How to procedures for establishing of the FDI business in Vietnam? In this legal articles, Gate2v Lawyers would like to how to carry out the procedures to make investment in Vietnam.

Entities allowed to establish FDI companies in Vietnam

Foreign Direct Investment (FDI) companies in Vietnam can be established by various entities, including:

•  – Foreign individuals: Foreign individuals can establish FDI companies in Vietnam, subject to certain conditions and restrictions.
•  – Foreign organizations: Foreign organizations, such as corporations and other legal entities, can establish FDI companies in Vietnam. These organizations may be required to have a local representative or partner.
•  – Joint ventures: Foreign investors can establish joint venture companies with Vietnamese partners or other foreign investors in Vietnam.
•  – Business cooperation contracts: Foreign investors can also establish FDI companies through business cooperation contracts with Vietnamese partners.
•  – Foreign-invested capital contribution: Foreign investors can contribute capital to a Vietnamese enterprise to establish an FDI company.

Procedures for establishing of the FDI business in Vietnam

Here are the general procedures for establishing a Foreign Direct Investment (FDI) business in Vietnam:

Obtain an Investment Registration Certificate (IRC)

Obtaining an Investment Registration Certificate (IRC) is one of the important steps to establish an FDI business in Vietnam. The IRC is issued by the Department of Planning and Investment and serves as proof of the FDI business’s investment in Vietnam. Here are the steps to obtain an IRC:

1. Submit an application: The FDI business must submit an application for an IRC to the Department of Planning and Investment, along with the following documents:

•              – Business registration certificate
•             – Investment proposal or feasibility study
•             – Copy of the passport of the legal representative
•            – Other relevant documents as required by the local authority

2. Review and approval: The Department of Planning and Investment will review the application and relevant documents, and may request additional information or documents if necessary. If the application is approved, the IRC will be issued within 15 working days.
3. Post-licensing procedures: After obtaining the IRC, the FDI business must complete post-licensing procedures such as registering for tax, obtaining a seal, opening a bank account, and registering with labor authorities.

Open a bank account

The next Procedures for establishing of the FDI business in Vietnam is that you should open a bank account. It is an important step when establishing an FDI business in Vietnam, as it is required for many business operations such as receiving payments, making transactions, and managing finances.

Obtain a Business Registration Certificate (BRC)

After obtaining the IRC, the FDI business must obtain a BRC from the DPI. The BRC confirms the company’s legal status and is necessary for conducting business in Vietnam.

Obtain a seal registration certificate

Obtaining a seal registration certificate is an important step when establishing an FDI business in Vietnam. A seal registration certificate is a legal document that confirms the authenticity of the company’s official seal, which is used to sign important documents and contracts.

To obtain a seal registration certificate in Vietnam, the following steps must be taken:

1. Apply for a seal registration certificate with the local Department of Justice.
2. Provide the required documents, including the company’s business registration certificate, articles of association, and identification documents of the company’s legal representative.
3. Have the official company seal made by a reputable seal maker, in accordance with Vietnamese legal requirements.
4. Submit the official seal to the Department of Justice for authentication and registration.
5. Pay the required registration fees and wait for the seal registration certificate to be issued.

Register for taxes

When establishing an FDI business in Vietnam, it is necessary to register for taxes with the tax authorities in order to comply with Vietnamese tax laws. The specific tax registration requirements may vary depending on the type of FDI business being established, the location of the business, and the nature of the business activities.

To register for taxes in Vietnam, the following steps must typically be taken:

1. Obtain a tax identification number (TIN) from the tax authorities.
2. Register for value-added tax (VAT) and pay the required VAT deposit.
3. Register for corporate income tax (CIT) and obtain a CIT code.
4. Register for other applicable taxes, such as personal income tax, special consumption tax, and import/export taxes.
5. Comply with ongoing tax reporting and payment requirements.

Obtain necessary licenses

Obtaining necessary licenses is a crucial step when establishing an FDI business in Vietnam. The specific licenses required will depend on the nature of the business activities and the location of the business.

To obtain necessary licenses in Vietnam, the following steps must typically be taken:

1. Identify the specific licenses required for the business activities and location.
2. Prepare the required documents and submit the application to the relevant licensing authority.
3. Pay the required fees and wait for the license to be issued.

Register with social insurance

Registering with social insurance is an important step when establishing an FDI business in Vietnam, as it is required by law to provide social insurance for employees. Here are the steps to register for social insurance:

1. Obtain a tax code
2. Obtain a social insurance code
3. Register for social insurance

4. Pay social insurance premiums
5. Comply with social insurance regulations

Register with labor authorities

The FDI business must register its labor contracts and labor regulations with the local Department of Labor, Invalids and Social Affairs. If you are looking for a legal advice on setting up an FDI company in Vietnam, please contact gate2v.com. We will advise, support and complete all legal procedures in the shortest time. Contact us for now: (84) 916 545 618