A Practical Guide to Setting Up a Company in Vietnam for New Investors

A new rising star in the list of fastest-developing investment sites in Asia today is the Vietnam investment location. Owing to its high growth rates, low labor costs, and growing consumer market, doing business in the region can be of immense value to entrepreneurs from across the global landscape.

This article discusses the crucial information about the requirements of setting up a business in Vietnam, the costs of setting up a company in Vietnam, and the process of setting up a foreign company in Vietnam. This article also stresses the role of One IBC in the setting up of businesses through its main incorporation service of incorporating a limited liability company in Vietnam.

Understanding the Fundamentals of Setting Up a Company in Vietnam

The setting up of businesses in Vietnam has various government formalities and requirements. The foreign investor must decide on the type of their legal entity and its purposes of doing business. They also need to arrange the documents needed and obtain the required licenses and permits. The popular form of legal entity chosen by the foreign party to do business in Vietnam can be a Limited Liability Company (LLC). It has many legal benefits in Vietnam.

Start strong with clear steps for setting up a company in Vietnam

A company will begin the setting-up process by establishing its business activity, registering its address, and developing its constitution (charter). As setting up a company in Vietnam involves following the legal formalities closely, the company will also need to comply with the regulations of the Vietnamese government in regard to the rules of investment and taxes. Preparing early will save time and ensure that the company lays the proper foundation to grow in the burgeoning Vietnamese market.

Key Steps for Setting Up a Business in Vietnam

Although investments in the country are encouraged, setting up a business in Vietnam involves carefully following government regulations. The formalities involved are:

Understand the essential steps for setting up a business in Vietnam

Business sector:

• Define business sector and investment structure
• Obtain legal investment capital (as needed in the industry)
• Drawing up corporate documents like investor passports & financials
• Apply for the Investment Registration Certificate (IRC)
• Submit the Enterprise Registration Certificate (ERC) application. This marks the final
• Register taxes owing, such as VAT and corporate taxes
• Open a corporate bank account
• Finish post-licensing requirements regarding public notification and seal registration

All these steps will help create a legal framework for the businesses. Since the procedure regarding setting up a business in Vietnam involves various government departments and paperwork, the investors need to be careful about the accuracy of the information at each step to avoid rejection of the application. Being aware of the regulations regarding the relevant sector and the capital needed will definitely assist the foreign investors in the procedure and establish their businesses in the growing market of Vietnam.

Evaluating the Cost of Setting Up a Company in Vietnam

The costs of setting up a company in Vietnam depend on the industry, geographical location, and corporate ownership. The general incorporation costs include:

Plan ahead based on the cost of setting up a company in Vietnam

• Government fees for IRC and ERC
• Document notarization and legalisation
• Renting a Registered Office Address 
• Capital for particular sectors of business
• Professional service fees
• Post-licensing compliance fees

In the context of the surrounding market trends, the costs of setting up a company in Vietnam can be perceived as competitive. However, there are many factors that need to be taken into consideration as part of the overall final costs of setting up a business in the Vietnamese market. 

These factors could be licensing requirements of the industry the company belongs to, audit requirements of the company, and the fact that the company has to be involved in regular taxes and contributions to the Vietnamese government. All of this increases the costs of incorporating the business. However, the concept of planning becomes important in this context.

What Foreign Investors Must Know About Setting Up a Foreign Company in Vietnam

Setting up a foreign company in Vietnam involves additional requirements; this applies mainly to non-ASEAN foreign investors. For foreign-owned businesses, there must be in-depth investment plans presented and submitted to the approval of the local Department of Planning and Investment.

Explore key considerations when setting up a foreign company in Vietnam

Key considerations are:

• Certain industries in the business environment require the involvement of a Vietnamese
• Some sectors require a minimal level of invested capital
• Observation of foreign investment regulations is closely watched
• The licensing schedule can be affected depending on the business operations being carried out.

However, the existence of the above requirements has not made Vietnam less receptive to foreign investors. In fact, the procedure has been improving each year. For many foreign investors, setting up a foreign company in Vietnam can also be part of their long-term planning requirements, which may include the need to comply with the requirement of submitting reports, the requirement of presenting financial statements that are audited, and the requirement of proper tax registration. As such, the existence of the above requirements has helped Vietnam remain a preferred destination for many entrepreneurs in the world.

Common Challenges When Entering the Vietnamese Market

Despite strong opportunities, investors must prepare for challenges such as:

• Local administrative procedures that may require clarity and patience
• Language and cultural differences
• Industry-specific licensing requirements
• Tax compliance obligations
• Sectoral restrictions for 100% foreign ownership

Working with local experts helps avoid delays and ensures a smooth incorporation experience.

How One IBC Supports Setting Up a Company in Vietnam

One IBC provides comprehensive support for investors planning on setting up a company in Vietnam. With strong knowledge of local regulations and incorporation procedures, the firm streamlines the entire process from documentation to business launch.

One IBC assists with:

• Preparing investment planning documents
• Drafting and submitting IRC and ERC applications
• Legalizing foreign investor documents
• Advising on ownership structure and compliance
• Opening corporate bank accounts
• Managing accounting and tax registration
• Post-licensing corporate secretarial services

The company specializes in registering a limited liability company in Vietnam, making it easier for foreign investors to establish operations confidently and compliantly.

Conclusion

Vietnam continues to grow as a promising business destination for investors across Asia, Europe, and North America. To succeed, companies need a clear understanding of the legal framework, licensing requirements, and steps involved in setting up a company in Vietnam.

With strong regional experience and a full suite of incorporation services, One IBC helps investors navigate the administrative process smoothly. Whether preparing documents, applying for licenses, or registering a limited liability company in Vietnam, One IBC provides the guidance needed to launch operations with confidence and compliance.