Thinking of registering a company in Vietnam? Here’s the inside scoop to help you plan your budget before making the move!
This article elaborates on what to expect in terms of costs when registering a company in Vietnam with Emerhub, including the fees for different types of companies, additional expenses to keep in mind, and strategies to help save money.
Types of companies and their costs of registration in Vietnam
The cost of registering a company in Vietnam depends on the type of company you are forming.
Ensure the success of your business with Emerhub. Our knowledgeable consultants provide you with assistance throughout the company registration process in Vietnam and work with you to find the most cost-effective solution that meets your specific needs.
The 3 most common types of companies registered by foreigners in Vietnam include:
- Limited liability company (LLC)
- Joint stock company (JSC)
- Representative office
For more details on the process and requirements of registering a company in Vietnam, click here.
Limited liability company (LLC):
A Limited Liability Company (LLC) is a popular choice for foreigners looking to register a company in Vietnam. It is a separate legal entity from its owners (shareholders) and is recognized as such under Vietnamese law, which allows it to enter into contracts, own assets, and perform other legal activities.
Timeline: The timeline for registering an LLC in Vietnam takes between 4 – 6 weeks.
Process for registering an LLC in Vietnam
The process for registering an LLC in Vietnam includes:
Step 1: Choose a unique name for your company and ensure it is not already in use by another business in Vietnam.
Step 2: Preparing required documents including personal identification of the members, proof of address, and a detailed business plan.
Step 3: Submitting the required documents and receiving an investment registration certificate (IRC) from the department of planning and investment (DPI).
Step 4: Submitting IRC to the business registration office to obtain an enterprise registration certificate (ERC).
Step 5: Completing the tax registration process by submitting the ERC and required tax forms to the tax office.
Step 6: Opening a corporate bank account in the company’s name to manage its finances.
Minimum cost with Emerhub:
While the cost for registering an LLC in Vietnam varies based on the industry you wish to operate in, the approximate cost for registering an LLC with Emerhub starts from USD 2500.
Fixed cost:
The cost of registering an LLC in Vietnam with Emerhub includes the company incorporation charges.
- Company Incorporation (starts from 2,500 USD):
This includes registering the company with the following authorities:
- Investment Registration Certificate (IRC)
- Business Registration Certificate (BRC)
Add-on services:
It is mandatory for an LLC to have a resident director, office address, visa & permits if they wish to register in Vietnam.Emerhub provides all these as add-on services if the company does not have them available.
- Virtual office (USD 600):
Emerhub provides a virtual office address for the client to register their company.
- Work permit & TRC processing (USD 1500 per person)
- Non-Vietnamese employees (including the Chief Rep) of the company must obtain a work permit.
- TRC is a long-term stay permit that is valid for the same duration as the work permit which is two years.
- The timeline for a work permit is 4-6 weeks and for TRC is 2 weeks.
- Business Visa (USD 1000 per person)
- Applicable for the legal representatives and employees of the company coming to Vietnam under the company’s sponsorship.
- It is valid for 3 months.
- The timeline for acquiring a business visa is 4 weeks.
- Joint stock company (JSC)
A Joint Stock Company is a legal entity owned by at least three founders. It is often used when foreign investors need to collaborate with Vietnamese locals to comply with local ownership regulations in certain industries in Vietnam. JSCs offer flexibility in terms of management and control and allow for a wider pool of potential investors and partners.
Timeline: The timeline for registering a JSC in Vietnam takes around 2-3 months.
Process for registering a JSC in Vietnam
The process for registering a Joint Stock Company (JSC) in Vietnam is as follows:
Step 1: Choosing a company name that is unique and complies with Vietnamese regulations.
Step 2: Obtaining approvals from relevant Vietnamese government agencies including the ministry of planning and investment and the department of planning and investment.In addition to these, approval from other government agencies is required for specific industries. These agencies include the ministry of industry and trade, the ministry of finance, the ministry of construction, and the ministry of natural resources.
Step 3: Drafting the company’s charter to outline the company’s purpose, management structure, and capital requirements.
Step 4: Submitting the company’s charter, and approvals to the department of planning and investment.
Step 5: obtaining a business license from the department of planning and investment, which allows the company to legally operate in Vietnam.
Step 6: Opening a corporate bank account in order to receive investment capital and manage the company’s finances.
Total cost with Emerhub:
While the minimum cost for registering a JSC in Vietnam varies based on the industry you wish to operate in because of the different requirements and regulations, the approximate cost for registering a JSC with Emerhub starts from USD 2500.
Fixed cost:
The cost of registering a JSC in Vietnam with Emerhub includes the company incorporation charges.
- Company Incorporation (starts from 2,500 USD):
This includes registering the company with the following authorities:
- Investment Registration Certificate (IRC)
- Business Registration Certificate (BRC)
Add-on services:
It is mandatory for a JSC to have a resident director, office address, Visa & permits if you wish to register in Vietnam. If the company does not have these available, Emerhub provides all these as add-on services.
