Top FAQs for Foreign Nationals in Incorporation in Vietnam

Establishing a business entity in Vietnam as an international entrepreneur presents remarkable opportunities in one of Southeast Asia's fastest-growing economies. Whether you're an overseas investor or a foreign national seeking to launch your Vietnamese enterprise, understanding the incorporation landscape is crucial for success.

This comprehensive guide addresses the most frequently asked questions about foreign nationals in incorporation, covering everything from ownership rights to documentation requirements. From foreign nationals in incorporation visa requirements to foreign nationals in incorporation processing time, we'll navigate the essential aspects that matter most to international business founders establishing operations in Vietnam.

How foreign founders start in Vietnam

Understanding Ownership Rights for International Entrepreneurs

Can Non-Citizens Establish and Own Vietnamese Business Entities?

Vietnam permits 100% foreign ownership of a business for most sectors, making it an attractive destination for international investors. The incorporation procedure for international entrepreneurs follows established regulations under Vietnamese law. Foreign investors can register a company in Vietnam under the legal common forms: Limited Liability Company, Joint Stock Company, Partnership, and Business Cooperation Contract.

International investors can hold complete ownership stakes in Vietnamese entities across numerous industries, though certain sectors maintain ownership restrictions for national security or strategic reasons. The formation process remains transparent and standardized, providing clarity for foreign nationals navigating Vietnamese business regulations.

Do International Companies Qualify as Entity Owners?

For Limited Liability Companies: Absolutely. Foreign investors can establish a new legal entity in which they own 100% of the capital or domestic and foreign investors jointly own the company. Your overseas enterprise can serve as the parent company, maintaining full control over Vietnamese operations.

For Joint Stock Companies: International entities may acquire equity stakes through share purchases. This structure proves particularly suitable for larger investments or those requiring multiple shareholders. The flexibility of Vietnamese corporate law accommodates various ownership configurations based on your business objectives.

Foreign Nationals in Incorporation Visa Requirements

Is Documentation Required for Business Ownership?

Understanding foreign nationals in incorporation visa requirements represents a critical step in your Vietnamese business journey. While you can own a Vietnamese business entity, actively managing operations requires appropriate visa authorization. For foreign investors staying in Vietnam, companies get a visa from Immigration Department and foreigners can stay in Vietnam with an investor visa.

What Authorization Types Permit Business Operations?

DT3 Investor Visa (Golden Visa): Available to foreign investors who set up a business with a minimum investment of $150,000 USD. This renewable visa provides long-term residency options (5-10 years) for substantial investors demonstrating commitment to Vietnam's economic development.

DT4 Investor Visa: A 1-year renewable visa for foreign investors starting businesses with a smaller investment than the DT3 visa. This pathway suits entrepreneurs launching smaller-scale operations or testing market viability before expanding.

Business Visa (DN): Suitable for foreign nationals conducting business activities, attending meetings, or managing operations. This visa category accommodates various business purposes and can be issued for multiple durations based on specific needs.

Work Permit and Temporary Residence Card: For foreign nationals serving as company directors or employees, obtaining a work permit and temporary residence card ensures full legal compliance. The processing time typically takes five working days with a fee of VND 3.6 - 4.1 million (USD 145 – USD 165).

Permanent Residence Card (PRC): A PRC holder can stay in Vietnam without a visa however, the card must be re-issued every 10 years. This option suits long-term investors and business owners establishing permanent connections to Vietnam.

Address and Operational Requirements

Is a Vietnamese Address Mandatory for Entity Formation?

Yes, a physical business address in Vietnam is mandatory for company registration. We remind investors of our virtual office services which can be used as business addresses for Vietnam companies. This requirement ensures regulatory compliance while providing flexibility for international entrepreneurs.

Submit the company charter, owner details, and office lease agreement as part of your registration documentation. The business address appears on your Business Registration Certificate and serves as your official correspondence location.

When Is a Tax Identification Number Necessary?

The Tax Identification Number (TIN) is automatically issued upon successful business registration. All local companies, no matter if incorporated by national or foreign investors, will be taxed on their worldwide income in Vietnam. The corporate tax rate in Vietnam has a standard rate of 20%.

