost of establishing a limited company

4.1 Who needs to pay fees for providing information about businesses?

Organizations and individuals who use services providing information about businesses are responsible for fully paying the fee for providing information about businesses at the fee stated in Decree 47/2019/ND-CP.

4.2 What to buy digital signatures (Tokens) for?

According to Decree 130/2018/ND-CP, “Digital signature” is a form of electronic signature created by transforming a data message using an asymmetric cryptographic system. Or it can be understood that digital signature is an encrypted USB signature used instead of a representative’s signature and seal to sign documents or other online operations for businesses.

4.3 What do the documents for opening a company bank account include?

– Application for opening an account for the company according to the Bank’s form.

– Copy of ID card/CCCD of the representative;

– Copy of business registration certificate;

– Appointment decision of the person in charge of accounting and chief accountant.

4.4 Are company branches exempted from license fees by law?

Company branches established under the provisions of the Enterprise Law 2020 are subject to paying license fees. The license fee exemption for branches is only applicable in the first year of company establishment.

4.5 Do I have to pay a fee to register a business via the internet?

Pursuant to Article 5 of Circular 215/2016/TT-BTC (amended in Circular 310/2017/TT-BTC), when a company registers business via the internet, it will not have to pay the business registration fee.

While costs may vary depending on the location and size of the company, it needs to be invested properly to comply with legal regulations and create a solid foundation for business operations. Reviewing and planning the cost of establishing a limited liability company is necessary to ensure the success and sustainable development of the business. If you need any support or advice about the cost of establishing a company, contact VIET MY LAW AND ACCOUNTING immediately for free consultation.