Planning to start a business in Vietnam? You’re probably wondering just how much money you’re going to need. In this article, I will explain the capital of company from the legal point of view.
What is the minimum capital for a FDI company in Vietnam?
There is no requirement for minimum capital under current regulations. In fact, Vietnamese authority agencies will consider capital level depends on each investment project. One thing for sure that you can not open company without money. Department of planning and investment (“DPI“) will ask you prove that you have financial ability to implement a feasibility investment project. The “feasibility” will depend on what kind of business, size, location of business… Here is some example for your information (they are not applicable in anytime and any case):
– Information and technology project: minimum 20.000 – 25.000 USD;
– Consulting project: minimum 15.000 USD;
– Trading project: minimum 50.000 – 100.000 USD;
– Construction project: minimum 50.000 – 100.000 USD, etc.
Assets contributed capital
Cash is the most popular asset which used to contributed capital. You can use Vietnamese Dong (“VND”) or freely convertible currencies (such as: USD, EUR, KRW and JPY). Foreign currency shall be converted to VND under exchange rate at the time contribute the capital
3. Intellectual property rights, technology, know-how
4. Other fixed assets
Other estates and real estates (such as: machines, equipments, cars, motorbikes and houses) can capitalize in company as the fixed assets. Previously, assets contributed to an company upon its establishment shall be valued by its members or founding shareholders on the principle of consensus or by a professional valuation organization. If these assets are valued by a professional valuation organization, the value of the assets contributed as capital shall be accepted by a majority of members or founding shareholders.
Investors shall transfer of ownership of assets contributed as capital.
Regarding the assets with registered ownership or value of land use rights, the capital contributor shall carry out the procedures at a competent state agency to transfer the ownership of such assets or the value of land use rights to the company. The transfer of ownership of assets contributed as capital is not subject to registration fee;
Regarding the assets the ownership of which is not subject to registration, capital contribution shall be made by handing over assets contributed as capital, certified with a minutes.
Required documents to prove financial ability of investor:
Bank statement of individual investors show in which he has balance in account that is equal or more than his registered capital. This document shall be original and translate into Vietnamese
Audited Financial Statement of company in 2 latest fiscal years, in case investors are organizations. These documents need to be certified and made consular authentication in Vietnam Embassy in country of investor. Two certified and legalized copies shall be required.
Duration to contribute capital
Investors shall make full payment for the capital they have registered to purchase within 90 days since the date the investment registration certificate is granted. In order to do that, company needs to open a Foreign direct investment capital account at a Commercial Bank in Vietnam.
SHOULD YOU ENGAGE IN A LAWYER AND AN ACCOUNTANT
Company registration may seem like a major step in a new business venture for many people. Like anything, it can be daunting if you haven’t done it before and you definitely to make sure that it’s done correctly. Otherwise, you may waste a lot of time and pay fines if you do mistake, even a little one.
The process is generally quite smooth if you involve a professional to help you out. Every one wants to spend less time administering their business and more time running it. In Feline Legal, with many years experience in corporate services, lawyers and accountants will assist you and provide advance with forming your company. We also complete the paperwork, register your company and follow steps after that. You can save a lot of time and enjoy good services with reasonable price
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