What would Investors who set up a company in Vietnam be pay attention?

Before you start doing business as a company in Vietnam, Investors who set up a company in vietnam be pay attention to:

 

  1. Choose a Business Structures
  2. Legal representative
  3. Intellectual Property Protection 
 

1. Choose a Business Structures

There are lots of different types of business entities that you can choose from when setting up a company in Vietnam. Each type has its own advantages and disadvantages, depending on your business goals, preferences, and budget. The main types are:

Limited Liability Company: An enterprise with no more than 50 members in which a member may be an organization or an individual, who shall only be liable for the debts and other obligations to the extent of the amount of their contributed capital. There are 2 types of LLC, respectively, a single-member LLC and a multiple-member LLC

Joint Stock Company: An enterprise in which the charter capital is divided into equal portions called shares with a minimum of 3 shareholders. The shareholders of a JSC may be organizations or individuals, which also have limited liability

Partnership: An enterprise with at least 2 members being co-owners of the company jointly conducting business. General partners must be individuals, responsible with all their assets for the obligations of the company

– Private company (sole proprietorship): An enterprise owned by one individual who is liable for all activities of the enterprise to the extent of all assets (unlimited liability)

2. Legal representative

In the process of establishing and operating a company, choosing a legal representative is a crucial factor. The legal representative is an individual who represents the company in transactions and acts as the person responsible for resolving legal issues, including before courts and arbitrators, as stipulated by law.

A company can have more than one Representative, but at least one must be present in Vietnam. If only one legal representative residing in Vietnam remains and they leave Vietnam for more than 30 days, they must delegate their rights and obligations in writing to another individual residing in Vietnam to act as the legal representative. In this case, the legal representative remains responsible for the execution of the delegated rights and obligations.

3. Intellectual Property Protection

Intellectual property rights (IP) are playing an increasingly important role in promoting innovation and creativity of both businesses and society. An effectively developed IP protection strategy can optimize your business’s potential. To achieve this, understanding the laws related to intellectual property rights such as copyright, trademarks, patents, plant variety rights, geographical indications, trade secrets, and other areas is extremely important. When businesses already have goods or services for export or are preparing for export, trademark registration becomes even more essential. It’s important to note that trademarks are only protected within the territory they are registered in, so registering in Vietnam does not guarantee protection in international markets. Therefore, businesses with strong brand products and export plans should proactively register trademark protection in other countries.

Case Study
tax-solution-for-foreign-investors-in-vietnam