Set up company in Ho Chi Minh City: the Essential Guide

Vietnam’s financial capital, Ho Chi Minh City, is a vibrant metropolis of over 10 million inhabitants and accounts for one-third of Vietnam’s total GDP. It is widely regarded as one of the fastest expanding marketplaces for technology, manufacturing, and the top developing property market in Asia-Pacific. Hence, the investors that set up company in Ho Chi Minh City could enjoy the opportunities the Vietnamese market has to offer.

Set up company in Ho Chi Minh City can be made easy 

Vietnam has offered first mover advantages for foreign investors to tap into HCMC’s market and contribute to the growing economy throughout the years.  There are still huge potentials in this growing market because of abundant labour skilled resources, growing middle income consumers.  Hence, we present all the information that you need to know before investing and setting up your own company in Ho Chi Minh City.

Company Setup Process and Requirements in Ho Chi Minh City
In Vietnam, opening a business as a foreigner is a breeze since you’re allowed to own up to 100% of any company in the most of industries. However, there are some sectors with restrictions on foreign ownership i.e. advertising, tourism, insurance, banking… In such situations, foreign investors must seek the assistance of a Vietnamese joint venture partner.

International businesses practice must be adhered to as World Trade Organization (WTO) agreements. Nevertheless, there are certain areas that approval from the corresponding ministries in Vietnam is essential for business operations i.e. Minimum Capital Requirement,  Legal Structures for Company Registration in Vietnam, Foreign Ownership Ratio…

Step by step guide to set up company in Ho Chi Minh City

Choose the right business structure
Choosing the right business structure for your company is crucial. In Vietnam, the most common types of business structures are Limited Liability Companies (LLCs), Joint-Stock Companies (JSCs), and Representative Offices. Each structure has its own advantages and disadvantages, so it’s important to choose the one that best suits the needs of your business

Compliance with Vietnamese laws and regulations
As a foreign entrepreneur, it is crucial to comply with Vietnamese laws and regulations. Make sure you have a solid understanding of the legal requirements for your specific industry and business structure. Failing to comply with the laws and regulations could result in severe penalties and fines

Register your business with the Department of Planning and Investment
One of the first steps in setting up a business in Vietnam is to register your company with the Department of Planning and Investment. You’ll need to submit the necessary documents such as a copy of the company’s charter, list of shareholders, and copy of your passport.

Obtain a business license
After your company is registered, you might need to apply for a business license. The type of license you need depends on the nature of your business. For instance, for retail trading, business license is required. The process for obtaining a business license may take some time, so it is recommended to work with a local lawyer in Vietnam to ensure a smooth and timely process.

Register for taxes
All companies in Vietnam are required to register for taxes. You’ll need to obtain a tax code and register for VAT (Value Added Tax) and CIT (Corporate Income Tax). In addition, you will need to keep careful records of your business transactions and finances to comply with tax regulations.

Open a bank account
Finally, you’ll need to open a bank account for your business. You’ll need to provide your business license and other necessary documents, and deposit the minimum required amount for covering the fee and expenses of maintaining the account.  The direct capital investment account (DICA) must be opened to receive the investment amount from oversea as committed in your investment proposal.  Vietnam has been depending on Foreign Direct Investment for economic growth hence this investment is very important for the government to track and you would better follow to transfer as committed.  It is also suggested you consider the bank that staff could speak English for better banking experience. 

In conclusion, setting up a business in Vietnam could be a complex process. It is recommended to work with a local lawyer in Vietnam to navigate the legal requirements and ensure compliance with Vietnamese laws and regulations. With the right guidance and preparation, your company can successfully establish itself in the Vietnamese market.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Benefits of Investors to Set up Business in Ho Chi Minh City

Ho Chi Minh City offers many benefits for foreign companies to do business and invest. Many investors are attracted to set up business in Ho Chi Minh City for many reasons.

Reasons investors set up business in Ho Chi Minh City

Ho Chi Minh City houses high number of population at working ages with growing income.  It has infrastructure for logistics system to support manufacturing, import and export, and local distribution in Vietnam.  It is the financial center of Vietnam.  And most important, the government always has policies to improve administrative procedures and improve investment environment to create favourable conditions for company to set up business in Ho Chi Minh City.

The population of Ho Chi Minh City is of more than 10 mil, earning a higher average income than other part of the country.  Consumer retail has found Ho Chi Minh City as an attractive market for investment in retail shops, malls, introducing quality consumer goods to the local.

Ho Chi Minh City offers adequate infrastructure such as the Sai Gon port systems, deep seaport access from Vung Tau port systems, Tan Son Nhat international airport, and possible Long Thanh international airport project, Saigon railway station, the expressways, etc, connecting the city to neighbouring countries in the region and other part of the world.  

Through setting up factories in industrial zones, processing zones, local and international manufacturing companies could take advantage of high quality labor resources at reasonable cost and move the finished goods to final destinations in US, EU with reasonable lead-time and expenses.  Consequently, the city has become leading industrial city of Vietnam, contributing more than 30% industrial production, 30% GPD and 30% national income to the country’s total.

Ho Chi Minh City is also a financial center, which the biggest stock exchange is located.  Many corporations, and investment companies has chosen Ho Chi Minh City to set-up management and investment offices to search for opportunities,  conduct Merger and Acquisitions and other business transactions, to leverage the annual growth of the country at more than 6%.

At the same time, the city government has been improving policies to support the removal of difficulties for foreign-invested enterprises investing in Vietnam  through fixing administrative procedures to shorten the administrative process, saving time for investors, offering “one-stop” mechanism at the main state agencies.

How ANT Lawyers could help investors to set up business in Ho Chi Minh City?

Our professional consultants and lawyers have assisted a number of foreign companies and individuals to conduct transactions, set-up companies, make investment through M&A, and actively involve in the assistance of the investors in Ho Chi Minh City in particular and the whole country for doing business in Vietnam.

Law firms in Ho Chi Minh City

ANT Lawyers, an English speaking law firms in Ho Chi Minh City is located in the business center that provides convenient access to our clients.

ANT Lawyers works with corporate and individual clients from across the sectors and offers a true spectrum of legal expertise, both contentious and non-contentious. The range of our experience enables us to advise on various matters from the precedent-setting to the purely procedural.

The common thread in everything we do is our ability to combine both commercial and legal perspectives. This means our clients can rest assured that, whatever the case or transaction, our lawyers have the experience to deliver legal advice and service that works in a commercial context.

Our English speaking lawyers in Ho Chi Minh City offer client with particular services that guide clients throughout investment, commercial transaction, M&A, civil transaction, property sales and purchase, IP registration, and dispute resolution procedures.

Please contact us to book your time in advanced to let us provide our best service.

Call our office at (+84) 28 730 86 529 , talk directly to our partner at +84 912 817 823, send us email ant@antlawyers.vn or visit our law firms in Ho Chi Minh City at ANT Lawyers HCMC Branch, 7th Floor, Me Linh Point Tower, 2 Ngo Duc Ke Str., District 1, HCMC. 

Let ANT Lawyers help your business in Vietnam.