Investment in setting up trading company in Vietnam is considered as investment in conditional investment areas.
How to Set up Trading Company in Vietnam under Vietnam Laws?
Once an underdeveloped country, in the last two decades Vietnam has shown an incredible growth in the world economic scene, especially in the criteria of investment attraction. For a foreign company that is interested in expanding the business in a new country or region, Vietnam is a promising destination. In order to start a company or specifically a trading company in Vietnam, foreign investor should comprehensively understand the formality and function of the legal entity to be formed according to Vietnam Law. The consultancy and guidance of skilled and qualified lawyers in Vietnam law firms throughout the process shall mostly be needed.
The Legal Basis for a Foreign Company to Set up Trading Company in Vietnam
The legal basis for a foreign company to set up a company in Vietnam is stated in the Enterprise Law of Vietnam:
Can Foreigners Set up Trading Company in Vietnam?
Foreign organizations and individuals will be entitled to establish and manage enterprises in Vietnam in accordance with this law, with some exceptions.
Foreign investors may invest in the form of 100% foreign- owned capital to establish limited liability companies, joint-stock companies, partnerships or private enterprises under the provisions of the Enterprise Law and relevant laws.
What Type of Documents to Submit to Set up Trading Company in Vietnam?
The foreign investor shall mostly needs to fulfill the investment registration procedures at provincial-level state agencies in charge of investment in order to be granted the investment certificates, in accordance with Vietnam law in investment.
The dossier required for the investment registration shall comprise of an examination dossier, papers showing the capability to satisfy the conditions which the project is required by law to satisfy, for investment projects in conditional investment domains i.e. specific goods to be traded at HS code level, experience in trading area, how the trading procedures would be carried out, potential customers in Vietnam.
Investment Capital Required to Set up Trading Company in Vietnam
In particular, for investment capital, it should be noted that, trading company needs to commit larger investment in terms of capital, since its function is to identify competitive suppliers, negotiate and purchase their products and sell them through a distribution network in Vietnam.
In the meantime, the investor needs to have experience in trading to run the business smoothly and efficiently. The investor should explain why the company would contribute to the development in Vietnam when applying for investment license at Department of Planning and Investment, and Ministry of Trade and Commerce.
How Vietnam Lawyers Could Help Foreign Investors to Set up Trading Company in Vietnam?
Vietnamese lawyers play a crucial role in assisting foreign investors to set up trading company in Vietnam throughout the establishment process, ensuring compliance with local laws and regulations.
1. Understanding Local Regulations
Vietnamese lawyers bring valuable expertise in navigating the intricacies of local regulations. They guide foreign investors through the legal requirements to set up trading company in Vietnam, cover aspects such as business licensing, permits, and compliance with industry-specific regulations. This nuanced understanding helps streamline the process and minimizes the risk of regulatory hurdles.
2. Legal Advice and Due Diligence
Before the investors set up trading company in Vietnam, the foreign investors must conduct thorough due diligence. Vietnamese lawyers provide essential legal advice, offering insights into the legal framework, potential risks, and compliance obligations. They assess the feasibility of the investment, helping investors make informed decisions about market entry strategies.
3. Documentation Assistance
To set up trading company in Vietnam involves a significant amount of documentation. Vietnamese lawyers assist foreign investors in preparing and submitting the required paperwork, ensuring accuracy and compliance with local standards. This includes drafting articles of association, obtaining necessary licenses, and addressing any legal formalities related to the establishment process.
4. Communication with Authorities
To set up trading company in Vietnam often requires interaction with various government authorities. Vietnamese lawyers act as intermediaries, facilitating communication between foreign investors and relevant regulatory bodies. This helps in expediting the approval process and ensures that all legal requirements are met in a timely manner.
5. Navigating Challenges
Foreign investors may encounter unforeseen challenges during the establishment process. Vietnamese lawyers are equipped to address these challenges, providing legal solutions and mitigating potential risks. Whether it’s overcoming regulatory hurdles or resolving legal disputes, their expertise contributes to a smoother and more secure entry into the Vietnamese market.
6. Compliance Management
Maintaining compliance with Vietnamese laws is essential for the long-term success of a trading company. Lawyers play an ongoing role in assisting foreign investors with compliance management, keeping them informed about changes in regulations and ensuring that the company operates within the legal framework.
Vietnamese lawyers play a pivotal role in assisting foreign investors in establishing trading companies in Vietnam. Their expertise in local regulations, legal advice, documentation assistance, and communication with authorities are invaluable assets for navigating the complexities of the Vietnamese business landscape. With the support of competent legal professionals, foreign investors can confidently navigate the establishment process, fostering successful and compliant entry into the dynamic Vietnamese market.
About ANT Lawyers, a Law Firm in Vietnam
We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.
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You could learn more about ANT Lawyers Foreign Investment Practice or contact our English Speaking Solicitors in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529