Set up joint venture company in Vietnam is commonly a standard Vietnam limited liability company incorporated by
- 1 foreigner (our Client) and
- 1 Vietnamese shareholder.
Such legal structure usually corresponds to a Government requirement for foreigners to do business in many industries including but not restricted to
- transportation services
- conventional and online advertisement
- agriculture and forestry
- electronic games business and
- most storage services.
In such a case, foreign ownership will be subject to a maximum level, from 49% up to 99%. Joint venture company setup may also be requested by some of our Clients, willing to benefit from the specialist local knowledge of their Vietnamese partner.
The Vietnam joint venture company (partly foreign-owned LLC)
Like foreign-owned LLCs, Vietnam joint venture companies will be required to
- appoint a resident legal representative
- open a capital account with a local bank, required for share capital injection and transfers of future earnings abroad and
- obtain approval for a foreign investment certificate (FIC), required by the Vietnam government to allow foreigners to invest in Vietnam.
Setting up a Vietnam joint venture company will however be more complex than an LLC, as our Client will face
- higher share capital requirements and
- longer licensing delays.
All Vietnamese joint ventures also require at incorporation to provide the authorities with
- a registered address in Vietnam, which may be provided by Vinasc if needed and
- a bank certificate of deposit for the amount of share capital, which will need to be transferred no later than 12 months after incorporation is complete.
Post incorporation, our Client will have to submit
- an annual return for license renewal and
- annual audited financial statements, which are a prerequisite for any remittance of earnings to their parent company. If needed, Vinasc may also provide auditing services.
A joint venture company is usually used when our Clients want to invest in an industry partially closed to foreign investment. It can also be beneficial when our Clients already have an existing business partner in Vietnam.
Finally, if you are interest in Vinasc’s setup company in Vietnam, please contact us. As a result, we will send a letter of quotation for your consideration.