- Virtual Office (USD 600)
- Use of Emerhub’s Business Address to be your Registered Business Address
- Work permit & TRC processing (USD 1,500 per person)
- Non-Vietnamese employees (including the chief rep) of the company must obtain work permits.
- TRC is a long-term stay permit that is valid for the same duration as the work permit which is two years.
- The timeline for a work permit is 4-6 weeks and 2 weeks for TRC.
- Business Visa (USD 1,000 USD per person)
- Applicable for the legal representatives and employees of the company who wish to come to Vietnam under the company’s sponsorship.
- It is valid for 3 months.
- The timeline for this process is 4 weeks.
3. Representative office
A representative office (RO) is a type of business entity in Vietnam that allows foreign companies to have a presence in the country without conducting any commercial activities. It serves as a liaison between the parent company and the local market and is not allowed to generate income or engage in any commercial transactions.
A representative office is established to promote the company’s products and services, conduct market research, and maintain relationships with existing clients and suppliers.
Timeline: It takes 2-4 weeks to register a representative office (RO) in Vietnam.
Process for registering a representative office in Vietnam
The process of registering a representative office in Vietnam involves obtaining necessary approvals and certifications from the relevant government agencies.
The following is a guide for registering a representative office in Vietnam. Emerhub helps you with every step of the process, from understanding the requirements to completing the registration and ensuring compliance with local regulations.
Step 1: Choose a business name and check its availability with the department of planning and investment (DPI).
Step 2: Obtaining an investment registration certificate (IRC) from the DPI.
Step 3: Submitting required documents to the DPI, including the IRC, lease agreement of the office, passport copies of the representative and the head of the foreign company, and a power of attorney.
Step 4: Obtaining a business registration certificate (BRC) from the DPI.
Total cost with Emerhub:
While the total cost for registering a representative office in Vietnam varies based on the industry you wish to operate in and the required add-on services (such as tax and accounting services and virtual office), the approximate cost for registering a representation office with Emerhub is $2,500 USD.
Fixed cost:
The cost of registering a representative office in Vietnam with Emerhub includes the company incorporation charges.
- Company Incorporation (starts from 2,500 USD):
This includes registering the company for the following licenses.
- RO license
- RO chop/seal registration
- Opening a bank account for RO
Add-on services:
It is mandatory for a representative office in Vietnam to have an office space and common services offered the most if they wish to register in Vietnam. If the company does not have these available, Emerhub provides all these as add-on services.
- Business address USD 100 per month
- Emerhub provides a virtual office service to meet the business address requirement for the company registration.
- Companies must engage in a minimum 6 month leasing term.
- Tax & accounting services USD 1,500
Tax and accounting services are as follows.
- Representative office operational annual report USD 1,000
- It is submitted every year in January.
- Emerhub submits the annual report.
- RO is fined if the deadline for this report is missed.
- Bookkeeping USD 150 per month
Emerhub provides the following bookkeeping services.
- Internal accounting reports
- Payroll service USD 150 per month
Emerhub payroll services include:
- Monthly payroll calculation
- PIT calculations
- Annual PIT finalization
Emerhub helps make the company registration process smoother and less stressful. With our expertise in company registration, Emerhub guides you through the process, ensures that you understand the costs involved, and takes care of the registration on your behalf.
Additional Costs for company Registration in Vietnam
In order to successfully register a company in Vietnam, there are additional expenses that are essential for ensuring smooth operations.
The additional expenses required for running a company in the country depend on the nature of the business and its activities.
- Office rental:
In Vietnam, office rental cost starts from 5,275,000 VND USD 230 per month. The cost is subject to change depending on the company’s size and location.
- Employee salaries:
The average salary in Vietnam is around 6,800,000 VND (USD 295) a month.
- Communication and internet expenses:
High-speed internet (300 Mbps) in Vietnam costs 1,119,000 VND (USD 48.65) per month.
Strategies for minimizing the cost of registering a company in Vietnam
Starting a successful business in Vietnam requires careful planning and a clear understanding of your objectives and goals. One key aspect of this planning is considering the costs associated with registering your company. By being mindful of these costs and making informed decisions, you can help ensure the success of your business.
- Hire using an employer of record:
Get employer of record (EOR) services to minimize costs when setting up a company in Vietnam. EOR services offer an alternative to company formation and let you hire employees without registering a local entity. The EOR company becomes the legal employer and handles payroll and taxes, freeing you to focus on your core business. Learn more about EOR services
- Avoid unnecessary expenses:
Avoiding, such as a physical office space. This is achieved by having a clear understanding of your intended objective and opting for virtual offices or co-working spaces instead.
Register your company with Emerhub
The most important step of registering a company in Vietnam is selecting the right options based on your specific needs. By working with a professional service provider such as Emerhub, the process is made more efficient and streamlined, ensuring that you select the best options for your specific needs.
If you’re looking to register a company in Vietnam, talk to an Emerhub consultant today for assistance.
