The two most common business entity types open to foreign investors in Vietnam are a Limited Liability Company (LLC) and a Joint-Stock Company (JSC).
Depending on the industry the company can be wholly foreign owned enterprise (WFOE), or a joint venture with a local partner.
The incorporation process in general is the same for a LLC and JSC and takes approximately 1 to 3 months. The process includes collecting and submitting relevant documents, and communication with several state authorities.
Both legal entity types give you the following advantages:
Emerhub will give you instructions on collecting the relevant documents and will take care of the communication and submission of applications until your company registration is complete. Foreign investors have to visit Vietnam only once to set up the company.
|Limited Liability Company (LLC)||Joint-Stock Company (JSC)|
|Company registration timeframe||Approximately 1 to 3 months from submission of documents to the Department of Planning and Investment||Approximately 1 to 3 months from submission of documents to the Department of Planning and Investment|
|Suitable for||Small to medium sized business||Medium to large sized businesses|
|Number of founders||1 to 50 founders||At least 3 founders|
|Liability||Founders’ liability is limited to the capital contributed to the Company||Founders’ liability is limited to the capital contributed to the Company|
|Issuance of shares and public listing||A Vietnamese LLC cannot issue shares and be pubicly listed on the local stock exchange||A Vietnamese JSC can issue ordinary and preference shares, the shares can be listed on the public stock exchange|
*Only required if the LLC has more than 1 founder
**Only required if the LLC has more than 11 founders