Guide to Business Formation in Vietnam 2024

Establishing a business in Vietnam is the first and most important step on any business journey. This article provides a detailed guide on the necessary steps and procedures, helping you best prepare for the business registration process.

Step 1: Choose the appropriate business entity type. Vietnamese law recognizes several entity types: Single-member LLC, Multi-member LLC, Joint-stock Company, Partnership, and Sole Proprietorship. Each type has its own advantages and disadvantages.

Step 2: Prepare business registration documents including: Business Registration Application, Company Charter, List of founding members/shareholders, and copies of members' identification documents.

Step 3: Submit documents at the Department of Planning and Investment where the business will be headquartered. Standard processing time is 3-5 business days.

After receiving the Business Registration Certificate, the company needs to complete subsequent steps: seal engraving, tax code registration, bank account opening, and labor registration.

For foreign investors, the establishment process includes an additional step of obtaining an Investment Registration Certificate from the Department of Planning and Investment or Industrial Zone Management Board, depending on the investment sector.

Selecting the right entity type and preparing accurate documentation from the outset will save time and costs while avoiding legal risks during business operations.