How to Set up Business Venture in Vietnam?
To help foreigners start a business in Vietnam, we would like to introduce the service to assist in setting up business venture in Vietnam.
Foreign investors could make direct invest in Vietnam through setting up 100% (100 percent) capital of foreign investors, or setting up joint venture between domestic and foreign investors or putting resources into the legally binding types of: BTO, BTO, BT, BCC, and BO.
Types of enterprise for foreign investors to invest in Vietnam are as following:
Limited Liability Company (LLC)
A limited-liability company (LLC) may not issue securities to mobilize capital.
Joint Stock Company (JSC)
The main difference between Joint Stock Company (JSC) and Limited Liability Company (LLC) is the Joint Stock Company (JSC) can raise funds by offering shares or securities.
In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company (JSC). Management system of JSC is more complicated than LLC.
Partnership
Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets. Meanwhile, Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.
Representative Office of Foreign Trader
Representative Office is not permitted to straightforwardly lead benefit making exercises in Vietnam (i.e: the execution of agreements, deal or acquisition of products, or provision of services...
Branch of Foreign Trader
In accordance with the law of Vietnam and any international treaty that the Socialist Republic of Vietnam is a member of, the Branch of Foreign Trader is permitted to carry out activities such as the purchase and sale of goods and other commercial activities with its license for establishment.
Investing by Signing Contracts
BBC contract (Business co-operation contract) means the investment form signed between financial backers to co-work in business and to share benefits or products without creating a legal entity.
Fabricate work move contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; furthermore, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.
BTO contract (Build-transfer-operate contract) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; however, upon completion of construction, the investor shall transfer the facility to the State of Vietnam. Then the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.
BT contract (Build-transfer contract) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam. Then the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance following an agreement in the Build-transfer contract.
Foreign investors may sign BT contract, BTO contracts and BOT contract with a competent State body to implement infrastructure construction projects in Vietnam. Especially, The contracts are for projects in the fields of electricity production, drainage, transportation, water supply, and waste treatment...
At ANT Lawyers - a law firm in Vietnam, Our English speaking lawyers help clients overcome cultural barriers and achieve their strategic and financial outcomes, and regulatory compliance while doing business in Vietnam.
Comments