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Welcome to our comprehensive Q&A session on setting up a business consultancy in Vietnam. As more foreign investors look to tap into Vietnam's growing economy, we've compiled the most common questions our customers have asked about establishing their presence in this dynamic market. From exploring different business structures to understanding the legal requirements, this guide aims to provide clear, concise answers to help you navigate the process of starting your consultancy in Vietnam.
Q1: What are the options for establishing a business consultancy company in Vietnam as a foreign investor?
A1:
There are three main options:
1. Establish a foreign-invested company (FIC)
2. Establish a local Vietnamese company
3. Register a Vietnamese local company and then acquire it through an M&A process
Q2: What are the pros and cons of establishing a foreign-invested company (FIC)?
A2:
Pros:
- The company is legally recognized and protected by the Vietnamese Government
- The investor has full decision-making rights from the beginning
- The investor can control the company by being a legal representative
Cons:
- More complicated process compared to a local company
- More compulsory annual reports to comply with
Q3: What are the pros and cons of establishing a local Vietnamese company?
A3:
Pros:
- Simpler and more time-saving establishment procedure
Cons:
- Need to find a Vietnamese partner
- Risk of losing control if the Vietnamese owner removes you as a legal representative
- Cannot directly remit profits officially and legally
Q4: What is the third option for establishing a business consultancy in Vietnam?
A4:
The third option involves:
1. Registering a Vietnamese local company
2. The foreign investor acquiring the local company after establishment (M&A process)
Advantages of this option:
- Quick initial setup
- Business can run immediately
- Company operation is not suspended during M&A process
- Official and direct profit remittance is possible
- Fewer compliance reports required
Q5: What information is needed to estimate the fee for Work Permit (WP) and Temporary Residence Card (TRC)?
A5:
The following information is required:
1. The city in which the company will be based
2. Capital amount
3. Investors: individual or entity
4. Nationality of investors
Q6: Is business consultancy accessible for foreign investors in Vietnam?
A6:
Business consultancy is generally accessible for foreign investors who come from nations that are members of the WTO. The investor's nationality needs to be confirmed to check this matter.
In conclusion, setting up a business consultancy in Vietnam offers exciting opportunities for foreign investors, but it also comes with its unique set of challenges and considerations. Whether you choose to establish a foreign-invested company, partner with a local entity, or pursue an M&A strategy, each option has its pros and cons that must be carefully weighed against your business goals and resources. Remember that factors such as location, capital, investor status, and nationality can significantly impact the process and associated costs. As you move forward with your plans, we recommend seeking professional advice to ensure compliance with Vietnamese laws and to optimize your business structure for success in this promising market.
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