Minimum capital requirements | Vietnamese foreign companies (limited companies, joint-stock companies, representative offices)
A common question for foreign investors and companies is what is the minimum capital requirement in Vietnam?
How much should I pay?
This article describes the capital requirements for each legal entity type associated with foreign investors.
Foreign investors in Vietnam usually choose between a limited company and a joint stock company.
Vietnam Limited Liability Company (LLC)
Ideal for small businesses.
The corporate structure is very simple, and limited liability employees are members instead of shareholders.
One limited liability employee is called a one-person limited company, and two limited liability employees is called a two-person limited company. 80% of Japanese companies are expanding as a limited liability company.
Vietnam Corporation (JSC)
Ideal for medium to large companies, it has a more complex corporate structure.
Stock Company (JSC) is an entity recognized by Vietnamese law as a holding company in which three or more shareholders own shares.
The branch is suitable for foreign investors who aim to earn income in Vietnam by conducting commercial activities without establishing an independent corporation. Regarding the operation of the Vietnam branch, it should be kept in mind that the branch operation is limited to that of the parent company.
Vietnam Representative Office
The representative office is suitable for non-profit business activities in Vietnam.
For example, cases such as market research aimed at expanding into Vietnam apply.
If your business activities meet the requirements of a representative office, this business model is the simplest and most concise way.
Minimum capital requirements for foreign companies in Vietnam
Currently, there are no minimum capital requirements for foreign companies to enter the market.
According to the Corporate Law, the registered capital must be paid in full 90 days after receiving the business registration certificate.
Minimum capital requirements, industry differences
The required capital requirements vary from industry to industry.
In Vietnam, there are conditional business lines that set a minimum amount of capital.
Real estate industry needs capital of at least 20 billion dongis.
The legal capital of the mutual insurance company is VND10 billionWill be.
The Ministry of Planning and Investment determines minimum capital requirements depending on whether it is a capital intensive business area.
For example, large-scale factories and industries also need higher capital.
Generally, the paid-up capital of foreign companies is US$10,000.
However, it can be less or more.
However, the amount of capital required depends on the business content.
For more information, we recommend that you consult an expert who is familiar with business operations, accounting, and law of foreign-affiliated companies in Vietnam.