Open Company in Viet Nam: Legal Guide

Opening a business in Vietnam is a strategic move for both local and foreign investors. However, to successfully open company in Viet Nam, it is essential to follow the correct legal procedures and comply with updated regulations. This guide by Ke Toan Pham Gia Accounting provides a clear, accurate, and SEO-optimized overview to help businesses get started efficiently and legally.

Legal framework for opening a company in Viet Nam

Vietnam has developed a transparent legal system to support business formation, but understanding the legal foundation is critical before starting. Investors need to be aware of the key laws and decrees governing enterprise registration.

Key laws and regulations

The process of company formation is governed by:

• Law on Enterprises 2020 (amended and effective updates)
• Law on Investment 2020
• Decree 01/2021/ND-CP on enterprise registration
• Decree 168/2025/ND-CP guiding enterprise registration procedures

According to Decree 168/2025/ND-CP, businesses must declare accurate information about ownership, legal representatives, and registration details to ensure transparency and compliance.

Conditions to open company in Viet Nam

Before proceeding with registration, businesses must meet certain eligibility conditions and prepare essential information. This ensures the application is approved quickly without delays or amendments.

Eligibility requirements

Under the Law on Enterprises:

• Individuals and organizations have the right to establish enterprises
• Founders must have full civil legal capacity
• Restricted subjects include public officials and certain state personnel

Basic company requirements

To open a company in Vietnam, the following elements are required:

• Unique company name
• Valid business address in Vietnam
• Registered business lines
• Charter capital
• Legal representative

These requirements must be clearly stated in the registration dossier submitted to authorities.

Types of companies in Viet Nam

Choosing the right company structure is essential for business operations, taxation, and legal liability. Each type has its own advantages depending on business goals.

Common business structures

• Limited Liability Company (LLC)
• Joint Stock Company (JSC)
• Partnership
• Private enterprise

Each structure differs in terms of ownership, capital contribution, and legal responsibility.

Foreign-invested companies

For foreign investors, additional procedures apply:

• Apply for Investment Registration Certificate (IRC)
• Ensure compliance with market access conditions
• Register enterprise after obtaining IRC

This step is mandatory under the Law on Investment for foreign-owned businesses.

Process to open company in Viet Nam

Although Vietnam has simplified administrative procedures, the company registration process still requires proper documentation and compliance with regulations. Following the correct steps will help avoid delays.

Preparation of registration documents

According to Decree 168/2025/ND-CP, a standard dossier includes:

• Application for enterprise registration
• Company charter
• List of members or shareholders
• Legal documents of individuals/organizations
• Declaration of beneficial ownership

Submission and approval process

Businesses can submit applications via:

• Business Registration Office
• Online National Business Registration Portal

Processing time is typically 3 working days if documents are valid. After approval, the Enterprise Registration Certificate will be issued.

Post-establishment procedures

After completing the registration process, businesses must continue with several mandatory procedures to officially operate. These steps are crucial for compliance with Vietnamese law.

Required actions after registration

• Publish enterprise registration information
• Engrave company seal
• Register tax code and digital signature
• Open a corporate bank account

From recent updates, enterprises are also required to integrate electronic identification systems in administrative procedures.

Tax and accounting compliance in Viet Nam

Maintaining compliance after business registration is just as important as the setup process. Companies must strictly follow tax and accounting regulations to avoid penalties.

Key tax obligations

• Value Added Tax (VAT) declaration
• Corporate Income Tax (CIT) reporting
• Personal Income Tax (PIT) for employees
• Annual financial statements

These obligations require accuracy and timely submission in accordance with Vietnamese tax laws.

In reality, many new businesses face challenges in handling accounting and tax procedures. That is why choosing a reliable partner for open company in Viet Nam becomes an effective solution. With professional support from Pham Gia Accounting, businesses can ensure compliance, minimize risks, and optimize operational efficiency from the early stages.

Important notes when opening a company in Viet Nam

To successfully operate a business in Vietnam, it is important to avoid common mistakes and ensure proper planning from the beginning. Careful preparation will help businesses save time and costs.

Common mistakes to avoid

• Incorrect business line registration
• Using an invalid or residential-only address
• Lack of understanding of tax obligations
• Failure to declare beneficial ownership as required

Practical recommendations

• Consult legal and accounting experts
• Choose the right company structure
• Ensure transparency in all declarations
• Stay updated with regulatory changes

Opening a company in Vietnam is a promising opportunity, but it requires strict compliance with legal regulations and proper preparation. By understanding the process and leveraging professional support, businesses can establish a strong foundation for growth.

Pham Gia Accounting is committed to providing reliable consulting and comprehensive support, helping investors successfully open company in Viet Nam in a fast, compliant, and cost-effective manner.