Are you interested in starting your own restaurant business in Vietnam? Or perhaps you are considering investing in the country’s rapidly growing food service industry? This guide will walk you through the essential steps required to open a restaurant in Vietnam. We’ll explore the necessary business licenses and how to plan an investment in an existing establishment.
How to open a restaurant in Vietnam?
Setting up a foreign-owned restaurant business
The most common legal entity for foreign investors looking to open a restaurant in Vietnam is a Limited Liability Company (LLC). The Food and beverage industry is not subject to any restrictions on ownership, therefore you can benefit from 100% foreign ownership, as long as you fulfill the requirements:
- At least 2 shareholders
- A physical business address in Vietnam for your restaurant
- Designate mandatory corporate officers (Member’s council, chairman, director)
- Restaurant licenses:
- Investment Registration Certificate
- Business Registration Certificate
- Food Safety Certificate
- Environmental Protection Certificate
Emerhub can help you set up your business through our comprehensive company registration service in Vietnam. Our local team can also help you find a suitable business location to open your restaurant and determine the right type of property agreement. To learn more, read our foreigner’s guide to buying property in Vietnam.
Investing in an established restaurant in Vietnam
Investing in an existing restaurant business in Vietnam can be a faster and more cost-effective option because it already has an Investment and Business Registration Certificates and an established customer base. This also does not limit your capital contribution, thus allowing you up to 100% ownership of the company’s capital.
Once you have determined a prospective company in which you want to invest, Emerhub can manage the investment process in your stead:
- We register your capital contributions at the Department of Planning and Investment (DPI).
- If the capital contribution meets the regulations, you get approval within 15 days. If the application does not meet requirements, the department provides a written explanation.
- Emerhub can submit requests to transfer shares and capital contributions and change the shareholders or members of the company through the DPI. This process typically takes 1-2 weeks.
What is the business licensing process for opening a restaurant in Vietnam?
1. Applying for an Investment Registration Certificate (IRC)
The first step you must undertake to open a restaurant in Vietnam is registering your investment. An IRC officially records your contributed capital as a Foreign Direct Investment within a Vietnamese industry and grants your permission to conduct business within the food and beverage sector. The following documents are required for applying for an IRC:
- Personal Identification (for individual investors)
- Certificate of Establishment or equivalent documents proving legal status(for investments from an organization)
- Project proposal defining the objectives, scope, and financing of your restaurant, as well as other relevant details
- Financial statements for the past two years and a guarantee of the investor’s financial means
- Request for investment incentives should also be included, as well as an assessment of your project’s potential socio-economic effects
Emerhub’s local experts can oversee the Investment Registration Certificate application process for you, as well as help you determine the prerequisite documents for your specific investment project. The process generally takes up to 15 days.
2. Securing your Business Registration Certificate (BRC)
Once you have registered your investment and received your IRC, the next step to open a restaurant in Vietnam with foreign ownership is to acquire your BRC. This certificate acts as the official registration of your company in Vietnam. Below you’ll find the required documents for registering your restaurant business:
- Investment Registration Certificate
- A list of members, if your restaurant is under a multi-member limited liability company; or a list of partners for a partnership.
- Individual members have to provide a notarized copy of their ID or valid passport.
- Organizations have to provide a notarized copy of their Establishment Certificate.
- A notarized copy of the valid ID of the legal representative of each organization is also required.
- Company details (business address, corporate officers)
Emerhub can manage the BRC application process for opening your restaurant in Vietnam, and you will receive your certificate within 3 to 6 business days. This document can also allow you to import food products from abroad for your restaurant. Keep in mind, however, that imported goods are subject to product registration through the Vietnam Food Safety Authority.
3. Food Safety Certificate for restaurant businesses
Once you have secured your IRC and BRC, you must ensure compliance with food safety regulations put in place by the Vietnam Department of Health. As part of the company registration process, Emerhub will submit a written request in your name for a Food Safety Certificate along with the following required documents:
- Copy of the BRC
- A description of the facilities, devices, and proof that equipment meets food safety standards.
- Health certificates for the owners and employees involved in food production.
- Food safety training certificates for the owners and employees involved in food production.
The food safety certificate is issued for 3 years and can be renewed by following the same process. Renewal requests must be submitted at least 6 months before the expiration of the previous certificate. Restaurants that fail to comply with food safety regulations are liable to fines of up to 60 million VND.
4. Environmental Protection Certificate
The last mandatory licensing step to open a restaurant in Vietnam is obtaining an Environmental Protection Certificate. This process aims to ensure that your restaurant complies with local regulations regarding waste and wastewater disposal, collection, and treatment.
To apply for the certificate, Emerhub will submit details regarding the types of waste your establishment will be producing, and the measures you will take to comply with local laws. It is important to note that restaurants with an area of less than 200m² are exempt from having to apply for the certificate.
Open a restaurant in Vietnam while ensuring compliance with local regulations
Opening a restaurant in Vietnam can require additional certificates that are industry-specific or that are only required depending on the types of services or goods that your establishment will be providing. These certificates can be secured at any time following company registration but may be required before you start operations:
- Fire prevention and fighting certificate: Mandatory for restaurants to ensure that their premises meet safety standards and have fire prevention measures in place
- License for Alcohol sale for on-site consumption: This is required for selling alcohol and must follow Clause 7 of Vietnam law, which regulates the sale of alcohol and beer, and prohibits consumption within 100 meters of medical general education institutions.
- Retail license: Required if your restaurant sells alcohol or other products for off-premise consumption.
- License to Sell Tobacco Products: Necessary for selling tobacco products within your establishment.
Emerhub’s local advisors can help you determine what licenses you will need based on your specific planned operations. We will also handle the application process, as well as assist you with other requirements for company registration and purchasing property.
Ready to open your restaurant in Vietnam? Fill out the form below and book a call with an Emerhub consultant!
