Recently, Vietnam has been considered to be one of the optimal markets for foreign entrepreneurs to establish their presence in the country. Besides the form of Limited Liability Company and representative office, joint-stock company is also one of the preferable variants. Distinguished from the limited liability company form, joint stock company form is allowed to assign its charter capital into equal portions of shares and is assigned to its shareholders. The shareholders can be anyone, including foreign citizens. Therefore, a joint stock company can be either solely owned by foreigners or can be a joint venture between foreigners and locals. Although foreigners can open a solely foreign-owned joint stock company, there is also a risk of being limited to a number of business lines that a JSC can join.
Therefore, foreign investors should conduct research and consider designated business lines when applying for a JSC establishment. On the other hand, a joint venture between foreigners and locals is strongly recommended because the locals know which business lines to allow for foreigners, helping the foreign investors to save their time and costs when applying for a JSC establishment.
SETTING UP A JOINT-STOCK COMPANY (JSC) IN VIETNAM IN 2021
Buying shares from a Vietnamese JSC
At present, although the Government has open policies to attract foreigners/foreign companies investing into JSC in Vietnam, there are also some compulsory regulations about following process and procedure that foreign investors must comply with.
Steps, procedures, and processing time
Process and procedure for foreign investors to buy shares of Vietnamese companies
# Step 1: Applying for approval of share buying of a JSC
Application for approval includes:
Besides, there are some other legal dossiers applying to each case
# Step 2: Foreign investors carry out buying shares of JSC
# Step 3: Change the business registration content on the Business Registration Certificate
SETTING UP A NEW FOREIGN-OWNED JSC
In case you might not want to cooperate with locals, a solely foreign-owned joint stock company will be a good fit although the business lines will be limited for this sub-type of joint stock company. Moreover, the processing time and costs for foreign investors are higher than the former one, which can be considered as an obstacle in setting their presence in Vietnam. Also, there are more mandatory regulations and procedures to which the foreign investors have to adhere.
For foreign individual investors:
For foreign investment organizations:
Steps and procedures
The establishment process for a solely foreign-owned joint stock company will be conducted with the following steps:
# Step 1: Carry out the procedures for applying for an investment certificate with a business investment project in Vietnam
# Step 2: Carry out the procedures to apply for a business registration certificate
# Step 3: Carry out initial tax declaration procedures and monthly/quarterly/yearly tax reports.
In addition, after the establishment of a foreign-invested company, in the course of operation, if you want to change or add any relevant content, then it is necessary to carry out the procedure for changing the investment certificate.
For further information please contact:
5th Floor | Platinum Building | 145 Dien Bien Phu Street, District 1 | Ho Chi Minh City | Vietnam
Tel: 028 39102358 | 028 39102359
Whatsapp/ Zalo/ Viber: +84938228856 | +84906640505 | +84906315522
www.visa5s.com | www.ditravel.vn