Opening a Company as a Foreigner in Hanoi, Vietnam | A Guide

Vietnam is an attractive destination for foreign investors, with its growing economy, favorable business climate, and low labor costs. Hanoi, the capital city of Vietnam, is a hub for trade and commerce, making it a popular choice for foreigners who want to start a business there. However, opening a company in Hanoi as a foreigner can be a complex process, with various regulations and requirements that need to be met.

Types of Companies in Vietnam

• Limited Liability Company (LLC): An LLC is a popular choice among foreign investors, as it offers a flexible structure and limited liability protection to shareholders. An LLC must have at least two members, and its capital can be raised through the sale of shares.
• Joint Stock Company (JSC): A JSC is similar to a public limited company in Western countries, with shares traded on the stock market. A JSC must have at least three members and a minimum capital of VND 10 billion (approximately $435,000).
• Sole Proprietorship: A sole proprietorship is a business owned and run by a single person. This type of company is only suitable for small businesses and does not offer liability protection to the owner.

Costs and Required Papers

• Company Registration: To register a company in Hanoi, you will need to pay a fee of approximately VND 3 million (approximately $130). This fee covers the cost of registering your company and obtaining a business license.
• Business License: A business license is required for all types of companies in Vietnam, and can be obtained by submitting the necessary paperwork and paying the required fee. The cost of a business license varies depending on the type of company and the size of the business.
• Work Permit: To work in Vietnam, you will need to obtain a work permit. The cost of a work permit varies depending on your nationality, and the length of your stay in Vietnam.
• Tax ID Number: To register your company in Vietnam, you will need to obtain a tax ID number. The cost of obtaining a tax ID number is approximately VND 1 million (approximately $45).

Conclusion

Starting a business in Hanoi, Vietnam can be a rewarding experience, but it requires careful planning and a thorough understanding of the local regulations and requirements. To ensure a smooth and successful process, it is important to work with a local law firm or business consultant who can guide you through the process and help you navigate the complex regulations and requirements.