How to Establish a Business in Vietnam

Lately, Vietnam has turned into an appealing objective for unfamiliar speculation because of its benefits of safety, political soundness, and great geological situation to exchange with the world. This serves as both the gateway to the economies in the western Indochina Peninsula and the region's connection hub. In addition, in order to make it easier for foreign investors to begin doing business in Vietnam, the government of Vietnam has been increasingly implementing more preferential policies.

Investors in Vietnam must first select an appropriate type of business based on the number of capital contributors, amount of capital contributed, and purse size before starting a business in Vietnam. Foreign individuals and organizations are permitted to establish a limited liability company, joint stock company, partnership, or private enterprise under Vietnam law.

The business line is the next issue to take into consideration. The company must register the appropriate business lines related to business activities in order to continue operating. On the off chance that the chose line of business doesn't need conditions, the venture can go into activity after the foundation of the organization. The majority of businesses would engage in this non-conditional business activity. However, if the investor selects a conditional business line, the company must first meet the necessary requirements, submit an application for a business license in accordance with the requirements, and then begin operations. This is regarded as a conditional investment area, with restrictions such as a license requirement, minimum charter capital, and foreign ownership ratio...

Investors must also select a location for their business that is legally permissible for business operations. The address of the business must be on Vietnam's territory and meet the requirements of the business's purpose, such as not being in a dormitory or apartment building solely for living; The factory must be in the right area for business...

Newly established businesses must have their own proper name, which cannot be the same as or similar to a business that has already been registered in order to serve the management of the state and facilitate business activities. When naming an organization, businesses are not permitted to use the names of functional agencies or state management agencies. The proper name and type of business must be included in the business's name. Businesses can use abbreviations or English names to avoid competing with other businesses. However, they must ensure that the company name does not create confusion by not including any cultural symbols, prefixes, or suffixes.

In Vietnam, investors must apply for an Investment Registration Certificate at an appropriate authority. All projects wishing to establish a new legal entity in Vietnam must go through this procedure. Depending on the project, an investment certificate application takes about 30 days to process. Foreign individuals and businesses must prepare an application for an Enterprise Registration Certificate at the Department of Planning and Investment within seven days of receiving an Investment Registration Certificate. The enterprise now possesses legal status in accordance with the provisions of the Vietnam Law on Enterprises.

The company could perform monthly compliance services on its own or with the assistance of professionals, such as submitting foreign labor reports, investment reports, tax reports, and health and insurance reports to authorities in order to avoid penalties from the start.

ANT Lawyers is a law firm in Vietnam that will always contact the authorities to obtain legal updates on issues pertaining to investment registration or conducting business in Vietnam.   

Read More

How Do I Get a Business Registration Certificate in Vietnam?

How do I Get a Business Registration Certificate in Vietnam?

Each association and individual wishing to set up an unfamiliar claimed organization in Vietnam will have to meet a few particulars conditions as declared under the Law on Venture and Regulation on Big business. The investor will also need to check with the law governing the investment area in certain areas that are being considered as conditional investments. The investor must submit an application for business registration once the investment registration certificate is completed.

The following is a description of the procedure for applying for a certificate of enterprise registration for a limited liability company or joint stock company with two or more members:

Dossiers:

i) Application form for enterprise registration

ii) The company’s charter.

iii) A list of founding shareholders and shareholders being foreign investors/ a list of capital contribution members.

iv) Valid copies of:

Copies of the ID cards or other forms of identification for individuals who are founding shareholders and foreign investors or members; list of organizations that are authorized representatives of foreign shareholders.

The decision to establish the organization, the business registration certificate, or another similar document, along with the authorization letter; the identification cards or other forms of identification used by organizations' authorized representatives, such as founding shareholders and foreign investors.

A copy of the certificate of business registration or an equivalent document must be notarized, legalized, and authenticated if the shareholders are foreign organizations.

The foreign investors' Certificate of Investment registration, as required by the Investment Law.

State Authority: Business registration office of the province where the enterprise’s headquarters is situated.

Period: within 03 working days from the full receipt of the dossiers

Result: Business enrollment office will give the authentication of big business enlistment or on the other hand on the off chance that the application isn't palatable, business enrollment office will advise the candidate regarding important corrections and supplementation to organization.

