Public Policy

Many industries in Vietnam, for instant consulting, trade, IT, and retail, allow 100% foreign ownership. Nevertheless, it’s crucial to note that sectors like logistics, advertising, and media might have limitations on the degree of foreign ownership permissible.

Both foreign and local investors have several options for establishing a Vietnamese legal entity for their projects, including:

• Limited liability company (LLC): Can be a single-member (SLLC) or have up to 50 members (MLLC).
• Shareholding or joint stock company (JSC): Requires at least three shareholders with no maximum limit.
• General partnership or limited liability partnership.
• Private enterprise (similar to a sole proprietorship).

As per the regulations, the invested funds are usable for the company’s purposes, covering expenses like rent and employee salaries. However, if you use up all of your initial capital and plan to infuse more funds, you’ll need to modify your business license, which can be a lengthy procedure.

Typically, setting up a company in Vietnam takes 1 to 2 months, but it can vary based on conditional or unconditional categories. The specific city where registration occurs also affects processing times, with cities like Ho Chi Minh City often processing faster than Hanoi or Danang.

Many businesses typically don’t have a set minimum capital requirement, giving you flexibility in choosing an appropriate amount. However, having a significant capital is advisable if you plan to use the company for your investor visa. Certain specialized businesses might have specific capital requirements.

• Corporate income tax of 20% charged annually on total profits, with possible exceptions like tax breaks or lower rates for certain industries
• Value added tax of 0%, 5% or 10% applied based on the product or service, with imports and exports attracting different rates
• Personal income tax from 5% to 35% imposed on individual income, both local staff and foreign residents, with multiple influencing factors like deductions
• Foreign contractor tax of 2-5% levied on services provided by offshore companies to local Vietnamese firms, depending on service type
• Annual business license tax mandated in the first fiscal month, calculated based on capitalization, ranging from $45 to $140

An Employer of Record (EOR) is a local entity assuming legal responsibilities, such as payroll, taxes, benefits, visas, and more, on behalf of a hiring company, making offshore company registration in Vietnam more straightforward. EOR services aim to simplify complexities in managing employees for foreign company formation in Vietnam.

To obtain a long-term stay permit in Vietnam, you need to meet specific criteria based on your purpose of stay, such as investment, work, study, or family relationship. For investors, owning or co-owning a Vietnamese company is required. Work permits and sponsorship are necessary for work-related permits.

Vietnam does not offer citizenship through investment. However, it offers Temporary Resident Cards (TRCs) based on substantial capital investments, allowing extended stays. Another option is the Investor Visa, renewable for ongoing businesses. These avenues facilitate residency but do not grant citizenship. Citizenship is not available through investment in Vietnam.

A Temporary Resident Card (TRC) is a long-term visa for foreigners, allowing residence in Vietnam for up to 5 years. It eliminates the need for yearly visa renewals, grants the right to sponsor family members, and requires meeting specific criteria, including a clean record and a Vietnamese sponsor’s invitation.