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Location to open company

Finding office is an important part when you start a business. You and your staff need a place to work. A specific office address in Vietnam is certainly required as well by the government when you apply for investment licenses.

 

Choosing location in the Industrial Zone 

In general, manufacturer/producer prefer to choose location for business in Industrial Zone. Because the professional infrastructures are already available, reasonable rent fee and outstanding investment incentives.

In order to have a location in an Industrial Zone, investors shall sign a long-term leasing contract (at least 5 years). Moreover, they need to invest on fire protection system and plan for environmental protection.

Provincial Industrial Zones Authority is the licensing and management unit of enterprises operating in industrial zones

 

Choose location outside the Industrial Zone

 

1. Under Vietnamese Laws, apartment buildings are not allowed to locate company, since it violates the purpose of apartment building that is for living only.

2. You shall rent office in an office building. You need to ask lessor provide legal documents which show that building has office leasing function (construction license, investment license, etc.)

                                                                                    Bitexco Financial Tower in Ho Chi Minh City
                                                                                                         A typical office

3. Houses are allowed to locate business office there

4. One legal address may use as the headquarters of many companies, as long as each company has its own independent space

I don’t encourage you use virtual/fake address to register your company there, because that may not be approved by competent authority. Even if yes, later your company may have some legal troubles with that fake location. For example, local police or tax staff may often comes there to inspect headquarter.

Provincial Department of Planning and Investment is the licensing and management unit of enterprises operating outside the industrial zones

 

Memorandum of understanding (“MOU”)

Your mission is choose the good location for your business purpose. You can find it by self or use service of real estate agent. Each business type is required different legal conditions for location. For instance, location for restaurant or factory… shall be able to design the fire protection system. Since those conditions are very huge, you can contact me to have consultation on what location’s condition requires for your business type.

THEN, negotiation terms and conditions of leasing MOU. Notice legal status of lessor:
– If lessor is individual and not own any business license, your company can not have any deduct from rent location money for tax purpose.
– If lessor is individual business households, it shall has a license which have business scope: leasing real estate. Later, your company can have deduct from rent location money for tax purpose. But lessor also has to pay tax for tax department.
– If lessor and owner is company, that company shall has business registration certificate with business scope: leasing real estate. If lessor is subleasing party. Third party needs to provide main contract with owner, therein shows that it allows sublet rights. It also needs to have business license certificate with business scope: leasing real estate (sublet).
NEXT STEP, sign the leasing MOU and pay deposit. The official leasing contract will be signed after you have company. This is the list of documents that you need to take from lessor:
– Main version of MOU, at least 03 original copies
– Certificate of land use right/and ownership of housing, at least 03 notarized copies
– Enterprise registration certificates of lessor (if any), at least 03 notarized copies
– Main leasing contract, in case you sign contract with 3rd party (if any), at least 03 notarized copies
 
 

 

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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