The government of Vietnam generally supports direct foreign investment. In the event that the financial backer countenances difficulties at state authority, whom don't give notice or solicitation of supplementation to the application for big business enrollment, the financial backer virus hold up a grievance as endorsed by guidelines of regulation on protests and reprimand to the state power to safeguard its right in carrying on with work and interest in Vietnam. The investor could benefit from the assistance of a law firm in Vietnam with expertise in both business registration certificate and dispute resolution.

The venture is qualified for carry on with work from the issuance date of the endorsement of big business enlistment. Businesses are permitted to participate in conditional business lines if they meet all requirements and are able to maintain compliance with those requirements throughout their operations.   

Read More

What Are the Advantage of Foreign Investors in Setting up Business in Vietnam in 2023?

What Are the Advantage of Foreign Investors in Setting up Business in Vietnam in 2023?

Located in an important position of Southeast Asia, Vietnam has a long coastline of more than 3,000 km. With a diverse geographical structure interspersed with mountainous, highland and coastal areas suitable for general economic zones, Vietnam has ideal conditions to develop the trade and tourism industries. When setting up business in Vietnam, investors can enjoy financial advantage such as corporate income tax, import and export tax and land finance incentives.

Incentives on corporate income tax: In recent years, Vietnam has gradually reduced the corporate tax rate (CIT). In the 2004-2008 period, CIT was 28%, in the 2009-2013 period it was 25%, from 2014 to 2015, 22% and from January 1, 2016 until now, 20%. In addition, the provision of high corporate income tax incentives for a number of key fields that need to be encouraged for investment has contributed to attracting investment, encouraging business, creating favorable conditions for enterprises to increase accumulation, increase investment in the economy, and promote growth, hence promoting investors in setting up company in Vietnam.

Import and export tax incentives: The 2016 Import and Export Tax Law has added regulations that high-tech enterprises, science-technology enterprises, science-technology organizations are exempted from import tax on raw materials, materials and components that cannot be produced domestically within 5 years from the date of commencement of production. There are also import and export tax incentives being applied such as:

(i) Exemption from import tax for goods imported for processing for foreign countries and when exporting and returning products to foreign parties, they are exempt from export tax;

(ii) Goods imported for processing that are exempted from tax, goods temporarily imported for re-export and goods being raw materials and supplies in service of the production of exported goods can be extended the tax payment time to 275 days from the date of filing the customs declaration; goods temporarily imported for re-export may be extended the tax payment time to 15 days from the expiration date;

(iii) Exemption from import tax on goods to create fixed assets for investment projects in areas of special investment encouragement, investment promotion fields and investment projects in the locality have difficult socio-economic conditions.

Incentives on land finance: Foreign enterprises investing in Vietnam can be applied adjusted reduce rate (%) calculating the general land rent from 1.5% to 1%. In addition, the State also stipulates the application of the land price adjustment coefficient in determining the land price to calculate the land rent, therefore, making Vietnam increasingly becoming a favourable destination to attract foreign investment and company establishment in Southeast Asia.

In addition, the development of a transparent and consistent investment legal system is increasingly becoming a good tool to promote foreign direct investment inflows into Vietnam in the spirit of the state ensuring the rights of the investors’ ownership, investment capital and other interests of foreign organizations and individuals, creating favorable conditions and simplifying procedures for such organizations and individuals to invest in Vietnam. Compared with the foreign investment laws of some countries in the region, the law on foreign investment in Vietnam is considered by the international public to be more open and attractive, for example applying the form of 100% foreign capital ownership, administrative procedures are simplified, non-discriminatory between Vietnamese enterprises and foreign-invested enterprises. The law has been transforming in the direction of considering investment and business as the matters of enterprises and investors, which the investors have full authority to make decisions from investment projects to the formation and business of the enterprise and that the government only guides, creates an open legal environment, has favorable mechanisms and procedures, supervises and enforce the law.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

Source ANT Lawyers: https://antlawyers.vn/library/what-are-the-advantage-of-foreign-investors-in-setting-up-business-in-vietnam.html   

Read More

How Vietnam Has Simplified Procedures to Register Business in Vietnam?

By the end of 2019, there have been more than 30,000 FDI projects choosing Vietnam for investment, with a total registered capital of about 362 billion USD. Recently, business propensity of Vietnam is highly concentrated on the private sector, attracting foreign investors to the Vietnam market.

As Vietnam has built diplomatic relationship with nearly 190 countries around the world and signed about 15 Free Trade Agreements with important trading partners, Vietnam’s participation in various free trade agreements has created a strong impetus for foreign investors from developed countries to set their first steps in the Vietnam.

