When it comes to forming foreign invested company in Vietnam, you have two choices: do it by yourself or use an incorporation service.
Not surprisingly, in Vietnam: companies who offer this are oozing value when compared to other jurisdictions.
Below we will take a look at why it may be worth considering any of the many award-winning Vietnam organizations, who are leading the industry.
Trying to form a foreign invested company by yourself can be exciting, but also daunting. It takes time, effort and research and unless you are comfortable with filing legal paperwork to ensure your company is compliant with the local regulation in which you plan on operating, it can be complicated and confusing.
Related: How to set up a foreign company in Vietnam
Fortunately, you don’t have to go it alone. You could hire a lawyer, which could put a dent in your savings, or for a reasonable cost, use a formation company to do the entire formation process for you.
What are the benefits of using a company formation service?
1. It saves you money
Filing application forms to establish your foreign invested company in Vietnam by yourself can lead to mistakes. For example, completing and filing documents incorrectly can cause delays, which sets you back on doing the work you ideally want to concentrate on – getting your business off the ground.
When you use a professional service to form a company, it doesn’t matter if you understand the legalities of forming a company or not. They do everything on your behalf and have experts who constantly carry out company formations, resulting in faster, more accurate results.
In addition, using an incorporation service can be much more cost effective than hiring a lawyer to form your foreign invested company in Vietnam. The best incorporation services range from $999, each option will have particular set of features and pricing to suit your business structure and operations..
2. You can avoid mistakes
When forming your company by yourself in Vietnam, you will need to have knowledge of the laws, procedures, costs and requirements of the city or province in which you intend to do business. Unless you have some legal experience or specialist understanding of the laws, it is best to use a professional formation service take on this task for you.
Having your foreign invested company created by a business formation service who knows the requirements of each city and how things work in the city in which you plan on doing business, can expedite the formation of your company, leaving you stress-free.
3. It keeps your business compliant
When forming your foreign invested company in Vietnam, you will have to ensure it is compliant with the local regulation. To do this you will need the following.
- File Formation Documents: To make your foreign invested company officially exist, you will need to file company formation documents, known as Articles of Organization, Certificate of Organization, or Certificate of Formation…with the local authorities. Because company formation companies know each local rules, they can expedite this process for you;
- Registering and obtaining the Company’s seal;
- Preparing necessary dossiers and representing the Company to submit the application for tax declaration, social insurance….at competent authorities;
- Advisory services on opening bank account; notifying the bank account information with licensing authority;
- Personal income tax registration, declaration and finalization for expatriate and local employees;
- Advisory services on employee recruiting and labor issues; Drafting and registering statutory labor collective agreement and internal labor regulations.
Most company formation companies offer the above services as, saving you the time and worry from having to complete these documents correctly.
4. Paperwork processing is simplified
The amount of paperwork and time it takes to research and successfully file a foreign invested can be laborious and complicated. With a company formation service, you simply answer a few questions regarding your business, and they take care of the rest for you.
5. You are supported
Forming your own business in Vietnam by yourself can be stressful, especially if you run into problems or are unsure of what to do. The company formation services offer extensive support by phone and email, even at GBS, you can get support by Instant message over WhatsApp, Viber at +84903189033 or chat with its advisor directly from the website.
Some have websites that feature valuable free educational content, informative FAQs and city-by-city guides, while others can help you find accountants and legal professionals in the city that your company being operated, a service most foreign invested companies require sometime during their formation.
After forming my business is there anything else I need to do?
There are ongoing compliance requirements you will have to meet. A service provider can keep you notified of any legal requirements you need to take care of with the authority long after you file your company, allowing you to run your business worry-free.
Conclusion
When forming a foreign invested company in Vietnam you are required to pay government fees, irrespective whether you formed your business yourself or used a company formation service to do it for you. Using a formation service adds to your costs, but it also takes a lot of your plate, saving you time, and ensuring your business is compliant and remains compliant with the laws. There are few countries in the world where incorporation is so affordable and efficient as in Vietnam.
By Vietnam Insider staff with support by the lawyers of GBS, an investment consulting firm in Vietnam