Understanding tax obligations from the outset prevents compliance issues. Vietnamese LLCs set up as joint ventures or deemed as startup companies can obtain a break from the corporate tax for the first few years of operations, providing incentives for qualifying enterprises.

What About Electronic Identification Requirements?

Starting July 1, 2025, all businesses in Vietnam must transition to using a corporate electronic identification (e-ID) account for handling online administrative procedures. This digitalization initiative streamlines government interactions and modernizes business operations for foreign nationals establishing Vietnamese entities.

What foreign investors need to start right

Foreign Nationals in Incorporation Processing Time

How Long Does Entity Formation Take?

For incorporating a 100% foreign-owned company in Vietnam, the process typically spans 40-60 working days, excluding public holidays, from the time the necessary documents are submitted. Understanding foreign nationals in incorporation processing time helps set realistic expectations for your business launch.

Processing time: 15-30 days for representative offices, which serve market research purposes but cannot generate revenue in Vietnam. The timeline varies based on complexity, completeness of documentation, and specific provincial requirements.

What Affects Processing Duration?

Several factors influence foreign nationals in incorporation processing time: provincial authority workload, business sector restrictions requiring additional approvals, accuracy and completeness of submitted documentation, translation requirements for foreign-language documents, and coordination between multiple government departments.

For foreign nationals, obtaining investor visas adds to the overall timeline. The investor visa process takes around 05 working days after company establishment, requiring proper planning to ensure smooth operations commencement.

Don't let complex timelines delay your business launch. Vinex's experienced team manages the entire incorporation process for foreign nationals, ensuring efficient handling of all documentation and compliance requirements. Schedule your consultation now.

Banking and Financial Considerations

Establishing banking relationships represents a crucial step for foreign nationals operating Vietnamese businesses. Opening corporate accounts requires presenting your Business Registration Certificate, company charter, identification documents for legal representatives, and proof of business address.

Vietnamese banking regulations require physical presence for account opening, though some international banks operating in Vietnam offer streamlined processes for existing clients. Initial deposit requirements vary by bank and account type, typically ranging from minimal amounts for basic accounts to substantial sums for premium services.

Foreign currency accounts accommodate international transactions, while Vietnamese Dong accounts handle domestic operations. Understanding currency controls and repatriation regulations ensures smooth financial management for foreign national business owners.

Compliance and Reporting Obligations

Annual compliance obligations include submitting enterprise registration information updates, filing corporate income tax returns, preparing and submitting audited financial statements (for qualifying companies), maintaining proper accounting records, and complying with labor law requirements for employees.

The other taxes which need to be considered when operating an LLC in Vietnam is the business license tax which must be paid on an annual basis. This fee varies based on registered capital and business scale, representing a routine operational cost.

Not budgeting for ongoing compliance – Annual reports, tax filings, and bookkeeping are all part of running a business here. Professional accounting services ensure compliance while allowing entrepreneurs to focus on business growth.

Sector-Specific Considerations and Restrictions

Not understanding ownership rules – While foreign ownership is allowed in many sectors, there are exceptions. Certain industries maintain foreign ownership limitations or require special licensing:

Conditional Business Sectors: Education, healthcare, media and publishing, telecommunications, and securities services may restrict foreign ownership percentages or require partnership with Vietnamese entities.

Prohibited Sectors: Activities relating to national security, defense, or deemed unsuitable for foreign investment remain restricted or prohibited entirely.

Special Economic Zones: Vietnam maintains several special economic zones offering preferential treatment for foreign investors, including streamlined licensing and enhanced tax benefits.

Understanding sector-specific regulations before commencing incorporation prevents delays and ensures compliance throughout your Vietnamese business journey.

Timeline and legal checklist for foreign incorporation

Strategic Considerations for International Entrepreneurs

Which Province Should You Choose for Formation?

Provincial selection significantly impacts your business operations. Major commercial centers like Ho Chi Minh City, Hanoi, and Da Nang offer robust infrastructure, established business communities, and easier access to skilled workforce. However, these locations typically involve higher operational costs.

