Answer: According to current regulations, the Representative office of foreign traders in Vietnam (the “RO”) is required to submit the Annual Operation Report for the year of latest year to the Licensing Authority. Failure to comply with such regulations will result in administrative penalty ranging from 20 million to 40 million Vietnam Dong. Furthermore, failure to comply with such regulations in 02 consecutive years will result in the withdrawal of the RO’s Establishment License and closure of the RO.

By continually issuing favorable policies and incentives aimed at attracting inflows, and deciding to decrease the country’s corporate income tax levels to 20 percent from January 1, 2016, it is clear that Vietnam’s government is intent on taking a proactive approach to foreign direct investment. Enterprises and individuals interested in taking advantage of the country’s friendly investment environment therefore need to be aware of the various market entry structures available to foreign investors.

GBS - Creation of a company in Vietnam is slightly different to what an entrepreneur from another country might be used to. While the opportunities for companies based in Vietnam are compelling, the company registration process is more complex and bureaucratic than the USA, Australia and Singapore, for example.

Question: Our Company has made a merging operation with B. Ltd. After completion of the merger procedure, does our company have to register with the business registration agency? What are the requirements for registration dossiers?

First time foreign investors can either create a company or sign a Business Cooperation Contract with a Vietnamese partner. In both cases, they need to obtain an investment certificate.

The application process depends on the location of the registered office of the company or BCC (inside or outside special zone).

Under Vietnam Law, foreign investors are entitled to form Foreign Invested Company (“FIC”) under either of Wholly Foreign Invested Company or Joint Venture Company.

Both of Wholly Foreign Invested Company and Joint Venture Company can be structured as Limited Liability Company or Joint Stock Company like other countries.

Vietnam became the 150th member of the World Trade Organisation (WHO) in 2007. This opened the door for foreigners to invest and operate businesses in Vietnam. Individuals and organisations are allowed to choose their area of investment, the structure of their business and the method by which capital is raised, as long as their choices are in compliance with Vietnamese law, international treaties and commitments.

Question: The company I intend to establish has business lines which are required to have operating certificates in the registration dossier for new enterprise. Which individuals in the company must have operating certificates?

1.Foreign investors may set up an foreign company in accordance with Vietnamese law. Foreign company is a company which foreign investor will hold from and over 51% of charter capital.

Question: How much is the publication fee of the content of business registration on National Business Registration Portal?