To be able to register a business in Vietnam, investors need to carry out procedures to apply for the Investment Registration Certificate. After being granted the Investment Registration Certificate, the investor shall  then apply for Enterprise Registration Certificate.

To carry out the process of applying for the Enterprise Registration Certificate, firstly, the investors need to choose a name for the business, which must not be identical or confusing to the name of another business already registered in the National Database of Business Registration on a national scale, except for businesses that have been dissolved or have had effective court decisions declaring businesses bankrupt.

After that, the investors or the authorized person need to prepare a complete set of application dossiers in accordance with the law and submit it at the Business Registration Office where the head office is planned to be located. The Business Registration Office will check the validity of the application dossier, based on the appointment date on the Receipt, the investors or the authorized person can go to the Business Registration Office to receive the results of the application or Register to receive results by post. The time limit for considering and handling the dossier is 03 working days from the date of receiving the valid dossier.

The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:

-The registered business lines are not in the prohibited business sectors;

-The business’s name is set in accordance with the provisions of law;

-Having a head office as prescribed by law;

-Having a valid business registration dossier as prescribed by law;

-Fully paying the enterprise registration fee as prescribed by law

Over the years, investors have built confidence in the Vietnam’s business and investment environment. The socio-political and macroeconomic stability are prominent features for the growth of Vietnam’s business potential. The Vietnam government has determined to  simplify the process for investment application. Hence, Vietnam is and will continue to be an attractive investment location, a promising destination for foreign investors for applying for investment registration certificate and register a business in Vietnam compared with other neighboring countries in the region.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

Source ANTLawyers: https://antlawyers.vn/library/procedures-to-register-business-in-vietnam.html   

Read More

How to protect your trademark in Vietnam?

How to protect your trademark in Vietnam?

In Vietnam, trademark registration is the first step in obtaining trademark protection. A trademark opposition may be filed to prevent a mark application that is pending from being granted. Litigation is the last option for resolving disputes involving trademark protection in Vietnam.

A trademark is a sign that helps separate one company's goods or services from those of others. Products and services trademarks play a crucial role in the expansion of the business, alongside patents and industrial designs. A trademark connects a business and its clientele. Customers will be more likely to use goods or services if the trademark is strong. The infringement of a trademark is inevitable when the trademark is well-known and has significant economic benefits from the sale of goods or services.

The owner of a trademark has two options for registration: either directly register a trademark in Vietnam by filling out a registration application with the Vietnam NOIP, or use Madrid's system to seek protection in Vietnam. In accordance with Vietnam's intellectual property law, the trademark owner must prepare, apply for registration, and pay a fee for the first option. If a trademark needs to be protected in multiple countries, such as Vietnam, the owner can register it using Madrid's system.

The trademark owner must assess the degree of infringement and damage in each location where a trademark violation occurs in order to select appropriate solutions. In the beginning, the owner of a trademark may protect themselves by requiring the trademark violator to stop their violations, apologise, and make amends. Owners of trademarks have the right to seek compensation in the event of damage. If negotiations or mediation fail, the trademark owner can use a settlement mechanism or submit a denunciation application to the Vietnam NOIP and ask the appropriate state agencies to handle acts of infringement. Acts of infringement may necessitate litigation. In general, civil litigation proceedings are more complex than arbitration proceedings. Civil litigation takes precedence when the trademark owner requires a court decision to end trademark infringement. In the remaining cases, arbitration is the better option because it is less expensive, takes less time to settle, and is more adaptable.

The client company's competitive advantage is heavily reliant on trademarks. Through trademark registration, oppositions, and other trademark protection resolutions in Vietnam, ANT Lawyers' IP service in Vietnam assists you in securing protection for these priceless intellectual assets. 

Read More

How do labour disputes in Vietnam get resolved?

How do labour disputes in Vietnam get resolved?

A labour dispute is a disagreement between parties in an employment relationship regarding their rights, responsibilities, and interests. Individual labour disputes between employees and employers and collective labour disputes between employers and labour collectives are examples of labour disputes. The measures and principles of labour dispute resolution outlined in Chapter XIV of the Labour Code 2012 will be used by the competent agency, organization, or individual to settle any labour dispute.

Labour Dispute Law Firm in Vietnam

The following are methods for settling labour disputes: negotiation, grassroots conciliation, settlement of individuals and organizations competent to settle labour disputes.