Industrial zones and economic zones provide preferential tax treatment, simplified licensing procedures, and purpose-built infrastructure for manufacturing and export-oriented businesses. The Board of Management of industrial zones, export processing zones, high-tech zones, and economic zones are responsible for licensing foreign investments within their zones.

What Documentation Should You Maintain?

Professional incorporation services provide formation documents, but foreign nationals should maintain: notarized and legalized passport copies, Business Registration Certificate (original and certified copies), company charter and amendments, seal registration documentation, tax registration certificates, visa and work permit documentation, board resolutions and meeting minutes, audited financial statements, and all correspondence with regulatory authorities.

Common Mistakes to Avoid

Underestimating Timeline Requirements: Inadequate planning for foreign nationals in incorporation processing time delays market entry. Begin preparation well in advance of your intended launch date.

Choosing Inappropriate Business Structure: Each entity type serves different purposes. Limited Liability Companies suit most foreign investors, while Joint Stock Companies accommodate larger capital requirements and public offerings.

Neglecting License Requirements: Beyond business registration, many activities require specific licenses or permits. Identify all applicable requirements during planning stages.

Inadequate Capital Planning: Registered capital requirements vary by sector and must align with business scale. Insufficient initial capital creates operational constraints and compliance issues.

Ignoring Tax Planning: All local companies, no matter if incorporated by national or foreign investors, will be taxed on their worldwide income in Vietnam. Professional tax advice optimizes structures and ensures compliance.

Vietnam Market Opportunities for Foreign Nationals

Vietnam's economic transformation continues attracting foreign nationals seeking growth opportunities. Strategic location within ASEAN, competitive operational costs, improving infrastructure, growing consumer market, and favorable trade agreements position Vietnam advantageously for international business.

Manufacturing sectors benefit from Vietnam's integration into global supply chains, while services sectors experience rapid growth driven by rising middle-class consumption. Technology and innovation sectors receive government support through various incentive programs, creating opportunities for foreign nationals bringing expertise and capital.

The Vietnamese government actively encourages foreign direct investment through streamlined procedures, enhanced investor protections, and ongoing regulatory improvements. Understanding these dynamics helps foreign nationals identify optimal market entry strategies.

Choose the right location. Secure your success

Your Path Forward as a Foreign National Entrepreneur

Navigating foreign nationals in incorporation in Vietnam requires understanding ownership rights, visa requirements, processing timelines, and ongoing compliance obligations. While the process involves multiple steps, Vietnam's transparent regulations and government support facilitate successful business establishment for international entrepreneurs.

No citizenship requirement exists for entity ownership in most sectors, though proper visa authorization remains essential for active management. Multiple visa pathways accommodate different investment levels and business objectives. Processing timelines typically span 40-60 working days, requiring advance planning and complete documentation preparation.

Vietnam's dynamic economy, strategic location, and business-friendly environment make it an increasingly attractive destination for foreign nationals seeking Asian market opportunities. Whether you're expanding existing operations or launching new ventures, understanding these fundamental aspects positions you for success.

We appreciate your time in reading this comprehensive guide and hope it clarifies the incorporation journey for foreign nationals in Vietnam. Success requires preparation, professional guidance, and commitment to compliance.

Incorporate Invest Succeed With Vinex

Ready to transform your international business vision into Vietnamese reality? Vinex's specialized team has helped hundreds of foreign nationals successfully navigate the incorporation process. From initial consultation through ongoing compliance support, we're your trusted partner in Vietnamese business formation. Contact Vinex today for a personalized assessment of your incorporation needs and discover how we can accelerate your path to Vietnamese business ownership.

Vinex offers tailored solutions for investors under Vietnam tariffs:

• Company Formation: Secure ERC/IRC in 1-3 months.

• Legal & Tax Advisory: Ensure compliance with Vietnam export duties to U.S. and local laws.

• Banking & Logistics: Optimize accounts and supply chains.Contact Vinex at +84 98 1111 811 or contact@vinex.com.vn to launch your venture.