Foreign investors understand that Vietnam offers fascinating business and investment opportunities. Trading
Owing to the government’s substantial support and trade agreements, as well as the increasing middle-income groups and changing consumer lifestyle, Vietnam’s trading sector has become an interesting market for international investors. Increasing number of foreigners are entering Vietnam to invest in trading companies thanks to the country’s favorable economic landscape.
In this article, we’ll discuss the prerequisites and procedures to start a trading company in Vietnam.
Read About Cekindo’s Company Registration Services in Vietnam
Requirements to Establish a Trading Company in Vietnam
Minimum Capital Requirements
There is no official minimum capital requirement to establish a trading company in Vietnam. However, based on the Enterprise Law, charter capital must be paid in full ninety days after receiving the business registration certificate. One must ensure that they have sufficient capital to fund their business startup and operations for a year.
Business Plan for Your Trading Company
Before establishing a trading firm in Vietnam as a foreigner, one must first develop a business plan that includes the following information:
- Trading company’s business activities
- Strategies and methods of running the trading business
- Plan for business and market development
- Workforce and labor utilization
- Review of efficacy and feasibility, as well as implications of the business plan
Trading Company’s Financial Plan
Before setting up a trading company in Vietnam, the authorities will review the financial plans in addition to the business plans.
The following are some key points and documents that a financial plan must include:
- Funding plans and sources
- Capital representation
- Relevant financial documents
- Income statement based on the latest audited financial statement (only for a trading company that has been incorporated for a minimum of 12 months)
RELATED: Vietnam’s Impressive GDP growth Report For 2021 and Beyond
Procedure to Set up a Trading Company in Vietnam
The incorporation of a trading company in Vietnam can be broken down into four steps:
1. Obtain an Investment License
The Department of Planning and Investment requires foreign investors to first apply for an investment license. In Vietnam, it takes about a month to process the same.
2. Acquire a Business Registration Certificate
Acquiring the Enterprise Registration Certificate, often known as a Business Registration Certificate, is the next step. The authority in charge of issuing this certificate is the Department of Planning and Investment.
This certificate can be obtained in just 7 working days. However, within 90 days of receiving the certificate, one must make their first financial investment.
3. Apply for a trading license
The application for a trade license is the third stage in establishing a trading firm in Vietnam. A trade license application requires the submission of relevant papers and the completion of an application form to the Department of International Trade. Post that, the department will send an official letter to the Ministry of Industry and Trade, which must be filed subsequently.
The Ministry of Industry and Trade will determine whether to approve or reject your application after obtaining the official letter. If required, they may also seek further documentation. Within 7 working days, after the application is granted, the applicant should get their trade license.
4. Product or Sale Approval Registration
It is imperative to ensure the legal aspects of products and services one wishes to sell in Vietnam. Moreover, while selling products, ensure to have the official product registration done as per the law.
One can begin importing products with their trading company once they have completed all of the preceding procedures. Please note that the restrictions for export and import in Vietnam must be understood thoroughly. It’s recommended to double-check that all of the shipping paperwork is up to date.
How Cekindo can Assist
Setting up a trading company in Vietnam can be a time-consuming process. Cekindo’s comprehensive business solution services will not only assist you with registering your company but will also ensure that you stay on top of all legal compliances. Following incorporation, we also provide HR and accounting services.