People's Court's labour conciliator is a person or organization with the authority to settle individual labour disputes. conciliator of labour; Chairman of the People's Committee in the district; Concerning labour rights and conciliators, collective labour disputes can be settled by the People's Court; Collective labour benefit disputes can be settled by the Labour Arbitration Council.

Negotiation is a method of resolving a dispute in which the parties to a dispute deal directly with each other in order to reach an agreement on the settlement of the dispute. In fact, this is the most widely used solution. During the negotiation process, the parties will discuss issues related to the dispute, and propose solutions to resolve that dispute. The decision is made on the basis of agreement between the parties themselves and is not the result of any external pressure.

Conciliation is a strategy for resolving disputes involving third parties; however, conciliators do not make decisions; rather, they only support and direct the parties as they negotiate. Except for disputes regarding disciplinary measures in the form of dismissal or disputes regarding the unilateral termination of the labour contract, individual labour disputes must go through the conciliation procedure of a labour conciliator before requesting a court to settle them, as stated in Clause 1, Article 201 of the Labour Code of 2012. benefits, damages, and compensation when a labour contract is terminated; between employers and domestic helpers; on health insurance in accordance with the law; on social insurance in accordance with the law; on health insurance in accordance with the law on the payment of damages incurred by labourers and businesses and other entities that contract labour abroad. The labour conciliator is required to keep a record of the successful conciliation if the two parties reach an agreement. On the other hand, if the parties are unable to come to an agreement, the labour conciliator will propose a conciliation plan for them to consider. If the parties accept the conciliation plan, the labour conciliator will record that the conciliation was successful. The labour conciliator is required to keep a record of the unsuccessful conciliation if either of the parties rejects the plan for conciliation or if a disputing party has been properly summoned twice but is still absent without a reasonable explanation.

When a request for resolving a collective labour dispute regarding rights is made, the dispute resolution procedure that should be followed is that of the Chairman of the district People's Committee. To consider and resolve labour disputes dynamically, district-level People's Committee chairpersons must base themselves on labour laws, collective labour agreements, registered labour rules, and legal regulations and agreements.

For collective labour benefit disputes, the competent authority is the Labour Arbitration Council. There must be representatives from both sides of the dispute at the Labour Arbitration Council meeting. It is the duty of the Labour Arbitration Council to assist the parties in self-negotiation. The Labour Arbitration Council must document the successful mediation and issue a decision acknowledging the parties' agreement if the parties reach an agreement or accept the mediation plan. The Labour Arbitration Council is obligated to record a mediation that was unsuccessful and give the labour union the right to initiate procedures for a strike within three days if the two parties are unable to come to an agreement or if one of the disputing parties has been summoned for a second time but has not shown up for any reason that could be considered plausible.

Individual labour disputes and collective labour disputes over rights are resolved through trial, in which the Court issues a judgment or decision to settle the case. After the dispute has been settled in other stages without success, the most common method of resolving it is through litigation. In accordance with the stringent guidelines laid out in the Civil Procedure Code of 2015, a judicial body with special state power resolves labour disputes at the Court. The fact that the court's decisions regarding labour disputes are guaranteed to be enforced by state coercive measures is this method of dispute resolution's greatest advantage.

When labour disputes arise, everyone involved emmployers, the labour union, and employees should pay close attention to selecting the best means of resolving them. For efficiency, it is also recommended to consult with lawyers from a labour dispute law firm in Vietnam that specializes in employment law. 

Read More

Professional law firm in Vietnam

ANT Lawyers is a law firm in Vietnam with offices in Hanoi and Ho Chi Minh City. We are a Vietnam-based law firm that is a part of Prae Legal, a global network of 150 countries and five continents of law firms. We have developed relationships with lawyers from all over the world as a result of this network. ANT Lawyers are able to handle international cases involving foreigners because of this collaboration.

We focus on providing potential solutions that best meet the requirements of business and legal clients as a reputable law firm in Vietnam. We help customers achieve their goals while protecting their interests, minimizing risks, and following the law.

We offer corporate and individual clients from all industries a comprehensive array of contentious and non-contentious legal services. We are able to offer guidance on a wide range of topics, from setting precedent to strictly procedural matters, thanks to our knowledgeable and highly skilled staff.

As a consequence of this, our clients can rest assured that, regardless of the case or transaction, our lawyers at the law firm in Vietnam possess the expertise necessary to provide legal guidance and service that is relevant to the business world.  

Read More